How good have surging gold prices really been for our explorers?
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Gold prices have surged in 2019, breaking through the A$2,000 barrier and continuing to climb.
Gold stocks notably rallied back in June on the day gold went above $2,000. But in the longer run, have stocks been following the trend?
Overall they have. ASX small cap gold stocks have gained 27 per cent in 2019. But of course not all gold stocks have advanced and only a handful have surged at rates most other peers can only dream of.
The most notable mover had been Spectrum Metals (ASX:SPX), which has shot up nearly 2,000 per cent on the back of spectacular drilling results at its Penny West project.
Next is Andromeda Metals (ASX:ADN), which has repositioned itself with a primary focus on high purity alumina, but also has some gold projects. A further four stocks have tripled and another 13 have gained between 100 and 200 per cent.
Echo Resources (ASX:EAR) just crossed the barrier today after Northern Star (ASX:NST) made a takeover offer.
But not all stocks have enjoyed the gains. While companies can decline because of the industry they are in, some gold stocks have declined because they did not appear to shareholders to be fully pouncing on this opportunity.
The biggest decliner is Argonaut Resources (ASX:ARE), which has fallen 72 per cent. The company has suffered operational difficulties at its Torrens gold and copper project.
Dacian Gold (ASX:DCN) is another laggard. While it has rallied from year-record lows, it was hit by a production downgrade earlier in 2019.