A small rebound in the gold price favours gold mining equities amid market concerns about Greece's economic plans and disappointing trade data from China. Miners Polymetal (POLY), Hochschild Mining (HOC) and Centamin (CEY) dominate the FTSE leaderboard with circa 3% to 7% share price gains.
Lagging its peer group is Randgold Resources (RRS), up 'only' 1.5% to £53.90 as its fourth quarter results are weaker than expected, and its guidance for capital expenditure and general administrative costs are higher than previously thought. The West African miner produced 287,000 ounces of gold in its Q4 period, just under 10% below analyst forecasts. That's down to repairs, power instability and lower ore grades mined at its Loulo Gounkoto project in Mali.
Gold is presently trading at $1,242 per ounce, which represents a 0.7% increase on last Friday's close and a 1.5% gain on a 30-day basis. The precious metal took a tumble last week on strong jobs data in the US which sent the US dollar soaring. The currency and commodity have historically moved in opposite directions.
Among the small cap gold stocks, Aureus Mining (AUE:AIM) falls 8.2% to 19.5p after revealing a small delay to starting its New Liberty mine in Liberia will cost the business $18 million. To help strengthen its finances Aureus has raised $15.3 million including a placing at 18p – a 15% discount to last Friday's market close.