Dallas, Texas 10/18/2013 (Financialstrend) – The small cap gold producer Allied Nevada Gold Corp. (NYSEMKT:ANV) stock was on the move during premarket trading yesterday. It had zoomed up 6% over its previous day close. The strong rally can be attributed to two reasons. The first reason is that ANV benefited from “the across the board” rally that gold mining participated in yesterday. Analysts believe that the gold futures and the mining stock are relieved that the temporary postponement of the budget impasse till February will force Fed not to tinker with its asset purchase program for now. The fact that under pressure gold futures stock gained close to 3.2% yesterday underscores that sentiment played a major part in pushing up the price of Allied Nevada stock.
The second important reason could be the strong 3Q operational and production results that were announced by the $400 million market capitalized gold producer. Its Hycroft mine churned out a record setting 52.1 K ounces of gold and equally impressive 184 K ounces of silver from operations in 3Q. The company also recorded impressive jump in its sales numbers. It was able to find buyers for 52.7 K ounces of gold and 184 K ounces of silver during 3Q. It also updated its production guidance for the entire year. The gold and silver mining firm hopes to process gold in the range of 175 to 200 K ounces and 0.9 to 1.1 million ounces of silver for the entire year ending 2013.
Randy Buffington who is the President and CEO of Allied Nevada expressed his happiness and his vision for the mining firm by saying that, “I am very pleased with the progress being made at site by the new operating team. While I fully expected them to turn the operation around, I am impressed with the speed and efficiency with which they have been able to improve production.”