Dallas, Texas 02/28/2014 (FINANCIALSTRENDS) – AuRico Gold Inc (NYSE:AUQ) is a Toronto-based gold miner which has been seeing some high action on the stock markets. Though the reasons for the same are yet to be established, according to one of the better known investors in basic metals-Malcolm Gissen,the rally is expected to extend well-beyond these lines.
AuRico Gold Inc(NYSE:AUQ) also received much upside from Encompass Fund, it relates to invest made by the gold miners. The analysts at this fund point out that the spate of activities in the sector is definitely forward looking. The first of these is the hostile takeover at one of the spectrum. Similarly there has been innumerable merger as well as jumps in the stock. It is also noted that the hostile-manner of takeovers could well be due to the positive indicators of rise in gold prices in the near future.
AuRico Gold Inc(NYSE:AUQ) it has to be noted is also a preferred stock by Libertas Wealth Management. This is because the creation of the base for this gold mining company has also seen a high breakout, given the bearish resistance as well as the moving averages. Additionally, this fund also holds the opinion that if such movement were to spread to Franco-Nevada, over and above that of AuRico Gold, there is further action.
AuRico Gold Inc(NYSE:AUQ) is also highly recommended by the likes of Gissen. The suggestion is that other mining companies such as Primero Mining, besides GoldCorp also make meaningful buy.
Meanwhile, AuRico Gold Inc(NYSE:AUQ) had in its 2014 output mentioned that it was screening the output and attempting to decrease the Capex. It has mentioned that the production in gold has dropped and will vary from 210 to 240 ounces of gold. The year on year increase is slated to be at 25%, due to the increase in production at the Young-Davidson mine.