Dallas, Texas 11/01/2013 (Financialstrend) – In the past couple of weeks, gold mining firms have experienced big gains following the gains the precious metal higher has posted in its price over the past 30 days. As of October 23, the stock was trading at $1350 per ounce up from the lower levels it had plummeted to over the past few months. The expected increase in spending on Gold by the Federal Reserve has been indicated as one of the main reasons for the sudden uptake in the price of gold. Randgold Resources Limited (NASDAQ:GOLD) has also benefited from the broad based rally in the gold stock. It stands fourth in the overall table with respect to companies which have posted the most gains in stock price over the past week. Agnico-Eagle Mines and IAMGOLD Corporation lead the bunch with a 18% and 5.7% increase in market value followed by Eldorado Gold and Randgold with 5% and 4% increase respectively.
The strong rally in the stock has its origin also in the strong fundamentals of the gold mining firm. It has managed to post annual sales of $1.15 billion and net income of $340 million in the same period. Investors in Randgold had also announced in the late September that its huge mining project in Congo had commenced to produce gold well in advance to the earlier stated December ’13 start date. The firm also called out that the ahead of schedule production increase was accomplished with any additional cost outlay. The firm is contemplating upping its production forecast for the year from its current 30,000 ounces of gold to 550,000 ounces. This project in Congo is co owned by Rangold and AngloGold equally.
During trading on October 31, the stock was trading at $73.9 per share down 4.1% from its previous day close of $77.9 per share.