Oceana Gold shares have risen almost 30% during the past fortnight as global spot gold prices hit at least their sixth record high this month.
Since November 10, when Oceana Gold, the country's largest gold producer, announced an estimated more than 40% increase in its gold resource at its Macraes mine in East Otago, its shares have risen steadily from $1.67 to $2.16 yesterday, gaining 8% in yesterday's trading.
Its shares were at a record high of $4.35 in September 2007, shortly after now triple-listed Oceana switched its principal listing to the Toronto stock exchange.
Global spot gold prices on the Comex division of the New York mercantile stock exchange started this month at a record $US1087.45 ($NZ1490) and on Monday night touched a new record $US1165.75, before falling off by about $US5 yesterday.
Craigs Investment Partners broker Peter McIntyre said the combined increased resource estimate and rising gold prices had boosted Oceana's share price, as more investors looked for exposure to gold as a hedge against inflation.
While Oceana remained a "riskier gold play" than investing in some larger Australian gold producers, a continued rise in the price of gold could be expected to increase Oceana's cash flows, he said.
Mr McIntyre said increased revenue could be the prompt for a joint venture partner to come on board to assist financing Oceana's mothballed gold and copper mine development in the northern Philippines, which requires $US185 million to reactivate.
