Trading of Oceana Gold shares on the Australian stock exchange has been at almost double average volumes on each of the past 10 days as New Zealand's largest gold miner enjoys record global spot prices.
Shares in triple-listed Oceana have been trading in excess of a million a day in Australia for most of the past 10 days, as opposed to about 500,000 a day previously.
During the past three days, the price has ranged between $2.70 on Friday and $2.12 on Monday before rising to $2.35 in afternoon trading yesterday.
The Australian stock exchange requested a "please explain" from Oceana on Monday, to which it replied it had no information regarding the increased trading and higher share price.
However, Oceana corporate secretary Matthew Salthouse said record global prices for gold and Oceana's recent upgrading of its estimated gold resources at its Macraes site in East Otago may have had a "favourable impact" on "investor sentiment".
Craigs Investment Partners broker Peter McIntyre said a combination of recent record global spot prices for gold, having eased from $US1195.82 ($NZ1664) during the weekend to around $US1180 yesterday, and Oceana's upgraded resource estimate underpinned the increased share trading and price.
Mr McIntyre said New Zealand share volumes had been relatively light, but in Australia Oceana volumes were "consistently trading in excess of a 1 million" per day.
"The [share] is still showing a lot of volatility," Mr McIntyre said.
Positive investor sentiment has recently affected gold and gold producer stocks, which provide a traditional hedge against inflation.
The reserve banks of several countries have opted to buy large gold reserves in preferance to major world currencies, many of which have been weakening.
Spot gold prices this year have rallied about 35% to the recent records, with several analysts predicting it will shortly surpass $US1200 per ounce.
