Sector Update: Southern Arc Adding to Recent Gains, Outpacing Gold Mining Peers
Gold miners are mixed in early Friday trade, with a handful of mid-sized producers trading as much as 8% higher although the overall trend for the sector appears to heading in the opposite direction.
Bullion futures are down another $14 this morning, with the most heavily traded December contract now trading around $1,739 an ounce -- 3.3% below the $1,801 contract high set only Wednesday at the height of market uncertainty. Since that time, the CME Group set new margin requirements for traders in a bid to rein in the sharp rise in gold prices following a surge in activity, including record volumes for gold futures and options on Tuesday with 504,368 contracts traded on Tuesday.
Among TSX-traded issues, Southern Arc Minerals (SA.TO) has been up as much as 9.5% this morning, reaching $1.39 a share before easing in recent minutes. The stock is now up three days in a row, climbing 60% since sinking an inter-day low of 86 cents a share on Tuesday, the day after demonstrators set fire to three rigs at its Mencanggah property in Indonesia and later damaged five other rigs at a nearby site.
Other gainers today include
--Crocodile Gold Corp. (CRK.TO), up 1.6% at 64 cents a share
--CGA Mining Limited (CGA.TO), ahead 1.2% at $2.58 a share, and
--Centamin Egypt Limited (CEE.TO), up more than 3.5% at $1.76 a share.
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