What: Gold mining stocks have continued to be heavily sold off in recent days with a number of smaller producers hitting new 52-week lows.
So what: The spot price of the precious metal appears to have steadied just under the US$1,300 per ounce level after a volatile 12-month period. Despite a relative calm in the gold price over the past few months, miners including Kingsgate Consolidated Limited (ASX: KCN) St. Barbara Limited (ASX: SBM) and Regis Resources Limited (ASX: RRL) have all seen their shares sold down. This situation may have created a buying opportunity for investors if they believe these miners have been oversold.
Now what: While there are certain operational issues which partially explain the sell-off particularly in Regis' share price, what matters in the long-term is a) the cost of production for these miners, b) the gold price and c) the volume and longevity of production at their respective mine sites.
With the gold price appearing to have stabilised, now may be an opportunity for gold investors to do some prospecting of their own.
