Why is the Northern Star share price more green than gold on Friday?

It’s proving a good day so far for the gold miner, despite the price of the yellow metal falling.

| More on:
a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 is rebounding today
  • But some ASX gold miners like Northern Star are bouncing even higher
  • Perhaps news that Twiggy is looking for gold is helping...

After its merger with Saracen Mineral Holdings last year, Northern Star Resources Ltd (ASX: NST) is now one of the largest listed ASX gold miners on the share market. But that hasn’t saved Nothern Star shares from a rough ride this week. Since last Friday’s close, the Northern Star share price has fallen by around 11%.

Despite this, today has seen the gold miner rebound slightly. The Northern Star share price is currently up 3.8% at $7.10.

That comes after Northern Star hit another new 52-week low this morning soon after market open. The company dropped as low as $6.79 today before shooting back up. A rough ride indeed.

But with the Northern Star share price rebounding today, and by far more than the broader S&P/ASX 200 Index (ASX: XJO) too, you might expect the gold price to be rising.

But you’d be wrong. The price of gold has actually fallen over the past 24 hours or so. The yellow metal was asking US$1,825 an ounce yesterday. But today, it has dropped to US$1,806 a the time of writing.

What’s going on with the Northern Star share price today?

The rising Northern Star share price could be a byproduct of the news we heard this morning about a fellow ASX gold miner.

As my Fool colleague James covered earlier today, there are reports that mining billionaire and CEO of Fortescue Metals Group Limited (ASX: FMG), Andrew Forrest, was seeking to acquire a 15% stake in gold miner Regis Resources Limited (ASX: RRL). Twiggy was apparently happy to buy this stake at $1.48 per share.

The Regis share price closed at $1.30 on Thursday but has rocketed almost 11% so far today to $1.44, presumably on this news. However, The Australian has since reported Forrest has abandoned the plan after failing to aquire the stake for $168 million.

We also see other ASX gold miners such as Evolution Mining Ltd (ASX: EVN) rising today as well, up 2.5%.

So, this vote of confidence for a fellow ASX gold miner from one of Australia’s richest people could be flowing through to the Northern Star share price.

Northern Star has a market capitalisation of $8.04 billion, with a dividend yield of 2.77%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

a man sits in unhappy contemplation staring at his computer on his desk in a home environment, propping his chin on his hand.
Resources Shares

The ASX 200 share Firetrail just bought after brutal sell-off

If a stock has lost one-third of its value over the last four months, would you be courageous enough to…

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.

Why has the Northern Star share price climbed 20% in a month?

What's caused the gold miner's shares to shine lately.

Read more »

St Barbara share price Minder underground looks excited a he holds a nugget of gold he has discovered.
Materials Shares

Guess which ASX mining share just exploded 30% on a new gold discovery

We take a look at what this explorer discovered.

Read more »

rising gold share price represented by a green arrow on piles of gold block

Why is the Evolution share price up 13% in a month?

Evolution Mining shares have been continuing to tread higher in August.

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.

Why is ASX 200 gold share St Barbara sliding 10% today?

St Barbara is currently the worst performer among ASX 200 shares today.

Read more »

A woman blowing gold glitter out of her hands with a joyous smile on her face.
Share Gainers

Guess which ASX mining share is rocketing 30% on a ‘significant new discovery’

Meeka Metals has set off in vertical fashion today.

Read more »

Gold nuggets with a share price chart.

Down 20% so far in 2022, is the Newcrest share price a bargain buy or a falling knife?

Newcrest may or may not be at a turning point.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,

3 ASX gold shares surging ahead on Friday

It's a good day on the ASX for gold shares.

Read more »