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 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.