Tuesday is shaping up to be a much better day for Gold Road Resources Ltd (ASX: GOR) shares.
The S&P/ASX 200 Index (ASX: XJO) gold stock closed down a painful 18.4% yesterday, ending the day trading for $1.395 a share.
In late morning trade today, Gold Road shares are swapping hands for $1.492 apiece, up 7%.
For some context, the ASX 200 is up 0.6% at this same time.
Here's what's happening with the gold miner.
Gold Road shares crash on quarterly update
Monday was a day to forget for Gold Road shareholders.
As we covered here, the ASX 200 gold producer came under heavy selling pressure after releasing its quarterly production update along with guidance for 2024.
Gold Road is in a 50:50 joint venture with Gruyere Mining Company at the Gruyere Gold Mine, located in Western Australia.
ASX 200 investors were hitting the sell button after gold production levels fell 16% from the prior quarter. That was coupled with a near 15% quarter on quarter increase in the all-in sustaining cost (AISC) to produce the yellow metal. The miner's AISC came in just over its 2023 guidance.
As for 2024, Gold Road shares didn't appear to get a boost from the company's annual production guidance of between 300,000 and 335,000 ounces of gold. Notably, that's significantly below the miner's full-year production guidance for 2023, which fell in the range of 320,000 to 350,000 ounces.
So, why is the ASX 200 gold stock rebounding today?
What's boosting the ASX 200 gold stock?
Gold Road shares look to be getting a lift today following a series of broker upgrades. Judging by today's price action, ASX 200 investors appear to agree that the miner was oversold yesterday.
Among the brokers upgrading the miner tis Goldman Sachs (courtesy of The Australian).
Goldman has raised the miner to a 'neutral' rating with a $1.55 share price target.
Macquarie is also bullish on the ASX 200 gold miner, raising its rating to 'outperform' with a $1.60 price target.
And Jeffries joins the upgrade frenzy, raising its rating to a 'buy' with a $2 price target on its shares.
All three brokers see a significant upside for Gold Road shares in 2024. Jeffries forecast, the most bullish, implies a potential 34% upside from today's levels.
