ASX 200 gold stock Capricorn Metals Ltd (ASX: CMM) flew higher on Tuesday. At the close of the ASX at 4pm, the gold stock was up 9.33% to $13.01 a piece making it the best performer on the S&P/ASX 200 Index (ASX: XJO) for the day.
At one point, just before market close, the shares climbed as high as $13.25 each.
The uptick means the shares have now rebounded 38% from a dip in late-March. For the year-to-date Capricorn Metals' shares are still down 10%, but they're 40% higher than this time last year.
For context, the ASX 200 Index closed the day in the red, down 0.2% and is around 6% higher than 12 months ago.
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Why did Capricorn Metals shares fly higher on Tuesday?
There wasn't any price sensitive news out of the gold miner today to explain the latest price surge, so the increase is likely due to a combination of positive factors causing a rally in investor interest.
The price of gold tumbled on Monday, before rebounding slightly yesterday. As a gold producer, any movement in the gold price is positive for Capricorn Metals' shares. Although it's important to note that the share price of other major large-cap gold producers such as Northern Star Resources (ASX: NST) and Evolution Mining (ASX: EVN), slipped into the red on Tuesday.
Another potential catalyst could be that positive sentiment has flowed on from the company's March-quarter result last week.
Capricorn Metals posted a strong gold production, a record quarterly cash flow, and a maiden 5 cent per share fully-franked dividend payment to shareholders.
The company also said it is on track to meet the upper end of its FY26 production guidance of 115,000 to 125,000 ounces at an All-in-sustaining cost (AISC) of $1,530 to $1,630 per ounce.
Year-to-date gold production totals 93,152 ounces at an AISC of $1,623 per ounce.
Capricorn is also making steady progress on its next phase of growth. Development of the Karlawinda Expansion Project (KEP) is advancing well, and work continues at its Mt Gibson Gold Project (MGGP).
Are the shares a buy, sell or hold?
Following the gold miner's latest update, many analysts have revised their outlook on Capricorn Metals' shares.
Market Index data shows a consensus strong buy rating with a 41% potential upside to $18.46, at the time of writing.
TradingView data shows very similar data, again with a consensus buy rating. Some expect the gold miner's shares to climb 40% to $18.22 but others are more bullish and think the share price could jump another 85% to $24 each.
Whatever the upside over the next 12 months, it looks like Capricorn Metals' shares are at the beginning of a rally.
