The De Grey Mining Limited (ASX: DEG) share price has been heading south over the course of the past month.
Lately, the depreciation in the price of gold has weakened investor sentiment, causing a sell in the gold miner’s shares.
Since this time last month, De Grey shares have lost around 14% in value, making it one of the worst performers across the sector.
In retrospect, fellow miner, Regis Resources Ltd (ASX: RRL)’s share price has fallen by 3% across the same timeframe.
At the time of writing, De Grey shares are swapping hands for $1.17, down 3.31%.
What’s happened to De Grey shares lately?
A common theme with gold mining companies, the De Grey share price has been sold off following the decline in gold prices.
Traditionally, investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market.
However, with the world slowly moving past COVID-19, and the Russian/Ukrainian war in its second month, it appears investors have regained confidence in the market.
The S&P/ASX 200 Index (ASX: XJO) is up 4.7% in a month, rebounding from its March low of 6,968 points.
This has sent the price of gold to trade around US$1,922 per ounce, down almost 4% since 7 March.
In contrast, when the war was still relatively new, the precious metal soared above the psychological US$2,000 barrier.
As such, De Grey shares were trading at $1.365 at that time.
De Grey share price snapshot
Over the past 12 months, the De Grey share price has repaid relatively flat returns to investors, up 2%.
However, when looking at year to date, its shares have travelled in circles, with a loss of 3% for the period.
On valuation grounds, De Grey commands a market capitalisation of about $1.66 billion, with over 1.4 billion shares on hand.
The post Why has the De Grey share price tumbled 14% in a month? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.
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