If I’d put $500 in this ASX 200 gold stock two years ago, I’d have $1,510 today

ASX 200 gold stock Capricorn Metals Ltd (ASX: CMM) is trading in the green again on Wednesday morning, continuing on a run of increases over the past seven weeks.

At the time of writing, the ASX 200 gold stock’s shares are 0.82% higher at $14.10 a piece.

The latest uptick means the shares have now rebounded 50% from a dip recorded in late March.  

For the year-to-date, Capricorn Metals’ shares are still down 2.8%, but they’re up an impressive 66% from this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.5% at the time of writing and is just over 0.5% lower for the year to date.

So, if I bought $500 of Capricorn Metals shares two years ago, what would they be worth today?

The ASX 200 gold shares have enjoyed a strong rally over the past few years. While the shares have climbed 66% in the past 12 months, they’ve flown a huge 202% higher since May 2024.

That means $500 invested in Capricorn Metals 24 months ago is already worth $1,510. 

What has been driving the ASX 200 gold stock higher?

There have been a few factors driving the gold miner’s share price higher, including a rally in gold prices, strong gold production, and improved investor sentiment.

The price of gold has more than doubled over the past two years, from around US$2,300 per ounce in May 2024 to around US$4,700 per ounce at the time of writing. 

At the same time, Capricorn Metals has delivered consistently strong production and cash flow results. 

Most recently, the gold miner posted its March quarter update, in late April, where it revealed strong gold production, a record quarterly cash flow, and a maiden 5 cent per share fully-franked dividend payment to shareholders.

The ASX 200 gold miner also confirmed that 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 also said it is 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). 

It looks like investors are pleased with the latest announcement and have flocked to the stock.

Can the Capricorn Metals share price keep climbing higher?

According to TradingView data, it looks like we can expect plenty more out of the gold miner’s shares over the next 12 months.

All nine analysts have a consensus buy rating on the ASX 200 gold stock, with the average $18.22 target price representing a potential 29% upside at the time of writing.

Meanwhile, some expect the shares to fly another 70% to $24. 

The post If I’d put $500 in this ASX 200 gold stock two years ago, I’d have $1,510 today appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.