Why is the Northern Star share price more green than gold on Friday?

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 with the Northern Star share price rebounding today, and by far more than the broader S&P/ASX 200 Index (ASX: XJO) too, you might expect the gold price to be rising.

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.

Northern Star has a market capitalisation of $8.04 billion, with a dividend yield of 2.77%.

The post Why is the Northern Star share price more green than gold on Friday? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Regis Resources jumps, BHP and Rio Tinto drop
• These ASX 200 mining shares are digging a deeper hole on Friday
• Why did the Soul Pattinson share price go backwards in June?
• 5 things to watch on the ASX 200 on Friday
• These were the best performing ASX 200 shares in June

Motley Fool contributor Sebastian Bowen 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.

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