Why has the De Grey share price leapt 36% in a month?

The De Grey Mining Ltd (ASX: DEG) share price has turned a corner since 12 July having bounced from a low of 73.5 cents.

It now rests at $1 per share before the open on Friday, having stretched up 36% in that time.

Comparatively, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has gained around 6.5% in the same time, and the benchmark S&P/ASX 200 Index (ASX: XJO) around 6%.

Series of fortunate events

The company has released 5 price-sensitive updates in the last month of trade, starting with its quarterly cash flow and activities reports on 29 July.

Following on just 4 days later, it posted the slide deck of its presentation at the 2022 Diggers and Dealers conference.

Aside from that, ASX mining shares have also caught a bid over the past month, as explained above.

And how could we forget gold, the beloved yellow metal has spiked 6% from 20 July, after plunging to 52-week lows. The question is, can gold now retrace the losses from its previous high, as seen below?

It would be terrific for the company if it did – on August 1 De Grey announced a “major gold intersection” at its Diucon site extending its previous mineral resource estimate by 200 metres.

Hence with these factors combined it’s been a bullish 30 days of trading for the company’s shares.

Zooming out, and De Grey’s share price has followed a similar trajectory to gold over the past 12 months, all the way up until this point.

Note that it is down almost 17% in that time or more than 16% this year to date.

The post Why has the De Grey share price leapt 36% in a month? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• De Grey share price lifts on ‘major gold intersection’
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Zach Bristow 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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