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Tambourah Metals (ASX:TMB) has shown the market on Wednesday the gold thematic isn’t going anywhere as long as prices for the yellow metal continue to stay at record highs – and with no real reason coming from geopolitics to swap out of safe havens – Tambourah is the latest explorer to soar in a single day trade with Wednesday morning session gains up +156% to 10.5cps.
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Of course, high grades of gold help, too. Key to Tambourah’s action on Wednesday is its latest results from follow-up drilling at its Beatty Park South asset, where from 20m depth the company retrieved a 20m wide drill intersection grading at 18g/t.
With far lower grades than those currently economically feasible, the strong reaction (~$5M worth of trades at time of writing) is based on an obvious calculus. Also helping matters is that the company reported these grades far surpass expectations from historical data, as well as previous drill runs executed by TMB.
This +150% climb could be what puts Tambourah back on the map after listing in mid-2021 at around 20cps. Ignoring a four-month period in 2023 where the stock briefly hit 30cps (then plummeted back to 10cps), the stock has long been trying to get back to its float price ever since it firmly dipped below 20cps around June 2022.
A gravity-defying run for gold prices over the last 18 months, clearly, has been enough to change that, in tandem with higher-than-expected grades (at relatively shallow depths).
In that light, today’s drill data puts YTD returns up +400% and 1W returns up +115%. To be sure, there’s no shortage of small explorers right now shrugging off a broader, somewhat risk-on XJO given plenty of momentum coming from gold, antimony, U.S.-facing rare earth exposure, and tech metals (which has made metals recyclers hot-to-trot also).
TMB last traded at 10.5cps.
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