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Sometimes the market works in mysterious ways, and that’s evident with shares in Cazaly Resources (ASX:CAZ) on Monday as the company has seen its share price soar on the back of a perhaps unexpected injection of liquidity – despite having released no news, and no obvious support coming from overnight gold prices.
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(Gold prices, in case you’ve not been paying attention, have taken a momentary breather from their year-long-plus upward run, which it’s worth noting occurred right ahead of this week’s planned Trump-Xi meeting.)
Gold prices would be the most likely organic catalyst, one would think, given that the projects section of Cazaly’s website currently uses its WA-based Goongarrie gold project as a banner, suggesting that’s for now the company’s flagship. Cazaly also has assets in Canada and Namibia.
Of course, there’s nothing that’s happened on gold markets overnight suggesting such a catalyst – and yet, the stock price has risen +30% on Monday. Cazaly has a market cap of just $20M and just south of 500M shares on issue.
There’s no implication here that anything spurious is going on – this could, for instance, simply be an insto buying in – but the move was noted by HotCopper users and elsewhere online. (CAZ has made it into ADVFN‘s Movers board for Monday.)
For its part, this brings one-year returns for Cazaly to +173%, with gains of nearly +40% over the last month. On October 10, the company reported wrapping up aircore drilling underneath historical workings on-site at its Goongarrie project, leading one to wonder whether or not Cazaly’s currently a leaky ship as assay results are likely due in the foreseeable future.
CAZ last traded at 4cps.
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