Glittering brightly in investors’ eyes, shares of Centerra Gold (CGAU 8.96%) are soaring — again — today. The gold mining stock ripped higher yesterday as investors reacted to the election results in Turkey, while today, the market is motivated to pick up shares after the company received an important environmental approval.
But that’s not all. An analyst’s bullish take on the stock is also helping to push the stock higher.
Centerra Gold’s stock is up 8% as of 12:07 p.m. ET, having come down from its earlier rise of 15.2%.
Centerra Gold announced this morning that the Turkish Ministry of Environment has approved the company’s amended Environmental Impact Assessment for the Oksut Mine in Turkey. Having received this approval, Centerra Gold expects to resume full operations at the gold mine in the next few weeks.
After detecting mercury in an area where the gold is processed in March 2022, Centerra Gold suspended gold dore bar production.
Investors found another nugget of good news in the form of a more positive outlook on Centerra Gold’s stock. Brian MacArthur, an analyst at Raymond James, upgraded Centerra Gold’s stock to outperform from market perform.
With clearance to resume gold dore bar production at Oksut, Centerra Gold is, understandably, looking more lustrous in investors’ eyes. Successful operations at the mine are important to the company’s success.
In the first quarter of 2023, for example, the company largely attributed its – $106 million in free cash flow to the suspension of operations at Oksut. While an investment in Centerra Gold appears less risky now, investors will want to dig deeper to see if this is the right gold investment for them, considering the wide variety of gold mining investments available.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Centerra Gold. The Motley Fool has a disclosure policy.