Shares of GT GOLD (08299) surged over 8% in the afternoon session, with the stock up 8.77% at HK$0.31 as of press time, on a turnover of HK$18.08 million. The World Gold Council's Q2 data shows robust central bank gold purchases, with a net quarterly increase of 289 tonnes, up 62% year-on-year and a significant rebound from the previous quarter, indicating that the de-dollarization narrative has not been interrupted by gold price adjustments. Notably, the People's Bank of China has increased its gold reserves for 19 consecutive months, and developing economies still have ample room for further purchases. Changjiang Securities noted that the central bank buying factor now accounts for over 60% of the explanatory power for gold price fluctuations.
Significantly, GT GOLD's acquisition of the Ningxia Gold Mine was officially completed on June 29, with the two mineral processing plants having a combined design capacity of 1,500 tonnes per day and a potential capacity of 2,000 tonnes per day. Although the completion of technical upgrades and the start of trial operations for the acquired assets will involve a ramp-up process, sustained substantial growth is expected, and the company's production will transition from a "single mine" to a "multi-point" operational model.
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