GOLD STOCKS NEWS - Gold stocks moved higher as the Market Vectors Gold Mining ETF (GDX) climbed $1.67, or 3.7%, to $46.31 per share. The main catalyst for the rally in gold stocks was a stronger gold price - which reached $1,135, its highest level since January 19. In addition, further positive news from many gold mining companies and emerging gold explorers - such as Newmont Mining (NEM) and Romarco Minerals (R.TSXV) - fueled gains in gold stocks. With today’s rally the GDX is looking to post its fourth straight session of gains, as it too has hit its highest level in over a month.

Gold stocks continue to be in focus this week, largely due to the 19th Annual Global Metals & Mining Conference, hosted by BMO Capital Markets - a division of BMO Nesbitt Burns - from February 28 to March 3 in Hollywood, Florida. Many of the world’s largest gold mining companies and largest gold stocks in the GDX are scheduled to give presentations. Some notable gold companies include Barrick Gold Corp. (ABX), Eurasian Natural Resources (ENRC), Freeport-McMoRan Copper & Gold (FCX), Goldcorp Inc. (GG), Ivanhoe Mines (IVN), Newmont Mining Co. (NEM), and Rio Tinto plc (RIO). In addition, investors have the opportunity to meet executives from approximately 230 mining companies, from over 30 countries across the globe.

Commenting on the gold stocks sector David Haughton, Co-Head of Metals & Mining Research at BMO, stated “Few other sectors have changed as rapidly in recent years. Consolidation has created a truly global industry, with companies investing heavily far from home.“

One of the more notable items at the conference were comments from Richard O’Brien, CEO of Newmont Mining, who stated that the gold mining company is “looking for projects to accelerate production.“ Mr. O’Brien went on to say that Newmont - the largest gold producer in the U.S. and the third largest component of the GDX - is interested in an iron ore project in Africa because of the abundance of quality deposits. As for his view on the gold price, O’Brien expressed his belief that easy monetary policies from central banks around the world will lead to inflation and consequently support the price of gold. However, he cited a drop in jewelry demand and a “leveling off“ in exchange-traded-fund gold demand as potential headwinds for the gold price.

Another noteworthy speaker was Tye Burt, CEO of Canadian-based Kinross Gold (KGC). According to Mr. Burt, Kinross - the fifth largest component in the GDX - has set a gold production target of 1 million ounces per year in its next phase of development. Additionally, the gold mining company discussed its recent sale of half its interest in the Cerro Casale project in Chile for $475 million to Barrick Gold - the world’s largest gold miner.

While gold stocks as a group have experienced considerable gains as of late, this week shares of one particular gold explorer have significantly outperformed the sector. Romarco Minerals (R.TSXV) - which is not a component of the GDX - soared 24% yesterday to C$2.07 on much higher than normal volume after drilling what the company described as “the best hole ever“ at its Haile Gold Mine in South Carolina. The emerging gold explorer, based in Canada, announced that drill hole RC-1724 intercepted 62.5 meters of 9.6 g/t gold and ended in mineralization. Romarco stated that the results illustrated a “significant extension of the Haile mineralization system“ and further upside potential of the property. Subsequently two research firms raised their respective price targets on shares of Romarco Minerals to C$2.50 - previously at C$1.75 at Macquarie Research and C$1.85 at Wellington West.