Why is this ASX gold stock surging as its peers are on the slide?

Detailed summary

This company is aiming to be one of Australia's next major gold producers. The post Why is this ASX gold stock surging as its peers are on the slide? appeared first on The Motley…

The gold sector is having a down day today, but Minerals 260 Ltd (ASX: MI6) is defying the trend, with its shares piling on more than 8% by early afternoon.

The project developer's shares were the second-best performer among S&P/ASX 200 Index (ASX: XJO) companies, while its peers such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) were trading lower.

The reason is pretty clear. The company has just ticked off a major milestone towards bringing its Bullabulling project in Western Australia into production, by locking in the final funding needed to build it.

Minerals 260 has signed an agreement with a syndicate of tier one banks for $335 million in project finance and another $75 million in working capital.

The banks involved include ANZ Group Holdings Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), and Societe Generale.

The company will now forge on with completing its definitive feasibility study and then look at making a final investment decision in the first quarter of 2027.

It's not hard to see why investors are excited about this ASX gold company.

The prefeasibility study for the Bullabulling mine estimates an all-in sustaining cost of production of $2,627 per ounce of gold, compared with the current gold price in Australian dollars of $5,879.93 per ounce.

This is a very healthy margin and a very competitive cost of production when compared with other producers.

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