Brutus Mining Keeps Rallying on Gold Price Rebound

Brutus Mining (CN:BRU) continued its strong run on the Canadian Securities Exchange (CSE), closing near 87 cents after rising about seven cents. The gains came as gold prices rebounded and materials stocks led the Toronto market, but with only 6,500 shares changing hands, a few buyers were enough to push the price higher.

The backdrop was supportive for resource names, with December gold rising about US$35 to roughly US$4,203 an ounce. The gold and materials subgroups were among the best performers on the TSX, despite the S&P/TSX Composite slipping 29.59 points to 35,460.27.

Brutus' run has been impressive, with the stock more than doubling from its lows of around 30 cents in September and hitting an all-time high of about 95 cents on Monday. The company's recent announcements have contributed to this increase, including a geochemical survey at its CW copper project and two non-brokered private placements for up to $3 million.

As a young company with no revenue, Brutus is highly sensitive to news flow, financing activity, and swings in metal prices. The closing of the private placements and the results of the geochemical survey will be closely watched by investors, as well as trading volume which can exaggerate price moves in either direction.