Scotgold Resources Limited (LON: SGZ) share price plunged 6.48% today despite the lack of significant releases from the Scottish gold mining company.
The gold mining company is set to become Scotland’s leading gold producer as it ramps up production at its Cononish gold mine, which has registered higher production revenues than its operational costs for the second month.
Scotgold CEO Phil Day recently explained that the company was keen on squeezing out the last 20% of gold production from its Cononish mine by the end of the year.
The company has attracted attention from all across Scotland. Moreover, it is a source of national pride as Scotland becomes the largest gold producer in the United Kingdom, ahead of England, Northern Ireland, and Wales.
The company is currently prospecting for other mining sites in the country that could rival Cononish cementing Scotland’s position as a leading gold producer.
However, the company has yet to unveil a new mining site with similar potential to the Cononish mine, remaining the only actively producing mine.
From a technical perspective, Scotgold shares fell to the 50-period exponential moving average (EMA) during today’s decline and have held above the level showing that the shares are still in an uptrend.
If the price holds above the indicator, we should get a rebound and a move higher in the coming days. However, a break below the 50-day EMA could indicate the start of a new downtrend.
*This is not investment advice.
Scotgold share price.
Scotgold shares plunged 6.48% to trade at 75.75p, falling from Monday’s closing price of 81p.
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