Profit-taking and a weakening of global gold prices are likely behind the 10% decline in Oceana Gold Corp shares.
Until now, the shares have enjoyed a stellar run.
During the past year, shares in East Otago Oceana rose from $1.03 to a high of $4.85 on June 21, coinciding with the spot gold high of $US1265 ($NZ1781) on the same day.
Oceana's shares eased 10% to $3.84 yesterday, while spot gold was down 6.7% to $US1180 yesterday from the June 21 high.
Craigs Investment Partners broker Peter McIntyre said Oceana had "been an outstanding performer" during the past year, with only good news hitting the markets, in its efforts to extend the lifetime of its Macraes open-cast and underground mining by boosting exploration.
However, Mr McIntyre believed the high share price prompted some shareholders to take the opportunity to take profits, in combination with falling sentiment over the weakening global spot price.
Oceana has four times this year increased its estimates of gold resources, or released information on positive exploration results, bought back its gold hedge contracts for more than $100 million, and upped exploration spending at Reefton on the West Coast to $6.2 million to consider an underground mine proposal.
Oceana's half-year financial report is due out at the end of next week.
