Evaluating gold miners is tricky, because some of them hedge production. It is possible that a severe rise in price can cause them to lose money due to overhedging or mark2market accounting. The REASON for the price rise would also come into account. If due to a currency issue, it would depend where the mines are located and also other political considerations that would be in play in order to cause a $300 rise in the first place. Inflation can raise their cost of production as much or more than the price rise. Threats of nationalization or civil unrest could be major factors. Lots more issues as well.

value of miner’s reserves would go up

how to evaluate gold miners? One is market cap per ounce. The market capitalization of a company is the number of shares times its price. You divide that by its ounces of production and its ounces of proven and probable reserves, and you see how the company’s data compares to the industry’s weighted averages.

Second, we look at operating cash flow multiples. Take the difference
between the gold price and the cash cost to produce an ounce, multiply that by the company’s production per year, and you get operating cash flow. Divide that into its market capitalization and you get its operating cash flow multiple. We look at that this much the same as one looks at earnings per share multiples in other industries.

If people are speculative about stocks such as gold stocks, what could happen is before the market opens they might set higher limited buying orders causing the stock to open higher than the previous days close.

It’s an Interesting question.