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Australian mining company shares rose 53% thanks to GameStop’s craze

SINGAPORE: Shares of Australian nickel and cobalt explorer GME Resources jumped as much as 53% on Thursday, driven by the apparent similarity of its stock ticker symbol to its beloved US retail investor GameStop.

GME Resources closed up 13% at 8.5 Australian cents, or a one-cent gain for the day, giving up most of its four-cent gain in early trade, when it reached A $ 0.115. It rose 14% on Wednesday.

“There are people who buy stocks for the sake of laughs and laughter, just because of the ticker symbol,” said market analyst Kyle Roda of IG Markets, a brokerage in Melbourne.

He said, “Everything is trapped in this GameStop dynamic.”

“It’s not about the company and has absolutely nothing to do with this crazy phenomenon that we’re seeing at the moment as these Redditers are looking to merge into these stocks and play with the market a little bit for their own entertainment.”

Shares of US video game retailer GameStop have risen nearly 17 times since Jan.12, as small investors, who operate on social media, have forced professional sellers to abandon their positions with heavy losses.

A GME Resources spokesman was not immediately available for comment. However, managing director Peter Sullivan told the Sydney Morning Herald that the surge had taken him by surprise.

“When I opened my stock tracking app and saw that it was at 9.4 cents, I was shocked,” he told the newspaper. “I just started, and I thought, ‘Well what’s going on here? Is there something in my company that I don’t know?'”

“Ultimately, my nephew, who works in Sydney, told us it was all about speculation about the GME,” he said. “I had hoped to be able to say it is about world-class nickel projects.”

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