Don't Look Now, But Precious Metals Stocks Are Skyrocketing

Precious metal stocks were surging on Thursday, while the Dow Jones index was lower by nearly 200 points.

Investors and traders were likely encouraged by M&A activity in the sector as Franco-Nevada Corporation (NYSE: FNV) acquired Glencore PLC's precious metals stream for $500 million.

Franco-Nevada noted that the deal is expected to be immediately accretive to its earnings as the company expects 60,000 to 70,000 gold equivalent ounces applicable to deliveries from the stream in 2016.

Investors and traders were likely bullish on the sector (or anticipating further M&A activity) following encouraging comments by Franco-Nevada's CEO.

"Following our recent Antamina and Candelaria investments, this is yet another step in strengthening and diversifying Franco-Nevada's portfolio with some of the best mining projects in the world," said David Harquail, President and CEO of Franco-Nevada. "This investment is expected to be immediately accretive and provide our shareholders with gold price optionality over multiple cycles and potential further exploration and expansion upside."

Shares of Franco-Nevada were trading nearly flat shortly after Thursday's opening bell. However, shares of DRDGOLD Ltd. (ADR) (NYSE: DRD) and McEwen Mining Inc (NYSE: MUX) were both higher by more than 7 percent, while shares of Yamana Gold Inc. (NYSE: AUY) and Seabridge Gold, Inc. (NYSE: SA) were each higher by around 5 percent.

Eldorado Gold Corp (NYSE: EGO) and Kinross Gold Corporation (NYSE: KGC) were both outperforming peers as their respective stocks each gained nearly 9 percent.