Gold prices have rallied significantly this year and have hit record-breaking levels due to the global economic uncertainties. When there is turmoil in the markets, investors generally look for safer investments. Gold remains one of the most popular ones. Hence it is no surprise that gold prices have kept going up. However, in such a situation, investors can often take advantage of gold mining stocks.
Recent reports suggest that the interim pause for gold’s 2019 rally could just be a calm before the storm. Prices for gold and silver remain in a sideways trend during the last month of the year. However, precious metals miners are actually trending up. Here is a look at three gold stocks that investors have been watching ahead of the new year.
Gold Stocks To Watch: Yamana Gold (AUY)
The first gold stock to watch is that of Yamana Gold Inc. (AUY Stock Report). It has emerged one of the better performing gold stocks this year. The company is well known for being one of the best dividend payers in the market and recently, Yamana boosted it further.
After increasing its dividend payout by as much as 100% in Q3 2019, the company raised it by 5 cents recently. That works out to a rise of a further 25%. That announcement resulted in a 1.3% rise in the stock price on Monday.
Traders have mostly seen a range-bound trade since August. Though there have been short-term trade opportunities, the general trend is sideways. However, it should be noted that since the start of the year, AUY stock has managed to run up big. At certain points, the gold stock has managed to pop over 50% from its early January levels. Considering the current prices for gold and its increased dividend, what will 2020 look like for Yamana?
Gold Stocks To Watch: Pretium Resources (PVG)
The other gold stock that has been in the news lately is Pretium Resources Inc (PVG Stock Report). Earlier on in December, the company announced that it has successfully paid off the last $20 million tranches that needed to be paid off as part of the Offtake Repurchase Agreement.
The final payment allowed the company to purchase the Offtake Repurchase Agreement in its entirety and due to that, all aspects of the construction finance package from 2015 have now been completed. Earlier in 2019, Pretium had a rough time as the stock managed to climb as high as $13.83 after starting the year around $8.50.
However, it gave back most of those gains in October. This came following the company’s report that it missed earnings estimates for the quarter. Despite this drop, PVG stock has managed to steadily recover over the last few weeks.
Gold Stocks To Watch: Alamos Gold (AGI)
Alamos Gold Inc (AGI Stock Report) has emerged as another interesting gold-stock over the past few days. On December 12, the company provided its production and operating projections. The company revealed that it is on track to meet its production and costs projections for the full year 2019.
In 2020, Alamos expects to produce in the range of 480000 to 520000 ounces of gold, which is lower than 2019 production. The lower projection is due to lower expected production from one of the facilities. However, given the price of gold at the moment, it may not be a massive hit to the bottom line should prices remain at or above current levels.
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We’ve seen this over the last few months too. Numerous gold mining stocks see lower production but due to the fact that gold prices are high, revenues come in stronger. Will this be the case with Alamos?
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