One of the biggest stories from the world of finance this year has been a steady rise in the price of gold. It was owing to uncertainties in the markets all across the globe. The biggest reason behind that has been the trade war between the United States and China.
The clamor to protect capital made investors invest in gold. That resulted in a remarkable rally. However, the rise in the price of gold can also have a positive effect on gold stocks and here is a look at three gold stocks that could be considered by investors.
Gold Stocks to Buy [or sell] #1 Asanko Gold
One of the gold stocks that could be put into investors’ watch lists is Asanko Gold Inc (NYSE:AKG). Earlier on in December, the company received the concluding payment of $10 million from Gold Fields Limited with regards to the end of a joint venture agreement.
The payment further bolstered the company’s balance sheet. “The combination of these two transactions has significantly bolstered Asanko’s balance sheet and we anticipate finishing the year with approximately $35 million in cash and receivables, with no debt,” said Greg McCunn, Chief Executive Officer.
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“We are pleased to see a return of our invested capital following a significant multi-year period of capital investment at the AGM. With improved confidence in the free cash flow generation of the mine together with our balanced approach to capital allocation, we have commenced returning a portion of excess corporate cash to shareholders through a normal course issuer bid which we announced in November.”
Gold Stocks to Buy [or sell] #2 Gold Resource Corporation
Another gold stock that is worth mentioning is Gold Resource Corporation (NYSE:GORO). It made a significant announcement back on December 26. The company reported that its monthly dividend is going to be one-third of a cent for each common share.
The payment is going to be made out on January 23, 2020, for all shareholders who as of January 13, 2020. Since the price of gold continues to rise and GORO stock has maintained a similar trend, it could be worth watching in the near term. So, it is worthwhile to keep an eye on the stock. According to Gold Resources, it “has returned $113 million to its shareholders in consecutive monthly dividends since July 2010.”
Gold Stocks to Buy [or sell] #3 Alamos Gold
The other gold stock that could be tracked at this point is Alamos Gold Inc (NYSE:AGI), which has managed to generate impressive gains since the middle of December.
Earlier on in December, the company had announced that its revolving credit facility has been raised to $500 million from $400 million. Since then the stock has rallied by as much as 15%. Though capital raises tend to become burdens to the market, the favorable price of gold makes way for companies to raise money to expand operations.
“The increase in our facility on more attractive terms is a reflection of the increased scale of Alamos as well as our strong operating and financial outlook. Combined with our existing cash, this further strengthens our financial flexibility with no debt and nearly US$700 million of available liquidity,” said Jamie Porter, Chief Financial Officer.
Question For Readers: After looking at this list, which of these gold stocks (if any) would you buy or sell in January 2020?
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