These 4 Gold Stocks Have Turned Heads This Month; Are You Watching?
Gold stocks pushed higher on Friday as more questions than answers came about before the weekend. Though markets opened higher, they didn’t continue. For much of the January 17th trading session, broader sector stocks in the S&P traded relatively sideways.
But when it came to the gold sector, we saw a number of these mining stocks jump. Weak GDP Growth that hit China and India helped boost gold prices, on the whole, suggesting that the market may be ready to trend once again.
During 2019 we saw a hotbed in gold for mergers and acquisitions. This included Barrick Gold’s merger with Randgold as well as Goldcorp’s deal with Newmont. There was also a constant flow of strategic investments and joint ventures that saw some of the biggest miners investing in junior gold stocks via option agreements.
Essentially, last year marked a return to levels the gold hasn’t seen in nearly a decade. So as this is the case and gold is back on the rise, it may be time to take a much closer look at some gold stocks to watch.
Best Gold Stocks To Watch: Gold Fields Limited
After pulling back to 2020 lows of under $6, Gold Fields (GFI – Free Report) has begun to turn around for the time being. Over the last week, we’ve seen the gold stock jump from around $5.92 to highs of nearly $6.30 on Friday. The biggest day GFI stock had was on January 17 as far as intra-day moves are concerned.
Asanko Gold announced results from the 4th quarter as well as its full-year 2019 from the Asanko Gold Mine (AGM). This mine is a 50:50 joint venture with Gold Fields. Results showed record proceeds of $96.8 million generated from the sale of 66,095 ounces of gold. The average realized price came in at $1,465 per ounce.
“2019 was a pivotal year for the Asanko Gold Mine as it transitioned from a significant capital investment phase to generating free cash flow in the latter part of the year,” said Greg McCunn, Chief Executive Officer of Asanko.
Also, keep in mind Gold Fields’ performance over the last 16 months or so. Since that time, this gold stock has managed to climb from lows of $2.20 to highs of $6.83. This week, shares traded above $6.20.
Best Gold Stocks To Watch: Skeena Resources Limited
Next, Skeena Resources Limited (SKE – Free Report) (SKREF) has seen an explosive rally over the last 4 months. The biggest move came after the company announced additional gold-silver drill results from the 2019 phase 1 surface drilling program at the Eskay Creek project. Since this is in a prolific gold producing area, British Columbia’s Golden Triangle, results showed favorable results.
Paul Geddes, the company’s vice-president of exploration and resource development said, “We are also quite encouraged by the improved mineralization widths and gold-silver grades as we infill and upgrade the inferred resources. The 2020 mandate to organically grow the current resource base at Eskay Creek will involve the allocation of approximately 30 percent of the current drill budget to exploratory stepout drilling.”
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Needless to say, shares of Skeena have taken off. In fact, this week the gold stock managed to hit new 52-week highs. Can the trend continue especially considering the company expects to begin the ground-based 2020 phase 1 infill and exploration drilling program in February?
Best Gold Stocks To Watch: Platinum Group Metals Ltd.
This week Platinum Group Metals Ltd. (PLG – Free Report) also came out with big news. Before we get into that, let’s discuss further how Platinum Group has performed so far. It should be noted that shares of the stock have rallied sharply from the end of December through January 17. The move took PLG from $1.34 to highs of $2.87 this week.
That 114% move came after prices of leading metals surged at the end of 2019. However, in addition, the company saw an even bigger move after what it announced this past week. Palladium reported its fiscal Q1 update and gave its outlook for the rest of 2020. Despite posting a net loss compared to positive earnings last year, the company said it looks to FY20 with “an optimistic outlook and renewed enthusiasm.”
The company is focused on advancing its Waterberg Project. According to Platinum Group, “The Waterberg DFS projects a fully mechanized, shallow, decline access palladium, platinum, gold and rhodium (“4E”) mine at an annual production rate of 420,000 4E ounces and a 45-year mine life.”
Best Gold Stocks To Watch: Comstock Mining Inc. (LODE)
This week Comstock Mining Inc. (LODE – Free Report) continued its multi-week breakout move that began toward the end of 2019. The gold stock marked a new high of $0.75. This level was one it hadn’t seen since August of last year.
What’s helped push LODE stock higher in 2020? The company provided a strategic update discussing its objectives for the new year. Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our realignment and transformation has repositioned the Company to first unlock unrealized shareholder value and then create and deliver new value from precious-metal-based innovations and developments, including our Dayton resource and the MCU joint venture.”
The company said it has also agreed to sell two properties in Silver Springs, Nev. This was in addition to more than 200 acre-feet of water rights, for just over $10 million.
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