4 Mining & Gold Stocks To Watch Before February
Though markets were a bit mixed on Tuesday, it didn’t hold back some mining stocks from heading higher to start the week. In general, after falling during the early morning session, gold ETFs like the SPDR Gold Shares ETF (GLD – ETF Report) made a comeback. Continued global uncertainty stemming from slowing growth projections from the IMF have investors cautious.
“Market sentiment has been boosted by tentative signs that manufacturing activity and global trade are bottoming out, a broad-based shift toward accommodative monetary policy, intermittent favorable news on US-China trade negotiations, and diminished fears of a no-deal Brexit,” the IMF wrote in its most recent World Economic Outlook.
Furthermore, in the US, one of the world’s strongest economies could be in for a rude awakening as well. The stimulus from the 2017 GOP tax law runs out this year. Pair this with the likelihood of fewer share buybacks and lessening tariffs should trade-talks persist, and this could be a perfect storm for something that might see investors flocking for safer havens.
But, in the meantime, stocks are still in play as earnings season has shown consistent beats across the board so far. With this in mind, are some mining stocks set to see new highs in the near term or will they slide back to pre-2020 levels?
Mining Stocks To Buy [or avoid]: Barrick Gold
This week Barrick Gold (ABX – Stock Report)(GOLD) saw shares continue its 1-week uptrend. Like most gold stocks, Barrick shares reached 2020 highs during the first week of the year then pulled back. The decline in price saw shares drop to lows of $17.26 last week.
Following this dip, Barrick stock has maintained a consistent uptrend ever since. In fact, on Tuesday the gold stock reached highs of $18.36 during after-market trading. Preliminary performance shows Barrick’s gold production at the upper end of guidance. Copper production shows above guidance ranges.
The formal results will be delivered on February 12 before the market open. There will also be a conference call to follow. So, keep this date in mind if Barrick is on your list of gold stocks right now.
Mining Stocks To Buy [or avoid]: McEwen Mining Inc.
Next on this list of mining stocks, McEwen Mining Inc. (MUX – Stock Report) saw a similar trend at the beginning of the year. Shares hit highs of $1.35 before pulling into lows of $1.14. This week saw the stock trading slightly higher at highs of $1.20 for now.
Last week the company reported consolidated production for the full year of 2019. These figures came in at 134,316 gold ounces and 3,365,846 silver ounces, or 174,420 gold equivalent ounces.
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“After issuing two disappointing reductions in production guidance we finally achieved our guidance. The problems that plagued us in 2019 were largely unique events that will not be reoccurring. Exploration will continue to be a key focus at Stock West, Grey Fox, Black Fox and Gold Bar, where we see the potential to create the greatest near-term value.” Rob McEwen, Chairman and Chief Owner. Can shares continue to recover or will this slide continue in January?
Mining Stocks To Buy [or avoid]: K92 Mining Inc.
Finally, K92 Mining Inc. (KNT – Stock Report) saw shares extend gains after a near-2 month rally that began in November. This week the company released a Stage 2 expansion update at its Kainantu Gold Mine in Papua New Guinea.
John Lewins, K92 Chief Executive Officer and Director, stated, “The Company is moving forward rapidly with the Kora Expansion Project expected to significantly increase throughput, achieving 400,000 tpa annualized process plant run-rate by the end of 2020. In Q4 2019, Kainantu achieved record material movement rates of 120,000 t, an increase from under 60,000 in Q1 2019; and is being further bolstered by multiple positive developments including ongoing expansion to the mining fleet; the commencement of higher productivity long hole stoping in Q1 2020, and; the completion of key infrastructure projects in the second half of 2019…While 2019 was very much a transformational year for K92, we expect 2020 to build on this and enable our Company to move towards the next level.”
This comes just a few weeks after K92 reported record production from the mine in the 4th quarter. This included 23,096 oz of gold, 216,656 lbs copper and 5,243 oz silver for a total of 23,646 gold equivalent oz. Furthermore, the production from 2019 in its entirety was a record for the company. The came to 79,838 oz of gold, 951,792 lbs copper and 22,984 oz silver for a total of 82,256 AuEq oz, representing a year-over-year increase of 74%.
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