Will These Gold Stocks Head higher This Month?
The gold recent rally started in 2019 due to the turmoil in the markets brought about by the United States-China trade war. That seems to be continuing this year as well. However, the rally in the New Year was triggered by the turmoil in the Middle East, which pushed investors to look for safe investments like gold. However, precious metals prices could be setting up for a strong year despite a softer market right now.
The broader markets gained a jaw-dropping 29% last year. This was the second-largest performance since Bill Clinton was President. But certain factors could indicate the possibility of a slower market in 2020. That may bode well for safe havens like gold stocks. According to research firm Bespoke Investment Group, since 1928, the S&P 500 has been able to return 6.6%, on average, in the year following a rally of 20% or more.
Also keep in mind that this is an election year in the U.S., which typically has its own market volatility associated with it. In such a situation, it is worthwhile for investors to consider gold stocks since those stocks often rally in such market conditions. Here is a look at four gold stocks that could be worth putting into the watch list at this point.
Gold Stocks To Watch #1 Golden Star Resources
The first on this list of gold stocks to watch is Golden Star Resources Ltd. (GSC – Stock Report) (GSS). It rose slightly after the company revealed its production report for the fourth quarter and also for the full year. The company revealed that its fourth-quarter production hit 52,000 ounces, which reflects a year on year rise of 4%.
However, on the other hand, the full-year production for the year 2019 slumped to 204,000 ounces, which reflects a 9% drop year on year. The company’s Wassa mine located in Ghana had a particularly good year. Investors could do well to track this stock in the middle of this rally. Furthermore, the company appointed a new Chief Financial Officer, Paul Thomson.
“Paul’s experience in the gold industry in Africa will be invaluable as we work to deliver on the opportunities to continue to grow Golden Star. I would like to express my thanks to André for his continued support and his commitment to remain with the business to affect an orderly hand over of the CFO’s responsibilities to Paul following the release of our 2019 results in February.”Andrew Wray , President and Chief Executive Officer of Golden Star
Gold Stocks To Watch #2: IMC International Mining
Next, IMC International Mining (IMCX – Stock Report) has begun to trend higher this month. On Wednesday, the gold exploration stock inched toward its all-time high but came just shy after hitting highs of $0.36. Furthermore, the stock saw one of its highest trading volume days of the year. The main focus of IMC is on exploring and developing gold assets. Not only does the company look for mining opportunities across the globe, but its current asset could also offer opportunities for gold discovery. IMC’s Bullard Pass property has already shown previous production levels that may justify the company’s stance on developing the site.
District production totals were 614,000 pounds of copper, 3,600 ounces of gold, and 15,000 ounces of silver from 17,000 tons mined that occurred between 1933 and 1956. Furthermore, the company’s leadership team has been involved in some of the biggest deals in the mining space.
For example, CEO, Brian Thurston, was instrumental in the initial exploration, land acquisition and development of Aurelian Resources’ Ecuador. That company was then acquired by Kinross in a $1.2 billion friendly deal. Could this be important considering the fact that M&A activity has picked up in the mining arena?
Gold Stocks To Watch #3: Gold Resource
Additionally, the preliminary production report revealed by Gold Resource Corporation (GORO – Stock Report) has proven to be a source of optimism for the company. In its preliminary report, Gold Resource revealed that in 2019 it had produced 40,318 ounce of gold and 1,732,604 ounces of silver.
The gold production is, in fact, a record level for the company. That is obviously a major positive in the middle of a gold rally. Furthermore, the company’s production levels also met the projections made by the company for the full year. Since the start of the 4th quarter of 2019, shares have climbed 65.5% to date.
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Gold Resource Corporation CEO and President, Mr. Jason Reid stated, “2019 was not only a record gold production year for Gold Resource Corporation, but the Company is well-positioned to substantially increase our gold production profile further in 2020.”
Gold Stocks To Watch #4: Turquoise Hill Resources Ltd.
Turquoise Hill Resources Ltd. (TRQ.TO – Stock Report) (TRQ) announced a new appointment to its board this week. George Burns joins as the companies independent director. If this name sounds familiar, that’s because it is. Burns is the CEO and President of Eldorado Gold (ELD – Stock Report)(EGO) with a 40-year career in the mining industry. He also previously held leadership roles at Centerra Gold as well as Goldcorp.
“George’s extensive mining and construction background in both open pit and underground mines, as well as his experience in working in Mongolia, will add further depth and expertise to our board. We look forward to working with George.”Turquoise Hill Chairman Peter Gillin
Previous to this, the company released its quarterly and full-year financials. Full-year gold production of 241,840 ounces vs original guidance range of 180,000 – 220,000 ounces. Its full-year mill throughput of 40,777,225 tonnes, an increase of 5% over 2018. Shares were gapping during premarket trading on Thursday.
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