Gold Stocks To Watch As Gold Extends Gains
Gold prices had enjoyed a bit of a rally on Thursday following the coronavirus epidemic in China. Fears grew that it could lead to the closure of factories in the country. However, the rally eased on Friday after it emerged that China is taking adequate measures, and currently, the price of the precious metal is up by 3.6% so far in January.
Spot gold price actually fell by 0.1% and hit $1571.73 an ounce. In such a situation, investors could consider gold stocks. Here is a look at five of those.
Gold Stocks To Watch #1 Caledonia Mining
One gold mining stock that could be tracked by investors at this point is that of Caledonia Mining (CMCL – Free Report), which jumped significantly on Thursday after the company announced its 2019 earnings projections. The company believes that its earnings in 2019 are going to be significantly more than analysts’ estimates.
Caledonia projected earnings per share in the $1.55 to $1.75 range. Earlier it had projected earnings per share in the $0.86 and $1.17. The stock rallied significantly after the projections were announced. Investors looking into the gold mining sector could consider keeping an eye on this stock.
Gold Stocks To Watch #2: IMC International Mining
Over the last week, shares of IMC International Mining (IMCX – Free Report) (IMIMF) has begun trading in the US. What appears to have quietly begun on January 21, has continued on a consistently increasing rate of increase. Shares of IMC International have climbed from $0.25USD to highs of $0.33USD.
This echoes a similar sentiment that the Canadian markets have come accustomed to since the beginning of the month. On January 8, IMC International stock traded around $0.25CAD and has since jumped to highs this week of $0.42CAD so far.
The current focus for the company has been on its Bullard Pass property in Arizona. Not only has the site shown historic production levels, reports have also suggested favorable potential. An Arizona Geological Survey Open-File Report 92-1 that “the mineralogic and structural similarities of the Bullard and Copperstone districts suggest that potential exists for a major gold deposit in the area of the Bullard district.”
Gold Stocks To Watch #3 Kirkland Lake
Another gold stock that could be worth considering is Kirkland Lake (KL – Free Report). Shares jumped over 3.2% on Friday. Kirkland has had a rough time in the market lately even as gold stocks surge amid coronavirus fears. The company’s shares have declined 11% since the beginning of the year. However, that may have started to change on the last day of the month.
Kirkland reported positive news. The company and Detour Gold (DGC – Free Report) completed the previously announced the Kirkland acquisition of all issued and outstanding shares of Detour. This adds to the latest in a string of mergers and acquisitions in the mining industry. Kirkland will pay Detour shareholders $0.4343 of common shares of Kirkland.
Gold Stocks To Watch #4 DRDGOLD
DRDGOLD Ltd. (DRD – Free Report) is another gold mining stock that rallied on Thursday. This came after the company announced that it is anticipating six-month revenues to rise by as much as 69% year on year to hit R2.1 billion. The projected earnings per share in the 47.78c and 49.22c, and if that happens, then it could be a significant improvement from a loss of 7.2c per share last year. The stock was up 5.60% to $6.22 in Thursday’s trading session.
This continued on Friday as well. Shares of the gold stock hit fresh 52-week highs of $6.40 during the morning session. This mimics the move that the gold sector as a whole has made. Gold futures broke to morning highs of $1,593.80.
Gold stocks To Watch #5 Centamin
Lastly, investors could also watch Centamin (CEE – Free Report). The company published its production report on Thursday. It proved to be a major positive. Centamin announced that gold production at its Sukari mine went up by 2% year on year and hit 480,529 ounces.
While gold production went up for the full year, the revenues stood at $658.1 million. Centamin also reported sales of 470,020 ounces of gold. Outlook for 2020 shows that the company expects production 510,000-540,000 ounces of gold. The increase in gold production could prove to be a boost for the company as well.
“Centamin has undertaken a number of initiatives in 2019 to improve the consistency at, and increase cash flow from, the Sukari mine, which have contributed to a strong fourth quarter performance. Consistent operational delivery against the mine plan remains the key objective.”Ross Jerrard, CEO, Centamin
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