The gold rally seemed to come to a halt on Monday as the precious metal declined slightly. This came after the Chinese economy got a significant cash stimulus. The previous week had been a relatively good one for gold as it gained 1%. Furthermore, in 2020 so far, it has gained as much as 4%.
Despite the slight fall, it should be noted that gold has managed to hit its highest price since October 2013. It was the case on Sunday when it touched $1598.50 an ounce. In light of these developments, these are some of the gold stocks that investors could look into. An even bigger focus may be on companies operating as discovery and development businesses via mining.
Mining Stocks To Watch #1 Golden Star Resources
The first gold stock to watch in these circumstances is that of Golden Star Resources (GSS – Stock Report). It made an appointment to its board of directors on Monday. The company announced that Karim Nasr had been inducted into the Golden Starboard of directors as the representative of La Mancha Holdings.
He is going to replace Naguib Sawiris, who has decided to step down from his position owing to other commitments. It is a significant development since La Mancha is the biggest shareholder in Golden Star. It holds 31% of the issued and outstanding shares. Something to note as well is the pull-back that this mining stock has seen recently.
Last time shares traded this low was back in October. That was before GSS went on to rally to highs of $3.84. Will that become the case once again or are shares set to slide lower this month?
- This Gold Stock Continues To Make New Highs As Investor Interest Grows
- Mining & Gold Stocks To Watch After Latest Pull Back
Mining Stocks To Watch #2 Newmont Corporation
Another mining stock that could be worth watching is that of Newmont Corporation (NEM – Stock Report). Earlier this year, Newmont made a major announcement with regards to its future dividends payout that must have come as a boost to its investors.
The company announced that its shareholders are going to get a 79% rise in quarterly dividends from now on. It revealed that the quarterly dividend due in April could go up from 14 cents a share to 25 cents a share. Even with this being the case, a stronger bull market for the S&P and Nasdaq have seen safe-haven stocks take a back seat for now.
Shares of Newmont consolidated heavily on Tuesday. Prices dipped to lows of $43.78. This, evidently, was a previous level of resistance back in late-December/early-January. As the month roars on, will NEM be able to maintain this support or will new lows be in store in February?
Mining Stocks To Watch #3 Novagold Corporation
Novagold Corporation (NG – Stock Report) is another gold stock that has consolidated a bit this week. However, in light of this, it’s important to point out that the stock is one of the few that have actually turned green for the time being. As of roughly 11 AM EST, Novagold stock bounced from lows of $8.77 to highs of over $9.06. Since the last reported quarter, Novagold stock has risen significantly.
That is probably due to the fact that the company has successfully reduced its net losses to $27.8 million in 2019, from $31.5 million in 2018 and $36.9 million in the year before that. Novagolds flagship Donlin Gold project in Alaska is owned equally with Barrick Gold Corp. (GOLD – Stock Report)
“The Company’s inclusion on the Russell 2000 index in June 2019 also brought increased attention, as core index fund holdings in NOVAGOLD increased along with other funds who mirror these indices, thereby building more institutional investor support for NOVAGOLD. We expect that support to continue to grow. Having positioned ourselves as a “Go-To” stock of the highest institutional quality, we believe that new gold investors will quickly appreciate the scarcity value of such attributes and the value of that “pure play” on gold.”Greg Lang is NOVAGOLD’s President and Chief Executive Officer
Mining Stocks To Watch #4 Equinox Gold
Lastly, Equinox Gold Corp (EQX – Stock Report) that could prove to be an interesting gold stock to watch. Last week it emerged that Equineqnox and Leogold shareholders approved the deal for the merger of the two companies. The combined company will continue as Equinox Gold.
This is a significant development since it could create a large gold producer in America. Also, since the deal is expected to conclude this month, it will be an interesting event to keep a close eye on.
In particular, a deal like this would give Equinox immediate access to numerous operating gold mins in Mexico and Brazil. With expanded reach, could Equinox become a leading gold stock to buy this year?