5 Gold Stocks To Watch As Metals Prices Head Higher
The coronavirus scare in China has had a profound impact on the financial markets. After a bit of positivity in stocks after the weekend, the threat of the epidemic returned to the markets again. Due to that, gold stocks rose moderately on Tuesday’s morning as investors flocked to the precious metal as a safe-haven against this market volatility.
After the bullish performance last week, gold could again be on the verge of a rally. In such a situation, investors could consider having a look at some of the gold stocks in the market. Here is a look at 5 of those.
Gold Stocks to Watch: IMC International Mining
IMC International Mining (IMCX – Stock Report)(IMIMF) has been no stranger to the boom in gold stocks. Since the beginning of January, shares of this junior mining stock have soared. At the time, IMC traded around $0.25CAD before going on a 1-month breakout move to highs of $0.50CAD this week.
IMC International Mining Corp. is a junior exploration and development company. It is focused on the advancement of its assets which include the Bullard Pass Property in Arizona as well as future prospects for additional mining operations. The gold market has been dominated by large-cap companies that can be far out of reach for many investors based on the hefty price tag. But as we’ve seen, small-cap gold stocks can bring big opportunities.
Thanks to junior mining stocks rallying in a big way this year, the hunt for the next big “junior” is beginning. For many who invest in gold, they may look beyond North America for speculative bets on gold exploration. However, in the case of IMC International, the Bullard Pass Property could be an untapped resource as it stands today. Its property is currently comprised of roughly 3,896 acres in the Harcuvar and Harquahala Mountains in Yavapai County, Arizona. Furthermore, reports have cited that Bullard Pass is a “property of merit and further exploration is warranted.” As the market continues to focus on gold stocks, juniors like IMC have managed to reach new highs.
Gold Stocks to Watch: Hudbay Minerals Inc.
Hudbay Minerals Inc. (HBM – Stock Report) hasn’t managed to turn things around for the last few weeks. At the beginning of the new year, shares traded around $5.40CAD.
They have since slid to lows this month of $3.81CAD but that trend could have begun to change on February 11. HBM stock managed to rebound back to highs of over $4CAD while broader gold stocks rallied.
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It could be the anticipation of Hudbay’s upcoming 4th quarter and 2020 earnings results and guidance. Next week, Hudbay hosts a conference call to discuss its results for Q4 2019. It will also give production and cost guidance for 2020. Though results will be published on the 20th, it could be an important event considering 2020 guidance will set the tone for at least the first few months of the 1st half of 2020.
Gold Stocks to Watch: AngloGoldAshanti
The other gold stock that may be worth adding to the watch list is that of AngloGold Ashanti (AU – Stock Report). The company is in the process of finding a buyer for its South African assets. On Monday, it emerged that AngloGold is going to sell those assets to Harmony Gold.
The two parties are still negotiating with regard to the finer details. But this deal marks a major breakthrough for AngloGold. UBS recently initiated coverage on the gold stock with a Neutral rating as the newest analyst to follow the stock. However, it didn’t issue a price target yet. Among analysts, however, the average price target is right around $21.
Gold Stocks to Watch: Hecla Mining
Hecla Mining (HL – Stock Report) has emerged as another gold stock to watch over the course of the past few weeks. On Monday, the company made another major announcement. Hecla revealed that it is going to offer senior notes worth $475 million that are going to be due in 2028.
The company will use the cash to take care of the outstanding senior notes that are going to mature in 2021. That is not all. Last week, the company reported its Q4 2019 financial results, and its losses narrowed to $.02 per share.
That saw shares rally and narrowly make new 2020 highs. However, the financing news from this week saw shares slide on Monday. But today (Feb 11), the gold stock has reversed its course and bounced back from this week’s lows after reaching highs of over $3.20 during the morning session.
Gold Stocks to Watch: Barrick Gold
Last but not least, is Barrick Gold stock (GOLD – Stock Report) (ABX). On Monday, it emerged that Barrick decided to sell its Acacia Exploration project to Shanta Gold (SAAGF) for $14.5 million. The project holds around 1.1 million ounces of gold. The cash & stock deal could prove to be a significant one for Shanta Gold in the larger scheme of things.
Barrick gold stock recently saw a surge in trading volume this week. With the rising prices for gold and other metals, the stock jumped to highs of $18.64 on Tuesday. Similar to AngloGold, Barrick Gold stock has attracted attention from analysts. This week saw National Bank raise its price target to $34 CAD from $33CAD previously. It also maintained the rating of “Outperform”.
The recent focus by the company to expand its Tanzanian operations has been turning some heads. After signing a deal that would essentially make the Tanzanian government a partner on its venture, Barrick looks to begin shipping gold. According to its last update, the company anticipates shipping some $280 million worth of gold from the country. In fact, CEO Mark Bristow told Reuters, “The shipments will start immediately and, as we speak, we are mobilizing the concentrates.”
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