The rally in gold has been in progress since the beginning of the year due to the onset of the coronavirus scare in China. However, the investment sentiment is now improving. This came after a senior medical advisor in China stated yesterday that the troubles with regards to coronavirus might be over by April.
Following such an update, gold hovered around the $1567.62 an ounce mark. It remains to be seen how it fares over the coming days. This week also sees earnings form some of the top gold stocks in the market, mainly Barrick Gold (GOLD Stock Report). On Wednesday, Barrick gold stock reached highs of nearly $19 during premarket trading.
This came after the company posted better than expected Q4 figures. Furthermore, it shed a favorable outlook for the mining sector in the near term. As a result of its performance, the company elected to increase its Q4 dividend by 40% to $0.07 per share.
Junior mining stocks have also felt the ripple effect from strong results from the likes of Barrick gold stock. IMC International Mining (IMCX Stock Report)(IMIMF) for example has reached new highs this week of $0.50CAD and managed to open green on Wednesday. As far as its U.S. listed stock, IMIMF is concerned, shares also broke new highs.
Much of the anticipation coming from junior gold stocks follow strong production numbers from larger companies like Barrick. Furthermore, the opportunity for juniors to enter deals with larger producers has also grown. Many of these larger companies are now targeting companies that have claims to properties with potential for discovery and/or proven reserves. The world’s largest gold companies have been busy acquiring rivals within the last year or so, with Barrick Gold buying Randgold Resources and Newmont Mining acquiring Goldcorp.
Gold Stocks Attempt To Hit Fresh Highs
Two of the other gold stocks to watch include Harmony Gold (HMY Stock Report) and Newcrest Mining. On Tuesday, it emerged that a stay order on the two company’s Wafi-Golpu gold-copper project was dismissed by the Papua New Guinea national court. It is a significant development for both companies. The project can produce as much as 320,000 ounces of gold a year to go along with its copper production.
On the other hand, Osisko Gold Royalties (OR Stock Report) has emerged as another interesting option in light of recent events at the company. On Tuesday, the company announced that effective February 20, Frederic Ruel is going to be the company’s, Chief Financial Officer. Currently, Ruel is the Vice President and Corporate Controller at Osisko.
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He is a highly experienced executive in the gold mining industry, and it remains to be seen if the appointment results in a bounce in the stock. In addition to that, the company also announced other appointments, and the stock rose by 6%. However, that move turned into a dip on Wednesday with several gold stocks falling in the morning session. It will be interesting to see if OR stock can turn things around before the end of the week.
Gold Stocks Gaining Analyst Attention
Other gold stocks are gaining significant ground in the analyst community as well. McEwen Mining Inc. (MUX Stock Report), for example, falls into this category. Analysts at B.Riley recently raised the price target on the gold stock. Previously, the firm issued its target at $3.80. However, this month that jumped to $4/share. The company also announced positive drilling results from its Whiskey Jack property in the Grey Fox Region.
McEwen stated that high‑grade gold mineralization was found on the property. Additionally, the company reported about 53 g/t Au over 6.7 m in the same property, and it makes for a highly positive report. Hence, it could be prudent for investors to keep track of this stock in the coming days.
Yamana Gold (AUY Stock Report) also found itself gaining ground with analysts as well. Stifel Nicolaus, for example, upgraded its rating on the stock to a “Buy”. Furthermore, the firm increased its price target from $5CAD to $6.50CAD this week.
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