5 Gold Stocks Turning Heads After News This Week
The price of gold has been the point of focus over the past few days. It was back on the move yesterday as it not only recouped the earlier losses but, in fact, finished higher. This helped give gold stocks a nice boost as well. The price of the precious metal had gone down after it emerged that the coronavirus fear might be a thing of the past by this April.
However, the chairman of the Federal Reserve Jerome Powell stated yesterday that the United States government might resort to buying government bonds in case of a downturn IE quantitative easing. That resulted in a rise in gold even further, which continued on Thursday. Here is a look at five gold stocks to watch before next week.
Gold Stocks To Watch #1: IMC International Mining
IMC International Mining (IMCX – Stock Report) (IMIMF) has been one of the top gold stocks to watch for 2020 so far. Since the early weeks of January, shares have managed to jump 100% and currently hold around $0.45. In looking at previous updates, its Bullard Pass was a key focus for the company.
However, this week its latest news could signal a much bigger opportunity. The company signed a Letter of Intent with Thane Minerals Inc. to acquire 100% of Thane. The importance of this deal is that Thane holds a 100% interest in the Cathedral property. The main point here is the location of the project is in the Quesnel Terrane. This is in an area that has shown production of approximately 3 million ounces of gold and 700 million pounds of copper at just one of the surrounding mines.
Furthermore, the company brought on the new Chairman of the Board, Greg Hawkins. He has a laundry list of achievements over the last 50 years in the industry. Among many of these include his time at companies like these:
- Tagish Lake Gold Corp – Acquired by New Pacific Metals (NUAG Stock Report), a company with a market cap of over $760 Million. Hawkins is also the current Director of the company.
- Yellowhead Mining – Acquired by Taseko Mines for nearly $20 million
- Dayton Mining – Acquired by Pegasus Gold Inc. for $390 million
- Nevsun Resources – Acquired by China’s Zijin Mining for $1.8 Billion
Gold Stocks To Watch #2: Gold Fields Limited
One of the gold stocks that could be tracked at this point is Gold Fields Limited (GFI Stock Report). The company announced its full-year earnings yesterday and revealed that its earnings per share were boosted to $0.20 per share. In addition to that, Gold Fields also revealed that its gold production soared 590,000 ounces. This reflects a year on year rise of 13%. The company also announced that it is going to offer a stock placement worth $269 million in order to fund its Chilean project.
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In addition to this update, Gold Fields has also paused on any exit from Africa (for now). Unlike AngloGold (which you’ll read about below) Gold Fields feels it has a responsibility to the country. “We have a responsibility to the country in making this big resource viable,” Chief Executive Officer Nick Holland told reporters in Johannesburg on Thursday. “What kind of message do we send to the country if we throw in the towel?”
The South Deep Operation generated some $15 million in net cash for 2019. This was after roughly 10 years of losses. But while the South African gold industry has shrunk considerably, Gold Fields still thinks there may be an opportunity. Over the last 2 days, Gold Fields stock made an attempt to rebound from February lows. However, what turned out to be a strong open faded into a decline on Thursday. Will it be able to recover before next week?
Gold Stocks To Watch #3: Kinross Gold
Shares of Kinross Gold stock (KGC Stock Report) emerged as a top performer during the second half of the week. This came after the company’s fourth-quarter earnings beat estimates. It also maintained a long-standing track record:
“In 2019, our portfolio of mines performed strongly, as we increased production and lowered costs year-over-year and generated robust free cash flow. Our strong performance ensured we met our production, cost and capital guidance for the eighth consecutive year.”J. Paul Rollinson, President and CEO
The company revealed that it was helped by higher gold prices, and total production rose by as much as 5.8% year on year. That equated to 645,344 ounces. Its Tasiast mine produced 102,973 ounces of gold, which proved to be a quarterly record. Furthermore, KGC stock reached a new 2020 high on Thursday. Following the earnings win, Kinross Gold stock hit highs of $5.21. This was a price level it hasn’t seen since September of last year.
Gold Stocks To Watch #4: AngloGold Ashanti
AngloGold Ashanti (AU Stock Report) could also prove to be an interesting gold stock to watch in light of the latest events. This week, it emerged that it is going to sell off its South African assets as well as liabilities related to those assets for around $300 million to Harmony Gold.
“This sale helps deliver on our commitment to sharpen our management focus and capital allocation on the highest return investment options available to us,” said AngloGold chief executive Kelvin Dushnisky.
The company also projected that its earnings for the full year ended December 2019 are going to be in the $0.86 and $0.96 range. That would reflect a slight rise from 2018 but short of market expectations. AngloGold emphasized its desire to refocus on other regions including Australia and the Americas.
Gold Stocks To Watch #5: Barrick Gold
The fourth company on this list is Barrick Gold stock (GOLD Stock Report). On Wednesday, its Chief Executive Officer Mark Bristow stated that the company is well placed to raise its dividend by as much as 40%. It will be the third dividend boost from the company in a year. But that wasn’t the only reason investors were watching Barrick gold stock.
This week the company reported earnings. Not only did net earnings come in above estimates, but sales also did as well. Barrick reported a total sales of $2,883 million. This was up 51.4% year over year. Furthermore, Barrick Gold’s gold production for the year came in at 5,465,000 ounces. This was at the top end of its guidance range while copper production of 432 million pounds; also above the guidance range.
Thursday the company didn’t skip a beat as it continued to hit the market with fresh news. Barrick gold stock soared on the back of an update on progress in Senegal. Teranga Gold and Barrick obtained approvals from the Government of Senegal to close the previously announced acquisition of a 90% interest in the Massaqa Gold Project.
This is from Barrick’s wholly-owned subsidiary and its joint venture partner, Compagnie Sénégalaise de Transports Transatlantiques Afrique de l’Ouest SA. The Government of Senegal will hold the remaining 10%. Thanks to the upbeat news and surge in gold prices, Barrick Gold stock saw highs of $19.16 during the morning session. This has been a level of resistance this year and a pivot point for new highs last year.
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