Gold Stocks Surge After Metal Prices Reach 7-Year High
Gold has been in the middle of a remarkable rally over the past few days. On Thursday, gold futures gained for the sixth session in a row. The breakout of the coronavirus has resulted in fears of an economic slowdown in China.
But that isn’t the only thing fueling a fix for gold stocks. Yesterday’s Fed minutes also revealed underpinned concerns over rates and the global economy. This has seen investors flocking to sake haven assets like gold, which hit $1625.
Putting things into perspective, the last time the price of gold was at these levels was February 15, 2013. This means that the 7 years-to-date from Feb. 20, 2013, gold prices have now hit new highs. If investors are looking to take advantage of this gold rally, they could consider taking a look at some of the gold mining stocks in the market. Here is a look at a few that have made strong moves this month so far.
Gold Stocks to Watch: IMC International Mining
IMC International Mining (IMCX) (IMIMF Stock Report) has been one of the top gold stocks to watch this year. If you’ve been a reader of GoldStocks.com, you’ve likely become familiar with this junior gold discovery company. Even before its bigger move in the U.S., the Canadian listing made waves early on in 2020. Shares jumped as much as 100% from January 8 through February 10. After settling down a bit and consolidating to lows of $0.40CAD, the gold stock is back on the move, reaching highs of $0.46CAD so far this week.
A lot of the latest attention has stemmed from recent updates from the company that could be of note. First, its recent letter of intent to acquire Thane Minerals has placed a focus on the potential of its Cathedral Property in the Quesnel Terrane. This region of Northern British Columbia, Canada has been host to past and planned production.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
Furthermore, the deal brings on industry veteran Gregory Hawkins to the company’s board. Mr. Hawkins was the Founding Project Consultant and/or Founding Director of seven public and private Exploration/Development ventures. These include Brohm Mining, Banro Resource Corp, and African Gold Group. It also includes other companies that were eventually acquired for millions and even billions of dollars. Hawkins is also the current Director of New Pacific Metals, which acquired one of the companies Hawkins was involved with.
Gold Stocks to Watch: Kinross Gold
Another gold stock that could be worth tracking is that of Kinross Gold (KGC Stock Report). On Wednesday, shares of Kinross gold stock broke to new highs of $5.57 amid bullish gold prices. Further extending its gains on Thursday, Kinross reached fresh highs of $5.70 during early morning trading.
Agnico Eagle Mines Limited (AEM Stock Report) and Kinross Gold Corp currently back White Gold Corp’s exploration program. The significance of this is what White Gold Corp reported on Thursday.
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The company announced positive RC drill results on its recently acquired VG Deposit. The property was acquired in early 2019 and contains the VG Deposit. This hosts a historic inferred gold resource of 230,000 oz.
Gold Stocks to Watch: First Majestic Silver
On the other hand, First Majestic Silver (AG Stock Report) has emerged as another mining stock to watch this week. The company’s revenues rose by as much as 30% year on year to hit $96.5 million. Much of that was perhaps due to the 21% rise in average realized silver price.
Future Majestic missed analysts’ estimates, however. But the record-breaking revenues generated by the company saw its stock rising slightly before dropping to lows below $9.30 on Wednesday.
Today that is a much different story for this mining stock. Shares of First Majestic rebounded as precious metals surged during early trading. AG stock jumped to highs of over $10 before the 10 AM EST hour. Analysts started following the progress as well. HC Wainwright raised its price target for the mining stock. Previously, the firm held a target of $11.50 but increased that to $12. Analysts still maintain a Buy rating on First Majestic.
Gold Stocks to Watch: Newmont
Lastly, it is Newmont (NEM Stock Report) that could be in focus. This is in light of the latest developments at the company. First, Newmont announced that it is going to install an autonomous haulage system at the Boddington mine that it owns in Australia. The $150 million that it’s going to spend on the whole thing is expected to improve both safety and productivity at the gold mine.
Furthermore, the company reported Q4 results and future targets this week. Newmont is on track to realize $500 million per year of improvements in 2021 which exceeded its commitment by roughly 40%. Furthermore, it anticipated realizing $1.4 billion in cash proceeds in Q1 2020. This was through certain divestitures.
Newmont beat on sales forecasts as well as earnings per share forecasts for the fourth quarter. All-in-all, investors were very bullish on the stock. In turn, Newmont gold stock reached new highs of more than $48.40 on Thursday.
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