Are These Gold Stocks On Your List Today?
The gold rally intensified this morning as the coronavirus scare heightened. This was following the discovery of new cases in South Korea. The discovery of these cases caused more uncertainty in the financial markets and investors against flocked to safe-haven assets like gold. This resulted in a fresh rally in the precious metal this morning, and it hit its highest level in seven years today.
The price of spot gold rose by as much as $1,652.10 an ounce. In this sort of situation, it could be worthwhile for investors to have a look at gold stocks. Here is a look at 5 of those.
Gold Stocks Trading Higher #1 Yamana Gold Stock
One of the gold mining stocks that could be considered by investors at this point is that of Yamana Gold Stock (AUY Free Report). Things got off to a strong start on Friday especially with the rise in gold prices. Yamana gold stock not only reached new 52-week highs.
It also broke out to levels the gold stock hasn’t seen since September of 2016. This week the company updated on its generative exploration program and plans to “unlock value from advanced and advancing exploration projects.”
Henry Marsden, Senior Vice President of Exploration at Yamana said, “We believe that investing in a generative exploration program today will secure our future tomorrow. We have strong prospects in mine-friendly jurisdictions that we know well, and we are confident that they will become a cornerstone of Yamana’s next generation of mines.”
If you’re watching Yamana gold stock right now, it’s just declared its first-quarter dividend. The price reflects an increase of 25% to the annual dividend. On top of this the company has just reported strong Q4 and full-year 2019 results. Paired with the latest move for the price of gold, AUY could be a top gold stock to watch right now.
Gold Stocks Trading Higher #2 Kirkland Lake Gold
Another interesting gold stock at this point in time is that of Kirkland Lake Gold Ltd (KL Free Report). It made an important announcement on Thursday. The company revealed it had outlined as much as $500 million towards capital spending.
It is more than twice the earlier capital spending projection of $245 million. The stock declined after the announcement, but it should be noted that higher capital expenditure can often lead to significant growth for a company.
In light of this, shares slowly but steadily rebounded on Friday climbing back to highs of $36.92 during the first half of the day. Analysts’ ratings came out on Feb. 21st as well. Across the board, Kirkland Lake gold stock’s price target was cut. Scotiabank dropped to $56CAD from $67 CAD.
TD Securities lowered its $61 CAD target to $58 CAD while BMO lowered the target to $58 CAD from $61 CAD. Furthermore, CIBC World Markets cut its target the least from $65 CAD to $62 CAD. In light of these latest analyst moves, will Kirkland have a difficult time breaking out of this funk in light of these big moves for gold prices? That’s a question you may want to keep in mind if this is on your list of gold stocks right now.
Gold Stocks Trading Higher #3 Iamgold Corp
On the other hand, Iamgold Corp (IAG Free Report) declined yesterday after the company announced its financial results for the fourth quarter. The company’s losses widened from $39.5 million in the year-ago period to $303.8 million in Q4 2019.
IAMGOLD revealed that the substantial impairment charge for its Westwood mine located in Quebec is the primary reason for the disappointing performance. Gold production declined 17% to hit 192,000 ounces.
However, the analyst community wasn’t as bearish on IAMGOLD stock as it was on Kirkland Lake Gold. TD Securities dropped its target from $8 CAD to $7 CAD but maintains a Buy rating. On the other hand, National Bank maintained its Outperform rating but cut its price target from $6 CAD to $5.50 CAD. RBC also followed suit in maintaining its rating but cut its target from $3.75 CAD to $3.25 CAD.
However, as this is the case, shares of IAG stock managed to jump more than 7% on Friday. It’s likely that the price of gold is acting as a strong supporter for companies like IAMGOLD and Kirkland at this point. Fundamentally, we’ll see if the companies can turn things around in 2020.
Gold Stocks Trading Higher #4 Eldorado Gold
One of the top gold stocks on Friday has been Eldorado Gold stocks (EGO Free Report). Shares were steadily climbing back from 2002 lows over the last week. However, Friday saw EGO stock skyrocket on its highest share volume day of the year.
Late Thursday evening the company provided fourth-quarter and full-year operating results for 2019. To say it turned some heads would be an understatement at this point. Shares have jumped to highs of over $9.80. Considering that Eldorado traded around $6.70 at the start of the week, it’s a noticeable catalyst for the gold stock. Paired with the explosive price of gold today, it’s no wonder why the move could have been compounded.
In addition to strong quarterly and annual results, Eldorado also gave 2020 production guidance. For fiscal 2020 the company sees production coming in between 520,000 and 550,0000 ounces of gold. It also expects a 15-year mine life at its Kisladag property. The mine is forecast to produce an average of 160,000 ounces per year with total proven and probable mineral reserves of 173.2 million tonnes at 0.72 gram per metric ton. It’s also expected to contain some 4 million ounces of gold.
Gold Stocks Trading Higher #5 Kinross Gold Stock
Finally, Kinross Gold stock (KGC Free Report) has reached another, new 52-week high this week. This is the 3rd consecutive day that the gold stock made a new record high. On top of that, Kinross is trading at levels it hasn’t seen since August of 2013.
Though there weren’t any new updates this week, Kinross gold stock is likely riding the wave that started after reporting earnings. As discussed earlier this week, Agnico Eagle Mines Limited (AEM Stock Report) and Kinross Gold Corp currently back White Gold Corp’s exploration program.
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As such, White Gold Corp 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.
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