Gold Stocks That Reached New Highs This Month
Gold continues its remarkable rally today amid fresh coronavirus fears. Its possible ill effects on the global economy have found the spotlight. The precious metal hit its highest level in seven years. However, it remains to be seen how far it eventually goes.
“It’s the realization that the market was not going to bounce like it usually does after a severe one-day decline,” said Matt Maley, an equity strategist at Miller Tabak & Co. “Once that become obvious, the short-term traders started selling and the long-term investors pulled in their horns.” In such a scenario, it’s important for investors to consider gold mining stocks to watch. Here is a look at 5 of those.
Gold Stocks To Watch: Yamana Gold
The first gold stock that could be put into the watch list at this point is that of Yamana Gold (AUY – Free Report). The company announced this week that along with Orion Resources Partners, it launched a new precious metals royalty firm. The new entity is going to include assets spread across South America, North America, Australia, and Africa.
Guerrero Ventures is going to acquire the royalties. Yamana Gold’s portion is going to be sold off for $65 million. It is a significant deal for Yamana Gold. But even amid pessimism for stocks, shares of Yamana gold stock retreated from highs earlier in the week. Will Yamana gold stock turn around as the market continues to slide?
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Gold Stocks To Watch: Iamgold Corp
Another gold stock that could be worth tracking during this rally is Iamgold Corp (IAG – Free Report). The company announced fourth-quarter results this month. Although it made a loss of $303.9 million, the stock has rallied.
It should be noted that in the prior-year period, the losses stood at only $39.5 million. The impairment at its Westwood plant was blamed by Iamgold for the disappointing performance. Gold production in the quarter stood at 192,000 ounces, which reflected a drop of 17%. However, its outlook could give way to more opportunities for the company. According to the company, IAMGOLD expects 2021 attributable gold production to be in the range of 760,000 to 840,000 ounces, approximately 10% higher than the expected 2020 production levels.
Gold Stocks To Watch: Sibanye-Stillwater
The other gold stock that could be worth having a look at is the Sibanye-Stillwater (SBGL – Free Report). The Chief Executive Officer of the company Neal Froneman told Bloomberg that the company has set future gold portfolio acquisition target at as much as $5 billion. It is a major announcement from the company and one that could make investors excited.
Froneman stated that the company is ‘underweight in gold’ and hence, in order to improve the situation, the company has decided to go on a massive acquisition spree. “In terms of time scale, six to nine months we will pull the trigger,” Froneman said. “Absolutely yes, we are looking at various assets, we have a number of opportunities. There is still a lot of work to do, but entering into discussions, doing a due diligence and getting all the financing in place is probably a six-month process.”
Gold Stocks To Watch: Eldorado Gold
Eldorado Gold (EGO – Free Report) has also emerged as another top gold stock to watch. Its fourth-quarter results proved to be its best performance in two years. Additionally, the company announced a positive projection for both gold production and costs. It has also outlined plans for a new gold mine at Kisladaq, which could produce the precious metal for 15 years.
The stock soared by 30% on the back of such developments. In the fourth quarter, the company produced 118,995 ounces of gold, and experts believe that there could be more room to grow for the Eldorado stock. On Tuesday, analysts at CIBC upgraded Eldorado gold stock.
It previously had the company at a Neutral rating but upped it to Outperform. The firm also increased its price target from $9.75 to $13. It’s also important to note that while many top gold stocks slid on Tuesday, Eldorado gold stock continued to trade higher.
Gold Stocks To Watch: Sandstorm Gold
After having delivered a strong performance in its quarterly earnings, Sandstorm Gold Ltd. (SAND – Free Report) has seen its stock soar over the past two weeks. In its Q4 2019 and full-year results for 2019, the company managed to surpass all expectations with its stupendous performance. The company also announced that its stock is now going to be transferred from NYSE American to NYSE.
ANalysts have also reacted favorably to Sandstorm Gold stock. Raymond James, for example, maintained its rating on the company. The firm holds a Market Perform rating on the gold stock. It also game Sandstorm a price target of $7.25.
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