Gold Stocks Rebound In Early Trading On New Coronavirus Data
U.S. stock futures flip-flopped on Wednesday triggering bullish sentiment in gold stocks. Both the European and Asian markets dropped as investors grew more concerned over new information on the expanding coronavirus cases. This week the S&P has dropped nearly 2,000 points causing panic in the stock market. While the gold sector took a back seat on Tuesday, Gold Futures have rebounded during early trading on February 26.
“The ultimate impact remains entirely unknown at this stage. And uncertainty is the enemy of conviction.”Eleanor Creagh, Saxo Capital Markets
Meanwhile, cases continue to spread across the world. The CDC has warned that it’s not a matter of if but when the spread will hit the greater United States. As investors continue to brace for an unknown impact, gold stocks remain in the spotlight. With that in mind, here’s a list of gold stocks to watch right now.
Gold Stocks To Watch: IMC International Mining
First, IMC International Mining (IMCX – Free Report)(IMIMF) has managed to post a strong rally this year. This month, not only did the company bring on new management, appointing David CharCharlton as CFO, it also has a letter of intent in place for a new acquisition.
The proposed, multi-million dollar purchase targets Than Minerals. It would see IMC International acquire Thane and its 100% owned Cathedral Property in British Columbia, Canada. Property is located in Quesnel Terrane, which hosts past, current and developing copper-gold mines. It also has sound infrastructure as its close to power, road access and water.
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, Greg Hawkins, MSc, PGeo will be appointed as Chairman to the Company’s Board of Directors as part of this acquisition. Hawkins is currently a Director of New Pacific Metals Corp. (NUAG – Free Report) and was the Founding Project Consultant and/or Founding Director of seven public and private Exploration/Development ventures.
“The Cathedral Project has very good potential centered in this highly productive area. We will work diligently with the integrated Thane team to develop the Cathedral project and will continue our growth model through acquisitions of both domestic and international assets,” said President & CEO Brian Thurston. IMC International’s stock has climbed over 80% to date since the start of 2020.
Gold Stocks To Watch: Harmony Gold
After pulling back from historic highs on Monday, Harmony Gold stocks (HMY – Free Report) has started to rebound Wednesday morning. Shares closed at $4.03 but have since traded as high as $4.19 during premarket hours. Much of the latest excitement has certainly stemmed from the gold price boom but the company has also delivered on certain milestones.
Earlier this month, Harmony reported fiscal first half, 2020 financial results. These included, among other things, an increase in earnings per share as well as a jump in revenue. Furthermore, its commitment to the newly purchased South African assets of AngloGold may have brought some additional attention to the company.
The Mponeng mine is the world’s deepest mine and could enhance Harmony’s near-term production according to the company. How much production are we talking about; approximately 350,000oz per year. This will likely be something investors will monitor given the consistent $1,600+ gold price right now.
Gold Stocks To Watch: New Gold Inc.
New Gold Inc. (NGD – Free Report), along with IMC International, was one of the few gold stocks holding gains on Tuesday. Shares reached highs of $1.04 before settling out around $0.97. So what helped New Gold stock weather the storm on Tuesday?
The company announced a $300 million partnership with Ontario Teachers’ Pension Plan. Specifically, the partnership is at the New Afton Mine. Not only does it add significant financial flexibility to New Gold, but it also gives the Plan access to a free cash flow interest in the Mine. There’s also an opportunity for the Pension Plan to convert the deal to a joint venture interest in 4 years.
“Ontario Teachers’ Natural Resources group has a global mandate to pursue investments that provide attractive returns and inflation protection through exposure to a basket of key commodities,” said Dale Burgess, Senior Managing Director, Infrastructure & Natural Resources of Ontario Teachers’. Thanks to this key development, shares of New Gold stock were able to maintain trading levels above $0.90 during premarket hours on Wednesday.
Gold Stocks To Watch: Northern Dynasty Minerals
Finally, Northern Dynasty Minerals (NAK – Free Report) could be a top gold stock to watch. As of its last update, the company reached a milestone. The US Army Corps of Engineers distributed a preliminary version of the Final Environmental Impact Statement for Northern’s Alaska property.
The importance of this document is what it could mean for Northern Dynasty’s project. As stated by the company, “After reviewing a copy of the Executive Summary of the Preliminary Final Environmental Impact Statement for the Pebble Project that was leaked to the media, Pebble Partnership CEO Tom Collier said the information in the near-final report was positive and demonstrates the project can be done without harming the Bristol Bay fishery and would be beneficial to communities closest to the project.”
Shares contracted from earlier highs of roughly $0.71 this week to lows of under $0.60 on Tuesday. However, during premarket trading on February 26th, the gold stock has begun trading back above $0.60. With gold prices rising again, can NAK stock hold this trend into March?
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