Gold Stocks Off To Green Start In March
Call it a result of the Fed or luck of the Irish, gold stocks are shining once again. While last week was one of the roughest for the yellow metal this year, markets are back to basics. What I mean by this is that we’re back to worrying about the usual things. You know, economic slowdown, low-interest rates, trade wars, etc. But that’s great for gold. During times of economic uncertainty especially amid low-interest rates, gold stocks tend to thrive.
While some sectors continue to see volatility, gold has begun to trade higher. On March 4, gold futures traded as high as $1,654.30 and essentially recovered from last week’s selloff. Given the case in favor of gold stocks, will this rising tide lift all ships? If this should become the case, here are a few gold stocks to watch right now.
Gold Stocks To Watch: IMC International Mining
As The Street said, “junior [gold stocks] tend to be more volatile than the majors, jumping faster in rallies, and falling further in routs. Now that gold prices seem to be on the march higher, we can expect juniors to race ahead of the major gold stocks.” In light of this, junior gold stocks like IMC International Mining (IMIMF – Free Report) (IMCX) have gained attention. Without question, the latest March 15th date given in this week’s press release is a big focal point.
If you aren’t up to speed on this then let’s fill you in. A few weeks back IMC announced entry into a letter of intent to purchase Thane Minerals. The importance of Thane is its 100% ownership of a project called Cathedral located in British Columbia’s Quesnel Terrane. As of this week, the company announced plans to close the deal on or before March 15. When you talk about the Ides of March being important, it could have a few meanings right now.
The Quesnel Terrane hosts past and planned production. With the rising price of gold, this acquisition could present bigger opportunities for IMC. If junior gold stocks are a focus, IMC could be one of the top junior gold stocks to watch in light of this latest announcement.
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.
Gold Stocks To Watch: B2Gold Corp
Another one of the top gold stocks to watch right now is B2Gold Corp. (BTG Stock Report). Shares of the company have managed to climb back as much as 17% since last week’s lows. While gold prices have greatly influenced the price of B2Gold stock, so has the company’s latest developments.
Recently the company reported its quarterly earnings. Its EPS came in at $0.03 and beat consensus estimates of $0.01 EPS. While this is a 200% jump over the same period last year, it wasn’t the only highlight. B2Gold also saw its sales beat estimates too. For the period, the company recorded $229.265 million. Estimates pegged the gold stock reporting just under $208 million in sales.
Analysts have taken note of the company’s progress as well. Canaccord Genuity raised its price target to $7.50CAD from $7CAD. BofA Securities also followed suit. The bank increased its $5.50 target to $6.30 while maintaining a Buy rating on the gold stock. Cormark Securities and BMO Capital also boosted targets on the stock. Will this optimism continue to push shares higher in March?
Gold Stocks To Watch: Newmont Corporation
On the higher end of the spectrum, Newmont Corporation (NEM Stock Report) continued to push higher on March 4. Since hitting lows of $44.97 last week, the gold stock has been on a rampant trend to make new highs. While the 52-week high during normal trading hours is still at $51.34, shares of Newmont gold stock hit $51.20 during premarket trading on Wednesday.
What has helped NEM maintain this uptrend was its latest update. The gold company announced a proposed offering of senior notes on March 4th. This would see the company use proceeds from the raise for repurchasing outstanding notes coming due in 2022 and 2023. While Newmont gold stock just came off of its biggest 1-day percentage increase in more than a year, traders remain focused to see how the stock will perform this month.
As one of the largest gold stocks in the market, NEM tends to take a leading role in the direction of the sector’s top gold ETFs. Right now, B. Riley golds a buy rating on the gold stock with a price target o $54. In addition to that, CIBC rats the stock as Outperform and gives it a target of $58 right now.
Gold Stocks To Watch: Barrick Gold
Barrick Gold stock (GOLD Stock Report) narrowly reached new March highs on the 4th. Along with Newmont, Barrick moved to reduce coal consumption at the Nevada venture recently. The two companies agreed to approve the conversion of a coal plant to one that operates on natural gas.
Miners have caught heat for using fuels that are less environmentally friendly. This move aims to achieve final commissioning or the plant in the second quarter of 2022 further decreasing the carbon footprint of the plant.
Since last week, shares of Barrick gold stock have jumped back by 18%. Last week was concerning for some as Barrick goldstock broke below its 50-day moving average for the first time since September of last year. As a general rule of thumb, this level tends to be looked at as a level of support for stocks. When a stock dips below and breaks support is can be seen as a sign of weakness in the market. Luckily for Barrick gold stock, the recent surge in gold prices has helped share prices recover this week.
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