Gold Stocks To Watch As Coronavirus Concerns Grow
While more new cases are confirmed, some are fleeing the usual sectors and running to gold stocks. Aside from being a safe-haven during times of financial crises, gold is also looked at for a hedge against market uncertainty. Case in point, the U.S. exchanges are down once again today. This comes after an emergency rate cut was thought to remedy the situation.
However, with some volatility in gold stocks, there is a new opportunity to capitalize. But will the coronavirus impede the global supply chain for precious metals? To answer that, we need to look at a few market leaders and decide if the trickledown effect will trigger more momentum for junior stocks. This, however, has its own specifics.
What I mean by this is that some junior mining stocks are trading higher amid discovery and acquisition news. Since many “gold bugs” look at longer-term potential, several juniors have sparked new interest this month.
Lower Priced Gold Stocks Climbing Higher
Take IMC International Mining (IMIMF – Free Report) (IMCX) for instance. The gold penny stock has maintained a relative sideways trend for a few weeks now. But after its latest announcement, shares have begun to climb in both price and trading volumes. Last month IMC International announced the signing of a letter of intent to acquire Than Minerals. The opportunity here is the fact that Thane owns 100% of the Cathedral property in northern British Columbia.
Since Cathedral is located in the Quesnel Terrane, the property is amid several mineral-rich deposits. In fact, the Quesnel Terrane is 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.
IMC International Mining & The Quesnel Terrane
With the rising price of gold, this acquisition could present bigger opportunities for IMC. Earlier this month, IMC added a bit more excitement to the mix in announcing that it plans to close on this acquisition by March 15 or earlier. I don’t have to explain why this could be a big milestone for the company.
Not only would it add another asset to its books but it would put the company in a location within one of the world’s most active gold discovery & mining zones. Don’t forget, just northwest of the area is the famous British Columbia Golden Triangle. That’s been home to some of the biggest gold discoveries in history.
Yamana Gold Sells Royalty Portfolio
Additionally, Yamana Gold stock (AUY-Free Report) is another lower-priced gold name that has gained attention lately. The company just sold its royalty portfolio to Guerrero Ventures for $65 million. This included a $20 million cash payment and $45 million in shares in a newly created, growth-oriented company.
Guerrero will acquire two portfolios of precious metals royalty, stream and gold loan assets from funds related to Orion Resource Partners LP and Yamana for a total consideration of $268 million and $65 million, respectively.
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This also comes during a time where Yamana is evaluating a joint venture for the Domain Project in Manitoba with New Domain Resources. Yamana said that this year, it will continue to engage with the Bunibonibee Cree Nation to reach an agreement that will support the advancement of exploration in the 576-hectare project, which it considers as a Tier Two project.
Leading Gold Stocks To Watch
While lower-priced gold companies are targeting expansion, other market leaders are focused on playing defense. That’s especially considerate of the recent focus on the coronavirus’s blowback on the global mining supply chain.
Barrick Gold Stock Stays The Course
Despite an intraday pullback, shares of Barrick Gold (GOLD-Free Report) stayed the course for the week. Not only was Barrick gold stock able to make new March highs, but it was also able to carry on with another consecutive day of gains after dropping last week.
On Friday, the company reported that it was well-prepared for the coronavirus. Barrick explained that it’s using its experience dealing with Ebola virus outbreaks around its African operations to manage its response to the coronavirus epidemic. The company said it had counseled all employees about the symptoms of the virus and the risk of contracting the infection.
Additionally, access to each site across the group is controlled. Visitors, employees and contractors are routinely screened before and upon arrival. Emergency medical procedures and facilities are also in place across the organization.
Newmont Gold Stock Sets New 52-week High
While the company didn’t make any new updates, the gold rush helped boost shares of Newmont Gold stock (NEM-Free Report). In fact, the world’s largest gold company etched new 52-week highs amid the coronavirus uncertainty.
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This comes just a day after the company made a big announcement. Newmont reported that it sold its stake in Continental Gold for $260 million in an all-cash deal. This further boosted the company’s growing list of asset sales over the last year.
“Selling our Continental stake into a strong bid allowed us to generate $260 million in cash that will support our disciplined approach to capital allocation. Combined with the sale of our interests in Continental and KCGM…we will have generated more than $1.4 billion in asset sales in less than a year since closing the Goldcorp acquisition last April.”Tom Palmer, President and Chief Executive Officer
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Click Here For Full Disclaimer.
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