A Surge In The Precious Metal Has Hopes High For April
The price of gold was steady on April 1st but that didn’t slow down gold stocks, on the other hand. Major gold ETF’s took to the sky during the morning session with junior gold stocks enjoying the majority of the gains.
President Trump’s comments didn’t instill a sense of calm in the American people on Tuesday evening. As a result, broader markets declined. However, gold went in the opposite direction.
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In addition to this, oil prices continued to trade lower on Wednesday. This comes as a near-term supply glut and lower demand cratered prices earlier this week. As we’ve discussed previously, these low prices for oil and gas lend strength to gold mining companies through lower CAPEX. But as the price of gold and other precious metals steadies, which gold stocks will be best to watch to begin the new month?
Gold Stocks To Watch: IMC International Mining
IMC International Mining Corp. (OTC: IMIMF)(CSE: IMCX) has been one of the top junior gold exploration stocks to watch this year. After starting around $0.25, shares already managed to rally 100% to highs of $0.50. This is both on the U.S. and Canadian exchanges. The recent attention being placed on its pending acquisition of Thane Minerals has boosted sentiment around the company. Even with the price of gold fluctuating, IMC has enjoyed a steady climb in its stock for the last 4 sessions.
This follows a recent corporate call that included incoming Chairman, Greg Hawkins, and CEO Brian Thurston. On the call, Hawkins discussed the potential he sees in Thane’s Cathedral Property citing a prime location between two, already established mines. Furthermore, Hawkins expects to begin exploration by May of this year with drilling to start before the end of 2020. When asked about the potential impact of COVID-19, IMC International’s CEO explained that he doesn’t anticipate any adverse effects at this time.
Cathedral is a 51,000+ acre parcel in northern British Columbia’s Quesnel Terrane. It hosts past and planned production. On top of that, the fact that Cathedral is one of the undeveloped portions of Quesnel could mean the potential to strike gold first. Since March 25, IMCX has climbed from $0.38CAD to $0.485CAD on Wednesday.
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
B2Gold Corp (BTG) was one of the bigger movers on Wednesday morning. Shares of the gold stock reached early highs of $3.26, just shy of the March 31 highs of $3.31. Earlier in the week the company reported an update to its outlook in response to COVID-19.
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Specifically, the company explained that it would implement response measures accordingly. This included monitoring public and employee sentiment as well as keeping track of all steps of its supply chain. What’s more is that even amidst these questionable times, the company resumed operations at its Masbate Mine in the Philippines. It also continued mining and milling operations at the Fekola and Otjikoto mines in Mali and Namibia.
While some miners have paused operations. B2Gold has taken a more proactive approach. As a result, the company expects to meet or exceed budgeted consolidated gold production for the first quarter of the year.
Gold Stocks To Watch: Yamana Gold
Yamana Gold (AUY) has also taken up a bullish trend on Wednesday. Shares closed relatively flat on Tuesday but as the market opened on April 1, Yamana gold stock started trading higher. Prior to the lunch hour, the gold stock reached highs of $2.92 with strong volume driving the market’s momentum.
In a similar fashion to B2Gold, the company has been adjusting to the current state of affairs across the globe. Late last month Yamana announced that it reduced its operations at the Canadian Malartic mine in order to help mitigate the spread of coronavirus. Unfortunately, the company didn’t give a set date to return to operations at full capacity. Yamana simply stated that it would begin as soon as the restriction is lifted. On top of this, the company temporarily demobilized its operations at the Cerro Moro mine in Argentina to comply with the government. However, the travel restrictions there are only through March 30.
The company withdrew its guidance in light of these developments. Needless to say, the market has taken more interest in the company to start the new month. “With reduced production coming from suspended or reduced operations, along with other present-day uncertainties, the company is withdrawing its 2020 guidance for production and costs,” Yamana said in a prepared statement. “The company will update guidance once it has a better understanding of the actual duration and impact of these uncertainties. The company expects that any suspended operation is well positioned to safely and efficiently ramp-up in a timely manner once temporary suspensions cease.”
Gold Stocks To Watch: Kinross Gold
Kinross Gold (KGC) has also followed the trend of gold penny stocks this month. It reached highs of $4.36 prior to the lunch hour as gold prices hovered around $1,600. Something adding to the market momentum for Kinross gold stock was the company’s latest update.
The company discussed its response planning and financial position in light of the coronavirus pandemic. The company has been working to implement social distancing practices as well a fold in remote working options where possible. Furthermore, the company withdrew its full-year production and cost guidance for 2020. However, Kinross did report its production expectations for the first quarter.
The company sees Q1 production of about 560,000 gold equivalent ounces with sales of about 540,000 gold equivalent ounces. Furthermore, Kinross anticipates that its cost of sales will be at the higher end of the original annual guidance range with gold sales slightly lower than production. Something to note is that even amid all of the caution, Kinross doesn’t anticipate a direct, material impact from the virus.
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