Are These On Your List of Gold Stocks This Month?
The gold industry consists of companies that mine and refine precious metals. Gold is mined, and then sent to refineries for processing. It is then given to a Bullion Dealer which sells it to the customer. When there’s a lack of gold in the market the prices goes up, and when there’s more gold the prices goes down. If you were looking for the very basics of gold stocks, then there’s your 101 lesson for the day.
Many gold companies have been required to lower or stop production due to the coronavirus pandemic. This resulted in longer delivery times for gold to consumers and producers alike. This impacts the ability to get it to the market quicker due to production and logistics issues. Mentioned below are two gold stocks to watch due to their market history.
Gold Stocks To Watch: Barrick Gold Corporation
When it comes to the biggest gold producers, Barrick Gold stock (GOLD Stock Report) sits among the top ranks. The Toronto based company was founded in 1983 by Peter Munk. Since then they have grown to be the second biggest gold mining corporation on the planet. They currently operate mines in 12 different countries. It was reported that Barrick had 71 million ounces and 13.5 billion pounds of proven and probable gold and copper reserves as of the end of 2019.
When the market opened on May 13th, Barrick Gold stock was trading at $26.56. Shortly after it dipped down to a low of $25.64, but quickly settled around $25.80. Despite this recent drop, it is still up from its $24 average from April. Currently, the price of gold has a grasp on the entire market. This gold stock is following a similar trading pattern to the gold price itself. Since this trend has managed to uphold amid recent economic uncertainty, Barrick gold stock may be one to watch this month.
DRDGold Stocks To Watch: DRD Gold Limited
Shares of DRDGold Limited (DRD Stock Report) has reached fresh 52 week highs this month. After starting off below $2 a year ago, the gold stock has skyrocketed over 400% to highs of $10.36. A lot of this has to do with the climb in gold prices. But it also has to do with the company’s ability to execute on its operations.
In an operating update for the quarter ended 31 March 2020 released today, has reported an 18% quarter on quarter increase in adjusted EBITDA to R389.3 million, reflecting a 13% increase in the average Rand gold price received to R785 581/kg. The company’s Ergo and Far West Gold Recoveries operations were temporarily halted towards the end of the March quarter due to the national lockdown.
DRDGold Ltd is a South African gold mining company engaged in surface gold tailings retreatment including exploration, extraction, processing, and smelting. It has two operating segments: the Ergo which is a surface gold retreatment operation that treats old slime dams and sand dumps to the south of Johannesburg’s central the business district as well as the East and Central Rand goldfields. It also operates the FWGR which is a surface gold retreatment operation and treats old slime dams in the West Rand goldfields. The Ergo segment derives a vast majority of the revenue.
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