Is There An Appetite For These Gold Stocks?
The gold sector has many companies that mine and refine gold and other metals. Gold stocks can often change with the price of gold itself. So when there’s less gold available the price goes up and when there’s a surplus it will go down. Gold stocks have been impacted by the coronavirus pandemic though. It has caused a cease or slow in production in gold mines and refineries. This resulted in gold taking longer to get on the market and affecting prices a lot.
As of Monday, June 1st, gold prices are lower than they have been, recently. Things such as reopening news related to continuing operations and even acquisitions can all affect the prices of gold stocks. Let’s take a look at some gold stocks that have been doing well in the market recently.
Gold Stocks To Watch #1: IAMGOLD Corporation (IAG)(IMG)
IAMGOLD Corporation (IAG Stock Report) is a Toronto based company that operates gold mines in multiple countries. The company was founded in 1990 and just 6 years later was added to the New York Stock Exchange in 2005. In 2019 alone, 762,000 ounces of gold were produced by IAMGOLD.
This gold stock to watch has announced some very good news recently. Monarch Gold Corporation sold 39 mineral claims in multiple cities called the “Fayolle property” to IAMGOLD. This was an 11.5 million deal paid in shares and cash.
This acquisition has allowed IAMGOLD to hold its recent gains. Last week it was trading around $3.50 a share. Now, shares of IAG stock are trading around $3.80. Can this good news cause this gold stock to continue to rise?
Gold Stocks To Watch #2: Monarch Gold Corporation (MRQRF)(MQR)
Following the previous gold stock to watch, we have the company that sold its 39 mineral claims to IAMGOLD. Monarch Gold Corporation (MQR Stock Report)(MRQRF) currently possesses 315 km² of gold locations. One of its deposits has proven and probable reserves of 1.8 million ounces of gold alone. Selling its mineral claims was nothing but good news for this gold company.
On June 1st, shares of MRQRF stock went from trading at $0.157 to trading at $0.18 after this news broke. Do you believe that this stock will continue to rise due to this recent news?
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The President and CEO of Monarch said, “This is a profitable short-term transaction for Monarch, allowing us to significantly strengthen our financial position without dilution and with the potential for appreciation if the share value of IAMGOLD increases, especially in the current gold bull market.”
Gold Stocks To Watch #3: Newmont Corporation (NEM)(NGT)
Newmont Corporation (NEM Stock Report) is the world’s largest gold mining corporation. It has gold mines in multiple states and countries around the world. Currently, it has more than 24,000 employees worldwide. In the last year shares of NEM stock have risen 36.9%.
While Newmont Corporation initially dropped at the beginning of the coronavirus pandemic, it not only recovered but rose way higher than it once was. Before the pandemic shares were trading at $43 for NEM stock. The pandemic saw it drop to a low of $39 in March. Now, it’s floating high at $59 a share on average. Its business has reportedly been positioned well to handle the economic struggles that the virus has caused.
In the First Eagle Investment investor letter for Q1, they had this to say about this gold stock. “The gold price helped support the stock price of Newmont Corporation, a Colorado-based miner with, in our view, high-quality assets located in favorable mining jurisdictions in North America, South America, Australia, and Africa.
With what we consider an impressive portfolio of assets, strong management team, solid balance sheet and history of generating free cash flow, Newmont appears well-positioned to withstand the economic disruptions related to the coronavirus pandemic.”
[Read More] What Are The Best Gold Stocks Right Now?
So it is clear that some gold stocks are able to strive in these uncertain times. It could be a good idea to have these companies on your list of gold stocks to watch for the future. Stay updated on news in the gold sector to see who the next big movers could be.
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