These Mining Stocks Are Active In July
Stocks were up again on Wednesday. but that didn’t put a damper on gold and mining stocks. In fact, BlackRock’s Silver ETF (SLV) came within striking distance of its 52-week highs on Wednesday. The same can also be said for VanEck’s Miner and Junior Miner ETFs GDX & GDXJ. Furthermore, the SPDR Gold Trust (GLD) was 30 cents shy of testing a new 2020 high this week.
Needless to say, the penchant for precious metals and minerals mining stocks hasn’t shrunk. In fact, it may be growing by the day. Despite favorable earnings from Goldman Sachs on July 15th, shares of the bank quickly retreated right after the opening bell. By mid-afternoon, GS stock had fallen from over $227 during premarket to lows of $214.69 during the regular session.
There’s no doubt that gold stocks and other mining stocks are feeling the love after even more coronavirus cases came up this month. On top of that, a Trump press conference caught the President hinting at a stalemate between the U.S. and China. Specifically, the President said, “I’m not interested right now in talking to China,” Trump said in an interview with CBS News. “We made a great trade deal. But as soon as the deal was done, the ink wasn’t even dry, and they hit us with the plague.”
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With obvious uncertainty, you can’t help but wonder if it’s time to revisit the bet on preciously metals right now. Gold jumped to a one-week high on Wednesday, holding comfortably above the key $1,800 level. “The worsening U.S.-China relations are leading to investment demand in gold,” said Jigar Trivedi, commodities analyst at Mumbai broker Anand Rathi Shares. This having been said, what are some of the top mining stocks to watch right now?
Mining Stocks To Watch: McEwen Mining
Shares of McEwen Mining (MUX Stock Report) have enjoyed a more steady move during Q2 and 3 so far. Ever since the March sell-off, the mining stock has managed to rebound by as much as 105% as of Wednesday’s $1.09 high.
Something to note has also been the technical trend for MUX stock. If you look at the 50- (yellow line) and 200-Day (red line) moving averages, you’ll likely notice a clear trend. The 50DMA has acted as a pivot or beacon for MUX to settle back around, following any sustained move. Meanwhile, the 200 DMA has been a strong level of resistance for the better part of the last 9 months. Will July finally see MUX pop above this level?
Over the last 2 weeks the mining stock has tested this 200DMA level 4 times. While there hasn’t been much news, the company did reveal that it refinanced some $50 million in debt at the end of June. Other than that, things have been relatively quiet.
Mining Stocks To Watch: Gold Fields Ltd.
The last few weeks, Gold Fields Ltd. (GFI Stock Report) has been one of the mining stocks to watch. In fact, since early-April, GFI stock has been on a tare. Shares have jumped from around $5.30 to new 52-week highs of $11.11 on July 15. During that time, not only have gold prices made progress, so has Gold Fields.
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Gold Fields stock hasn’t traded this high since early 2013. One of its projects is a 50:50 venture with Galiano Gold Inc. (GAU Stock Report) which recently gave an update at the start of July.
The previously announced 2020 exploration program at the Asanko Gold Mine has been underway with four drill rigs. It is now approximately 40% completed according to Galiano. Asanko Gold Mine consists of roughly 36,000m of Diamond and Reverse Circulation drilling according to the company. What we can also see, clearly is that GFI hasn’t had much trouble staying above its major moving averages this year. But the biggest question is can this pace continue? The stock is up considerably on the year and since the start of 2019, GFI has climbed over 215%.
Mining Stocks To Watch: Harmony Gold Mining Co.
Another one of the gold stocks we’ve followed for the last few months was Harmony Gold stock (HMY Stock Report). After breaking back above its 50- and 200DMA, HMY stock traded relatively sideways for most of Q2. Then at the end of June, shares kicked into high-gear and HMY stock jumped from around $3.40 to highs of $6.11 this week.
The only other news that has come out is with regard to a capital raise. Harmony Gold Mining announced on June 24th that it plans to raise $200 million. However, it may be the use of funds that has brought some solace to investors. Harmony said it aims to use the money to finance its South African asset purchases. Keep in mind that earlier this year the company signed an agreement to buy up AngloGold Ashanti’s Mponeng and Mine Waste Solutions.
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