Gold Prices Hit A New 52-Week High On Wednesday; Is This The Top?
Such is the case this year with gold and gold stocks, prices continued rising on Wednesday. During the most recent session, the price of gold hit $1,866.80 for the first time in 9 years. This came amid a new surge of concerns stemming from international trade between the U.S. and China. Over the last 24 hours, the U.S. ordered the closure of the Chinese consulate in Houston. According to the Chinese Foreign Ministry, this is an “unprecedented escalation” in recent actions taken by the U.S.
US Secretary of State Mike Pompeo said US officials had set “our clear expectations for how the Chinese Communist Party is going to behave. And when they don’t, we’re going to take actions that protect the American people, protect our security, our national security, and also protect our economy and jobs.”
If it’s not concern over COVID-19, the market seems to gravitate to international issues. Obviously, the trade war between the United States and China hasn’t concluded. Nor is there a resolute plan of action as initially outlined. Late last year the two global superpowers were to have engaged in a phases plan to get back to trade talks. But those discussions have since deteriorated. This latest blow to international diplomacy doesn’t seem to help any either.
South China Morning Post further reported that a Qima poll of 200 companies with global supply chains found that 95% of US respondents planned to change to suppliers outside China. So it’s no wonder why the safe-haven trade is continuing to shine brightly this week. Nevertheless, with gold and silver hitting historic levels, is there still room for stocks to climb?
Top Gold Stocks To Watch: Hecla Mining Co
Shares of Hecla Mining Co. (HL Stock Report) reached a new 52-week high on Wednesday. The mining company’s shares tapped $5.35 early in the morning, which marked more than just a new yearly level. Hecla stock hasn’t traded this high since 2017.
Analysts at RBC recently upgraded Hecla to Sector Perform and riased the price target to $4.50. B.Riley had a similar response with an upgrade to Buy from Neutral. However, it left its price target set at $4.50 for the time being. Earlier this month the company reported preliminary production results and its cash position at the end of the second quarter as well as a new investment by Investissement Quebec.
Silver production came in at 3.4 million ounces, and gold production of 59,982 ounces. Its cash position was approximately $76 million. Furthermore, in the third quarter, to enable open market purchasing of some existing 7.25% coupon bonds and fund Casa Berardi’s capital expenditures, Hecla issued C$50 million (US$36.8 million) of senior unsecured notes to Investissement Quebec with a five-year maturity yielding 5.74%.
Phillips S. Baker, Jr., Hecla’s President and CEO said, “Because U.S. mines are essential businesses and the other two mines returned to production in the quarter, we increased production and internally generated cash flow. This performance has allowed us to substantially reduce our revolving line of credit which we expect to be fully repaid by year end.”
Top Silver Stocks To Watch: Endeavor Silver Corp.
Yesterday we discussed Endeavor Silver Corp. (EXK Stock Report) following analysts actions during the day.
B. Riley FBR is the latest firm to weigh in on the company. It initiated coverage with a Buy rating and a price target of $4.75. This comes just a few weeks after TD Securities, BMO, and HC Wainwright all lifted price targets on the silver stock. Here’s the breakdown:
Earlier this month the company reported abbreviated second-quarter production figures. It produced 596,545 silver ounces (oz) and 5,817 gold oz in Q2, 2020, for silver equivalent (“AgEq”) production of 1.06 million oz at an 80:1 silver: gold ratio (1.18 million oz at 100:1 ratio). On Wednesday, Endeavor stock hit a new 52-week high of $4.14 during the regular session. Prior to the opening bell, EXK stock hit highs of $4.25.
Top Gold Stocks To Watch: Barrick Gold
Shares of Barrick Gold stock (GOLD Stock Report) finally hit new 52-week highs this week. Though it came on Tuesday, before the market open on Wednesday, Barrick gold stock reached $28.87. As of right now, the new 52-week high stands at $28.84 during regular session trading.
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Barrick has also enjoyed a slurry of new analyst moves. Barclays raised Barrick Gold’s price target to $27 from $25. However, it kept its rating at equal-weight for now. Barclays joined Deutsche Bank, which raised its price target in June to $35 and maintains a Buy rating for the stock.
Earlier in July, the company reported preliminary second quarter sales of 1.22 million ounces of gold and 123 million pounds of copper. It also reported preliminary second quarter production of 1.15 million ounces of gold and 120 million pounds of copper. Group gold production for the first six months of 2020 was 2.4 million ounces, at the midpoint of the Company’s 4.6 to 5.0 million ounce guided range for the year.
Top Gold Stocks To Watch: B2Gold Corp.
Shares of B2Gold Corp. (BTG Stock Report) reached new highs of $6.79 on July 22nd. With gold prices surging this week, BTG stock saw several consecutive days of new 1-year highs. However, B2Gold reached a milestone that the other gold stocks mentioned did not. These weren’t just record levels for the recent time frame, these were new, all-time highs.
Earlier this month the company announced its gold production and gold revenue for the second quarter and first half of 2020:
- Consolidated gold production of 239,574 ounces, above budget by 3% (7,327 ounces) and a significant increase of 15% (30,684 ounces) over the second quarter of 2019 (excluding discontinued operations of El Limon and La Libertad)
- Total gold production of 241,593 ounces (including 2,019 ounces of attributable production from Calibre Mining Corp. (“Calibre”))
- Record quarterly consolidated gold revenue from the Company’s three operating mines of $442 million, a significant increase of 65% ($175 million) over the second quarter of 2019 (excluding discontinued operations)
- No lost time injury (“LTI”) incidents at the Company’s operating mines during the second quarter; the Otjikoto and Masbate Mines continued their remarkable safety performance extending the number of days without a LTI to 826 days (well over 2 years) for Otjikoto and 592 days (well over 1.5 years) for Masbate as at June 30, 2020
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