How Are Gold Stocks Performing In September?
Investors have kept their eyes on gold stocks in 2020. The gold industry is a competitive sector where many companies mine and refine gold. There are also other gold companies with a focus solely on land acquisition. When there is less gold on the market, the price will usually rise, and when there is more it typically will go back down. There are also other areas of the gold sector such as gold dealers and retailers. Due to the state of the economy, gold stocks have been noteworthy for some investors.
When March came around and business started closing due to the pandemic, it had a big effect on gold companies. Most gold operations had to be stopped which slowed down the industry immensely. This was especially difficult for those who wanted to purchase gold as a secure investment as the economy is crashing. However, this scenario of low supply and high demand was a boon to gold and gold stock prices. We even saw the price of gold reach new historic highs.
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Many investors don’t know what is going to happen to the market or the economy because of how COVID has impacted world. Most gold stock investors are focused on short term gains because of how volatile the market currently is. We’ve also begun seeing gold prices level out after a volatile month of August.
Following those historic highs, gold fell back below $1,900 for a brief period. Since then, the price of gold has settled out around $1,920. Wednesday saw the precious metal push higher to over $1,950. With that being said there are many great gold stocks to watch. Let’s take a look at 4 that have been trending in the market.
Top Gold Stocks To Watch: Freeman Gold Corp.
First off, let’s talk about Freeman Gold Corp. (CSE: FMAN Stock Report) (OTC: FMANF). Freeman Gold is a gold company that primarily conducts mineral exploration. This company acquires land then explores and then develops mineral properties. Most of its operations are run in Canada and the United States. Last month, Freeman started a 5,000-meter diamond drill program at Lemhi Mine.
Now, Freeman Gold has acquired a back-in right from Yamana Gold Inc. over the Lemhi Project. This was a huge development for Freeman as it not only de-risks the project but also brings Yamana in as an equity holder of Freeman. The company has issued Yamana 4,035,273 common shares or roughly 5% of its shares. The president and CEO of Freeman Gold Corp. said, “We are delighted to welcome Yamana as a 5% strategic shareholder. Having a major gold producer with Yamana’s caliber take a significant position in our Company is a major vote of confidence in the project and the team we have assembled. We hope to work together over the coming months and years.”
In 2020, FMAN stock has been able to remain rather stable. The last 5 months have also been a very active period for the gold stock. Shares were trading around $0.30 in March, and now consistently trade above $0.50. FMAN stock has also seen highs of over $0.80 this year. With the recent deal with industry heavyweight, Yamana, is FMAN set to capitalize on several fronts right now?
Also keep in mind what Will Randall, President & CEO of Freeman Gold, said earlier this quarter: “We intend to commence drilling during the first week of September with the goal of completing the twin and infill program by November 2020, and the maiden resource estimate before year-end.”
Top Gold Stocks To Watch: Yamana Gold Inc.
As you may expect, the next gold stock to watch is Yamana Gold Inc. (YRI Stock Report)(AUY). Yamana is a precious metals production company that primarily explores and produces gold and silver ores. Yamana operates mines in Canada, Chile, and Brazil. This recent deal with Freeman Gold may have acted as somewhat of a catalyst for Yamana gold stock. Price has continued jumping between September 8th to the 9th.
Yamana also released an exploration update on September 8th. The company reported success in its Minera Florida mine. In addition to this, it also reported that it will have the potential to “significantly expand mineral resource base and increase mine life”.
Its results at El Penon highlighted its expansion potential, and new mineralized areas were discovered at its Jacobina mines. This report in combination with its Freeman Gold deal may have triggered some bullish momentum for Yamana gold stock this week. Can this continue through the end of Q3
Top Gold Stocks To Watch: B2Gold Corp.
The next gold stock to watch is B2Gold Corp. (BTO Stock Report)(BTG). B2Gold is a gold company that focuses on producing precious metals at its 3 mines. The company has locations in the Philippines, Namibia, and Mali. These mines are the Feloka Mine, the Masbate Mine, and the Otjikoto Mine, and additionally an 81% interest in the Kiaka Project. On August 19th it was reported that despite the recent political crisis in Mali, the company will continue operating its mine.
At the beginning of 2020, shares of B2Gold stock were at $3.93 a share on average. Now on September 9th 2020, BTG stock price has climbed up to $6.59 a share. From the 8th to the 9th, BTG stock is up 3.61% a share. B2Gold’s second quarter earnings reported that it had missed estimates. Yet still, its bottom line significantly improved. B2Gold’s revenue of $442 million in the second quarter was 65% higher year over year. Will B2Gold stock be on your list this month?
Top Gold Stocks To Watch: New Gold Inc.
The final company on this list of gold stocks is New Gold Inc. (NGD Stock Report). New Gold is a gold company that develops and operates various mineral properties. The company additionally searches for silver and copper deposits. New Gold owns 100% interests in the Rainy River gold and silver mine in Canada, and New Afton gold and copper mine in Canada. Furthermore, the mineral explorer owns 100% interest in the Blackwater gold silver project in Canada, and the Cerro San Pedro gold silver mine in Mexico.
But now, New Gold has announced that it closed the sale of its Blackwater Project to Artemis Gold Inc. (ARGTF Stock Report). This deal was done for $190 million in cash consideration and an initial cash payment of $140 million with $50 million in cash payable on August 21st, 2021. On July 30th, New Gold also reported its second-quarter financial results.
This showed revenues of $271 million for the six month period. Also, total production was 98,079 gold equivalent ounces. The CEO of New Gold, Renaud Adams said, “We are very pleased with our overall performance in this unprecedented quarter, a quarter that included enormous challenges presented by COVID-19.” On top of all of this, NGD stock has been one of the few gold stocks to weather recent market volatility. While most mining stocks are trying to recover from last month’s pullback, NGD shares are making new 52-week highs.
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