Can These Gold Stocks Rally This Week?
Gold stocks have been making some major moves in the past few months. Following the COVID pandemic, many investors have turned to gold as a way to avoid market volatility. While gold stocks may not have the upside potential in the short term that more volatile stocks may have, many believe that gold is a solid long term play. This is because gold stocks do not rise and fall in value like traditional stocks. Rather, the majority of gold stocks are pegged to the price of gold and climb or drop outside of general market trends, as a result.
When gold hit a high of $2,089.20 in August, many investors began to pay attention. With an election on the horizon and COVID cases rising outside of the U.S., investors believe that there may be some market turmoil in the near future. When geopolitical events strike, investors statistically turn to gold and gold stocks. Gold has historically been one of the most popular ways to store wealth.
Gold has something that is called intrinsic value. Unlike paper money where value is ascribed to it via the public’s trust in the government, gold itself holds a physical value. This means that regardless of inflation or world events, the shiny yellow substance will avoid becoming worthless. With that in mind, let’s take a look at some gold stocks that could show potential in September 2020.
Best Gold Stocks to Watch: Freeman Gold Corp.
Freeman Gold Corp. (OTC:FMANF Stock Report)(FMAN) is a mineral exploration company based out of Canada. The company has a claim to the well known Lemhi Gold Project, which is located in Lemhi County, Idaho. The project, which consists of 99 unpatented claims and 11 patented claims, has major potential to produce large quantities of gold.
Last year, the Fraser Institute ranked Idaho as No. 8 in the world in terms of its mining attractiveness. With over 2,500 acres of mining rights in Lemhi County, Freeman Gold has a lot of potential in the Idaho mining industry. In June of this year, Freeman Gold announced that it had staked 219 new claims on the Lemhi Project. While the new claims are only just beginning to be explored, early studies have demonstrated that land itself has shown a high concentration of gold.
Will Randall, President and CEO of Freeman Gold, has instilled a great deal of confidence in investors. After selling Project Lithium X for $265 million several years back, Randall moved into the gold sector. With 20 years of experience in mining, investors have shown faith in the company’s future under Randall.
Recently, Freeman Gold announced that it had acquired a back-in right from Yamana Gold Inc. for the Lemhi Project. When the back-in right was announced, investors received it with appeal. Not only does this de-risk the project, but it also brings Yamana’s expertise to the table. The deal results in Yamana holding a 5% stake in the company. Furthermore, Freeman reported that it acquired the Moon #100 and Moon #101 unpatented mining claims, located within the historical resource area of its Lemhi project. The Moon Claims are located towards the northern portion of the historical resource area in the immediate vicinity of historical drill holes 86065, 93002 and 93005 which contain significant gold mineralization including both broad (193.55 meters of 1.8 grams per tonne gold (‘g/t Au’)) and high grade (57.91 meters of 4.09 g/t Au) gold intercepts.
Best Gold Stocks to Watch: IAMGOLD Corp.
IAMGOLD Corporation (IAG Stock Report) is considered to be a mid-tier gold stock due to its market cap in comparison with larger gold stocks. In its Q3 2019 report, IAMGOLD showed a very solid balance sheet. This helped to inspire a great deal of confidence amongst investors. The balance sheet, which showed a net cash amount of almost $230 million, means that IAMGOLD is in a strong position to continue growing in the near future. On August 6th, IAMGOLD announced its Q2 2020 results.
President and CEO of IAMGOLD, Gordon Stothart, stated that “we issued solid operating results for the second quarter of 2020, demonstrating strong operating cash flows on increased margins, and further improvement to our already strong balance sheet.”
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The company also stated that it aims to produce gold at a cash cost of around $940 per ounce. This is lower than many other major gold producers, which means that higher margins could be on the horizon. Despite the effects of COVID on the mining industry, IAMGOLD has been able to push through with a new strategic plan. This includes new safety restrictions. It also includes a “comprehensive behavior-based safety program.”
Best Gold Stocks to Watch: Almaden Minerals Ltd.
Almaden Minerals Ltd. (AAU Stock Report) is an exploration and mining company that works in both Canada and Mexico. While Almaden does mine silver and copper, the company is best known for its work as a gold mining company. The company reportedly owns 100% of the interest in the Ixtaca Project. This project alone spans over 7,200 hectares of land in Puebla State, Mexico.
Based out of Vancouver, Almaden Minerals has been working heavily on the development of the Ixtaca Project. Recently, Almaden announced that it had highlighted new goals for the Ixtaca Project. The goal is to produce around 7 million ounces of silver and 108,500 ounces of gold in the first six years. With an initial capital investment of roughly $175 million, Almaden aims to produce silver and gold at $11 and $850 per ounce respectively.
J. Duane Poliquin, Chairman of the company stated that “we believe that with the Ixtaca discovery, we identified a new epithermal district in Mexico. We are excited to return to early stage discovery efforts on this property. It will also be gratifying to work once again with members of the local communities as field activities will again provide some local employment opportunities as they ramp up over time, opportunities which are sorely needed in the area.”
While we await the announcement of the next stages of this operation, Almaden continues to look like it has a lot going for it at this time.
Best Gold Stocks to Watch: Taseko Mines Ltd.
Taseko Mines Ltd. (TGB Stock Report) is a mining company that works on the acquisition, development, and operation of several mines in both Canada and the U.S. Similar other gold mining companies, Taseko does not only mine gold. Rather, it also develops copper, molybdenum, niobium, and other minerals. But, Taseko is primarily a producer of gold.
On Monday, September 14th, TGB stock posted a gain of 5.7% during the trading day. With a market cap of roughly $229 million, Taseko is by no means one of the largest gold stocks to watch. Despite this, Taseko has shown a revenue amount that rivals some major gold companies. In 2020, Taseko Mines forecasts around $325 million in yearly revenue. This is a 10% increase over the previous year. Year to date, Taseko Mines stock is up around 130%.
Taseko Mines is the owner of the second-largest copper mine in Canada. The demand for copper has steadily increased over the past decade, making Taseko a player in the mining industry. In addition to the Gibraltar Mine, Taseko wholly owns the Florence Copper Mine, Yellowhead Mine, and the Aley Projects. All of these are late-stage mining operations that are continuously producing resources to benefit the company’s net revenue. With this, Taseko Mines remains a leader in the mining industry.
These mining stocks represent several unique opportunities for investors to capitalize upon. There are plenty of options for finding the best gold stocks to watch. These companies have straightforward plans for future success. As always, investors should do the research to make sure that the individual mining stock is right for them. With that in mind, there remains a great deal of potential in the mining sector moving forward.
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