Top Gold Stocks To Watch In 2020
Gold stocks have been in the eyes of investors a lot more this year. The companies focus on mining and refining gold, as well as acquiring land for these processes as well. Gold’s price moves based on the supply and demand of the yellow metal. In recent times, gold has reached record highs, which in turn is causing many gold stocks to do the same.
But at the start of the year, gold companies had to slow or stop production altogether for an amount of time. It seems like these companies have started operations up to near-normal levels of production which is helping the price of gold. What’s also helping gold is the dollar cooling off a bit.
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Over the last 2 weeks, front-month gold futures have managed to bounce back by roughly 4%. This sharp rebound has definitely helped and now investors are eyeing gold once again to see if this trend can persist. Now let’s look at 4 gold stocks that have been trending in the market, and could potentially be on your watch list.
Gold Stocks To Watch In 2020: Freeman Gold Corp.
First, let’s talk about Freeman Gold Corp. (CSE FMAN Stock Report)(OTC FMANF). Freeman Gold is a gold company that has a focus on mineral exploration in many locations. The company acquires, explores, and develops a variety of different mineral properties including the Lemhi Mine. The Lemhi Project is comprised of 99 unpatented claims and 11 patented claims subject to certain existing encumbrances, which have over 10,000 meters of historic drilling. Of the 99 unpatented claims, 53 are owned directly by Lower 48 and 46 optioned claims are held subject to an agreement with BHLK-2 LLC.
Furthermore, Lemhi has over 355 holes drilled in the deposit area. Furthermore, the historical data suggests the potential for gold discovery in the area. According to the company, the Lemhi Gold Project has the potential to develop a 1.5 to 2M ounce plus resource. Furthermore, the peer comparable demonstrates that there is a premium for a US-based gold company with 1.5-2m oz. with grades around 1 gram per ton.
In recent times, Freeman Gold acquired back in-rights from Yamana Gold Inc. (AUY Stock Report) for the Lemhi Project. Freeman gave Yamana Gold more than 4 million common shares in this deal. In addition to this recent piece of news, during the second half of the third quarter, 2020, Freeman acquired the Moon #100 and Moon #101 unpatented mining claims, located within the historic 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.
Gold Stocks To Watch In 2020: Barrick Gold Corporation
Next up on this list of gold stocks to watch is Barrick Gold Corporation (GOLD Stock Report). Barrick Gold is one of the largest gold producers in the world. The company operates gold mines in 12 different countries and reported at the end of 2019 that it had 71 million ounces / 13.5 billion pounds of proven and probable gold and copper reserves.
On October 5th, it was announced that Barrick Gold has sold the Eskay Creek project to Skeena Resources. As a part of this deal, Barrick has 24,075,000 Skeena common shares. If warrants are fully exercised then Barrick will hold 35,325,000 common shares. That equates to 17.2% of Skeena’s issued and outstanding common shares. In addition to this, a 1% NSR royalty has been placed on the entire land pacakage.
Back in early September, Barrick Gold and Augusta Group joined Bullfrog Gold Corp. in Nevada. Essentially, Bullfrog will acquire all of Barrick’s assets in the Bullfrog mine area, adding 1500 acres to its current position. Barrick will own 15.9% and Augusta will own 31.9% of Bullfrog’s shares after the transaction is closed.
Gold Stocks To Watch In 2020: New Gold Inc.
Now let’s talk about the next company on this list, New Gold Inc. (NGD Stock Report). New Gold is a gold company that develops many different mineral properties in Canada and Mexico. The company searches for silver, copper, and gold deposits at its locations. New Gold owns 100% interest in Rainy River, Afton, formerly the Blackwater Project, and Cerro San Pedro mines in both of those countries. Let’s talk about some recent news for this gold stock to watch.
New Gold sole its Blackwater Project to Artemis Gold back in August. The deal took place on the 21st, and was completed for $190 million cash, $140 million up front and $50 million by the same date the following year.
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This was noted as a key transaction for the company that will continue exposure to this Blackwater property. NGD stock price has been able to go significantly in 2020. Last month, CIBC upgraded New Gold to Outperform from Neutral. It also gave NGD a C$3.43 price target, up from its previous target of C$2.48.
Gold Stocks To Watch In 2020: Sibanye Stillwater Limited
Finally, Sibanye Stillwater Limited (SBSW Stock Report) rounds out this list of gold stocks. The company produces gold and platinum group metals. These include palladium, platinum, and rhodium projects. Iridium, nickel, copper, chrome, and more are mined by the company as well. It actively operates in South Africa, United States, Zimbabwe, Canada, and Argentina.
It seems as if the pandemic, actually created a lot of hype for gold. This helped South Africa’s markets specifically a lot. That is where Sibanye has been able to benefit in 2020. The most recent news from the company on October 2nd, but it was just an announcement of some management changes. In its second-quarter results released on August 27th, it announced record revenue of $531 million for the company.
Despite falling due to the pandemic, SBSW stock has gone up in 2020. In fact, it has increased from $10.22 at the start of the year to $10.98 a share as of October 5th, a 7.43% increase in stock price.
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