Are These Mining Stocks Pulling Ahead?
This year, mining stocks have been performing rather well. The reason behind it is the large increase in price for minerals such as gold and silver. The pandemic did cause trouble at first for many of these companies, but many have now been able to come back and nearly fully operate. The election recently caused the price of the dollar to go down, which subsequently increased the price of gold and silver.
But then the news came out from BioNTech and Pfizer that they have a vaccine potentially 90% effective for COVID-19. This brought the price of gold down to $1,850, but not any lower. Now as of November 15th, the yellow metal has gone back up to $1,890 in price. Silver currently sits at $24.68 oz.
During times like right now where the economy is bad, people will hold assets like gold and silver as physical assets as opposed to money. The silver industry has seen a boost from the industrial use of the metal as well. A vaccine could take a while to distribute, so for now the news should not affect the price of gold too much. Let’s look at some mining stocks to watch as we continue through November.
Top Mining Stocks To Buy [or avoid]: B2Gold Corp.
B2Gold Corp. (BTG Stock Report) is a gold producer that currently operates mines in Mali, the Philippines, and Namibia. It has increased its evaluation and exploration assets in other countries like Finland as well. In its second-quarter earnings, the company completely missed estimates. Despite its bottom line improving, nothing else did at all. Let’s look at the company’s third-quarter results for 2020 now.
On November 3rd, the company reported its third quarter earnings. B2Gold stated a consolidated gold production of 248,733 ounces. This was a 17% increase year over year for the company. Its quarterly consolidated gold revenue was up 57% to $487 million, a new company record. In addition to this, its consolidated cash flow was up 79%. This resulted in BTG stock price going up, and it sits at $6 a share on average as of November 15th. That is why this company has made it on to this list of the top mining stocks to watch in November.
Top Mining Stocks To Buy [or avoid]: Kirkland Lake Gold Ltd.
Now let’s talk about Kirkland Lake Gold Ltd. (KL Stock Report). Kirkland Lake Gold is a mining company with a primary focus on acquiring, exploring, and operating different properties. These properties include the Fosterville Mine, Macassa Mine, and more. Most of its property is located in Australia and Canada. The company currently has an agreement with Newmont Corporation (NEM Stock Report) to assess its regional exploration opportunities on some properties.
Recently Kirkland Lake released its earnings for the third quarter of 2020, including the first 9 months of the year. The company announced that it brought in adjusted net earnings of $249.3 million, a 49% increase year over year. It also increased 14% from the previous quarter. The net cash from operating activities increased 52% to $431.1 million. Its cash at the quarter end went up 58% year over year. On the day of the release its stock price went up more than 6%, which showed positive momentum for Kirkland Lake. Only the future will tell what can happen to this gold stock if gold prices go up.
Top Mining Stocks To Buy [or avoid]: Endeavour Silver Corp.
The last company on this list is Endeavour Silver Corp. (EXK Stock Report). Endeavour Silver is a mining company whose primary focus is silver and gold mining. The company actively acquires, explores, develops, processes, extracts, and refines those metals at its properties. Its main properties are located in Mexico and Chile. Unfortunately, like many other companies it had to stop its mining operations, but now has recovered as 2020 has gone on. Let’s look at the company’s recent news.
Well, on the 5th of November Endeavour released its earnings reports for the third quarter of 2020. It reported net earnings of $0.5 million against net losses of $6.8 million year over year. Its earnings would have been hire, but its expenses of $1.6 million got in the way of this. Its metal inventory was also up too much. The company’s revenue increased 29% year over year to $35.6 million, and its total metal production was 1.8 million silver equivalent (AgEg). That number includes 932,837 oz of silver and 10,041 oz of gold. That is why Endeavour has made this list of mining stocks to watch. Now we will see how coronavirus relief efforts, and the upcoming presidency will affect the price of these metals in the future.
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