How Is The Performance Of These Mining Stocks?
There have been many factors contributing to the increase in price of mining stocks. For example, when the election results were announced gold prices went up due to the dollar moving lower. In addition to this recent news, the companies Pfizer Inc. (PFE Stock Report) and Moderna Inc. (MRNA Stock Report) have both released vaccine news recently.
This brought the price of gold down, but not under $1,850. This news is good for the world but bad for gold, as gold is used as a physical asset when the economy is bad. But a vaccine will not realistically be a widely distributed thing for a while. Now retail sales data for the US has been released on November 17th.
This sales data from the US Commerce Department announced that retail sales went up 0.3% in October, which was an increase of 1.6% from September. Underperforming retail sales will continue to help gold. Although some gold futures went up to daily highs, the price of gold is still at $1,886. Now let’s look at some mining stocks that have been performing well in 2020, and have potential in the market.
Top Mining Stocks To Watch: Yamana Gold Inc.
The first company to talk about is Yamana Gold Inc. (AUY Stock Report). Yamana Gold is a producer of precious metals that will actively explore for and produce gold and silver ores. It holds interest in the Cerro Moro MINE, Malartic mine, Minera Florida mine, Jacobina mine, and more. Its mines are located in Canada, Chile, Brazil, and Argentina. Let’s talk about the financial results that the company released on October 29th first.
So in Yamana Gold’s third quarter results its free cash flow went up more than 300% year of year, at the highest point since 2015 at $215 million. Although its net earnings fell year over year because of the pandemic. The company’s net debt decreased as well. On November 1st, Yamana announced that it will acquire the Wasamac property and the Camflo property and mill from Monarch Gold Corporation.
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This deal was for $152 million CAD including cash and shares. This could give Yamana access to the project’s existing proven and probable mineral reserves of 1.8 million ounces of gold. That is why this is such a big acquisition for Yamana Gold. AUY stock price is down at the moment due to gold prices, but is still near one year highs.
Top Mining Stocks To Watch: Eldorado Gold Corporation
Next up is Eldorado Gold Corporation (EGO Stock Report). Eldorado Gold Corporation is a mining company that will explore, discover, acquire, develop, produce, sell, and reclaim all types of mineral products. The company finances as well. Eldorado primarily focuses on gold, silver, lead, zinc, and iron ores. It currently operates 5 mines: Kisladag and Efemcukuru in Turkety, Lamque in Canada, Olympias and Stratoni in Greece. Let’s look at the recent news from Eldorado.
On November 13th, the company provided an update on its exploration projects. It said that new high grade drill intercepts at Lamaque show resource growth. At Efemcukuru, its drill results have confirmed continuity of high grade gold in the mineralized shoots. At Stratoni, it discovered a lower massive sulfide lens of more than 20 meters in thickness bnelow its current mine developments. This shows large resource growth potential for this, which will be tested soon.
The CEO of the company, George Burns said, “These results from our brownfields programs continue to demonstrate the outstanding exploration potential at our operations”. It will be interesting to see the company’s next exploration update and how it will affect this mining stock price.
Top Mining Stocks To Watch: Barrick Gold Corporation
Now let’s talk about Barrick Gold Corporation (GOLD Stock Report). Barrick Gold is one of the largest mining companies that will explore, develop, produce, and sell gold and copper. It owns a variety of different mines in the United States, Chile and more. GOLD stock price has been able to increase by a lot. This is a very good performing gold stock. Let’s see what recent news and advancements have come from Barrick Gold.
The most recent announcement from the company comes in the form of its third quarter financial results. The company reported $882 million of net earnings which was down from the previous year. Despite this, its adjusted earnings went up more than 173% year over year. Barrick also increased its sales by 32.2% from the previous quarter in 2020.
Its gold production fell due to pandemic related closures and slowed down production. This happened with its copper production too. Barrick’s cash and cash equivalents rose 97.3% year over year still. GOLD stock price is down due to current gold prices but it’s up very much this year.
Top Mining Stocks To Watch: Hecla Mining Company
The last company on this list of mining stocks is Hecla Mining Company (HL Stock Report). Hecla Mining Company focuses on discovering, acquiring land, developing the land, and producing a variety of precious metals and base metals. It primarily offers unrefined gold and silver bullion bars, lead, zinc, and more. The company owns the Greens Creek Mine, Lucky Friday mine, Casa Berardi mine and more. Let’s check out the recent news from Hecla.
On November 9th, the company released its long-awaited financial results. It was here that Hecla announced a 24% year over year sales increase to $199.7 million. It produced 3.5 million ounces of silver and 41,174 ounces of gold. Because of this, Hecla reported a record adjusted EBITDA of $75,701. Some of Hecla’s mines are ahead of schedule and or improving at the moment. The company expects to strengthen its balance sheet and increase exploration in the coming months.
HL stock price has gone up significantly in 2020, from $3.40 on average to $5.30 on average. These mining stocks are showing that the sector has grown strong this year. Even when gold or silver prices fall, these mining stocks remain higher than at the start of 2020.
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