Are Mining Stocks Performing Well?
Mining stocks have had an interesting 2021 so far to say the least. There are many reasons that mining stocks are moving in the market at the moment. One of the main things that has been moving mining stocks is the recent $900 billion stimulus bill that was passed by the government. This bill gave $600 stimulus checks to citizens, as well as provided small business relief, rent relief, and vaccine distribution funds. Now, Biden has announced a $1.9 trillion economic rescue package. This includes $1,400 stimulus checks, unemployment aid, rental assistance, and much more. But even with this announcement, gold prices have not gone back up. In fact, on the day of January 15th gold prices fell nearly $20 per ounce.
When this happens, it can make investors shy away from investing in mining stocks. But the truth of the matter is, there are still many great mining stocks to watch. The economy will not recover for a long time as a result of the pandemic. This has caused some analysts to predict that gold prices could even surpass $2,500 per ounce. This sounds ambitious, but look at what happened last year, with the price of gold moving over $2,000 per ounce. Because of the rising COVID cases and lack of economic recovery, gold has been able to remain over $1,800 per share. So which mining stocks show the most potential in the market? Well, let’s have a look at four mining stocks that have been trending in the market. These companies showed positive performance throughout 2020 and could carry that momentum into the new year.
Top Mining Stocks To Watch
- Southern Copper Corporation (NYSE: SCCO)
- Freeport-McMoRan Inc. (NYSE: FCX)
- Royal Gold Inc. (NASDAQ: RGLD)
- Newcrest Mining Limited (ASX: NCM)
Southern Copper Corporation
First up on this list of mining stocks is Southern Copper Corporation. This is a mining company that will explore, smelt, and refine copper. It does these operations in Mexico, Chile, Peru, Argentina, and Ecuador. It mines copper ore, smelts copper concentrates, refines, and produces it. The company actively has interests in 37,622 hectares of land in Peru, 147,974 hectares in Mexico, 63,453 hectares in Argentina, 42,615 hectares in Chile, and about 7,200 in Ecuador. What has Southern Copper been up to in 2021?
One month ago, SCCO stock was at $61 a share on average. Now as of January 15th, SCCO stock price is at $69 a share on average. Just one year ago this mining stock was at $43 per share. This company has not released any recent statements. So its stock is primarily moving based on the price of precious metals such as copper and silver by itself. So it will be interesting to see what the next update from the company is, as it could potentially define the future of SCCO stock price.
Next up on this mining stock list is Freeport-McMoRan Inc. Freeport-McMoRan is a mining corporation that holds property in North America, South America, and Indonesia. The company searches for copper, gold, molybdenum, and silver at its mines. Additionally, it pursuits oil and gas. As of December 31st 2019, the company had consolidated recoverable proven and probable mineral reserves of 116 billion pounds of copper and 29.6 million ounces of gold. And in 2020, this mining stock grew from just $12 per share to $30 per share on average. So let’s look at FCX stock’s recent performance
FCX stock is at $30.35 a share on average as of January 15th. Although on the same day, it fell about 5% from $32 a share. Just like many other mining corporations at the moment, this one has not released any very recent updates. Meaning that FCX stock’s movement is primarily based on the price of precious metals themselves. But seeing the strength FCX stock had in 2020, shows that it could potentially be a good pick in 2021.
Royal Gold Inc.
Now let’s talk about Royal Gold Inc. Royal Gold is a royalty based gold company that acquires and manages royalties and metal streams. The company accomplishes this for stream or royalty interests. Royal Gold’s target minerals are are gold, silver, copper, zinc, nickel, lead, and cobalt. Currently the company has 189 locations on 5 continents. Royal Gold operates 41 mines and 17 developmental stage projects. How has Royal Gold fared throughout 2021 so far?
Well, on January 13th the company released an update for its second quarter fiscal 2021 operations. It announced that it sold 57,500 gold equivalent ounces, consisting of 44,500 gold ounces, 461,000 silver ounces, and 1,800 tons of copper. This was higher than the figure that it sold in the first quarter fiscal 2021, of 56,000 gold equivalent announces. Its stream sales also rose higher than its guided range. As of October 2nd 2020, Royal Gold had $800 million available and $200 million outstanding under the current credit facility. Its focus is to allocate its solid cash flow to dividends, reducing debt, as well as investments. RGLD stock price is at $104 a share on average as of January 15th.
Newcrest Mining Limited
The final company on this mining stock list is Newcrest Mining Limited. This is a mining company that explores, develops mines, operates mines, and sells gold and copper. The company additionally searches for silver deposits as well. Newcrest owns and operates mines and projects mostly located in Australia and Papua New Guinea. The company holds interest in a project located in Canada as well. Let’s take a look at its recent market performance in 2021.
NCM announced that its Havieron Project received regulatory and funding approval on January 12th. The Newcrest Board approved a $112 million USD sum to construct the box cut, exploration decline, and associated surface infrastructure at the Havieron Project in West Australia. NCM stock price is at $26.68 a share on average as of January 15th. This mining stock is increasing in value more than usual at the moment.
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