Are These Mining Stocks On Your 2021 Watch List?
Mining stocks in 2021 have an interesting market history so far. When the first week of 2021 arrived, metal assets received quite an uptick. There is a couple reasons that this occurred. The first of which, is the realization that COVID is not going away soon despite the fact that a vaccine is being distributed. The $900 billion stimulus bill also was a factor in the price of gold stocks increasing in value the first week of 2021. Stimulus devalues the dollar which in turn had a positive effect on the price of gold. So then why did precious metal prices pull back in the second week of January?
Well, when we say pull back, it is more like back to where they were December 31st. Because the price of gold is still above $1,850 per ounce. There are a few steps that you may want to take before investing in mining stocks. The first of which is keeping up with all of the news in the sector, as well as world news. Looking at the volume of a mining stock could indicate if it is going to move up or down soon as well. Essentially, do not just blindly invest in mining stocks. Some think that there is no potential for mining stocks in the market. But this is simply not true, as many investors are making profit with mining stocks. So which are the top mining stocks to watch?
Top Mining Stocks To Watch
- Sandstorm Gold Ltd. (NYSE: SAND)
- NovaGold Resources Inc. (NYSE: NG)
- Seabridge Gold Inc. (NYSE: SA)
- Pretium Resources Inc. (NYSE: PVG)
Sandstorm Gold Ltd.
The first mining stock to watch is Sandstorm Gold Ltd. Sandstorm is a gold business that acquires gold and other metal purchase agreements and royalties. The agreements and royalties are purchased from companies that have advanced stage development projects. Additionally, Sandstorm will provide upfront payments for companies to acquire gold streams or royalties and can purchase a percentage of a mine’s production for the life of the mine. It currently has a portfolio of 191 streams and royalties. So what has Sandstorm’s performance in 2021 looked like?
On the day of January 12th, SAND stock price increased by about 0.30%. Its stock price as of the day is $6.86 per share on average. This mining stock was able to fully recover after falling hard last year when the market crashed. Consistent increases in the price of gold and silver have contributed to its recent success. The company recently announced record revenue in 2020. On January 11th Sandstorm released a report saying it sold 52,200 attributable gold equivalent ounces for $93 million in revenue for the 2020 year. It sold 15,800 attributable gold equivalent ounces in the three months ending in December 2020 alone.
Seabridge Gold Inc.
Now let’s talk about Seabridge Gold Inc. Seabridge is an acquisition and exploration based gold company in North America. The company seeks gold, silver, and copper ores. Primarily it operates the Kerr-Sulphurets-Mitchell property in Canada. It also operates various other properties throughout North America. Let’s see how the company has performed in 2021 so far.[Read More] 4 Mining Stocks To Add To Your January Watch List
SA stock price increased significantly throughout 2020. The company nearly became a penny stock in March, but it quickly recovered and grew to new recent heights. Now this mining stock sits at $20.50 a share on average as of January 15th. Just last month the company completed the acquisition of Snowfield Property from Pretivm Resources Toronto. So now we wait to see what is next for the company and which direction SA stock will move.
NovaGold Resources Inc.
Next up is NovaGold Resources Inc. This is a company that will explore and develop gold mineral properties in the United States. Currently the company has 50% interest in the Donlin Gold project which has 493 mining claims in Alaska. Back in its third quarter results, the company had a lot of positive things going on.
NovaGold has announced it will release its year end 2020 financial results on January 27th, 2021. In the last year, NG stock price has gone up more than $1 a share, at some points even reaching higher. The upcoming financial results will be very telling for the direction in which this company is going. For now, this is a mining stock to watch.
Pretium Resources Inc.
The final company is Pretium Resources Inc. As stated above, the company recently completed the sale of its Snowfield Property to Seabridge Gold. Pretium Resources is a mining business that will acquire, explore, and develop at its metal resource asset locations. The company’s operations take place in both North America and South America. Its primary minerals are gold, silver, and copper deposits. Its main project is located in British Columbia, at the Brucejack project. This project has 4 mining leases and 6 mineral claims that cover more than 3,300 hectares. Let’s look at its 2021 performance so far.
Like many other mining stocks, this mining stock was doing well the first week of 2021. Then the second week came along, and PVG stock price fell. But that doesn’t mean all hope is lost for this mining stock. This company is pretty much just moving based on metal prices at the moment.
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