Will These Mining Stocks Increase In Value?
Mining stocks have had quite an interesting take in the market in the last year. These assets were going to have a seemingly normal year in the market. That was until the pandemic arrived and it changed everything. The economy quickly fell with the value of the dollar in March 2020. This was just about one year ago now. Some of the most common mining stocks to watch include gold and silver stocks.
The price of gold and silver has rallied significantly in the last year. Both of these precious metals reached new record highs in 2020. This momentum brought many new traders to mining stocks that may have not considered them before. But there is also many other types of mining stocks that have been trending in the market. Some companies will focus on mining platinum group metals, rare earth metals, copper, steel, and many other metals.
But one of the most well-performing sections of the mining stock sector happens to be lithium stocks. Lithium stocks have seen a massive increase in price in the last few years. Lithium ion batteries are used in electric vehicles and a variety of electronics. As you know, electric vehicles have increased in market share by a huge margin in the last decade. Companies like Tesla have produced millions of electric vehicles.
The amount produced every year goes up over time. This in turn causes lithium stocks to perform well as those batteries are key components in EVs. There are so many different types of mining stocks to choose from, so how do you know which to choose from? Well, let’s simplify the process and highlight four mining stocks to watch in March 2021.
Top Mining Stocks To Watch
- Compañía de Minas Buenaventura S.A.A. (NYSE: BVN)
- Osisko Gold Royalties Ltd. (NYSE: OR)
- Pretium Resources Inc. (NYSE: PVG)
- American Resources Corporation (NASDAQ: AREC)
The first mining stock to watch is Compañía de Minas Buenaventura S.A.A. This company is a precious metal company that will explore, mine, and process various different minerals. These include gold, silver, lead, zinc, and copper metals. Its mining operations take place in the United States, Europe, Asia, and Peru. Compañía de Minas Buenaventura owns a variety of mines in all of these places. Compañía de Minas Buenaventura also produces manganese sulphate for use in agricultural and mining industries, as well as providing electrical transmission services. Let’s take a look at the company’s advancements in 2021 so far.
On February 25th, the company announced its fourth quarter and full year 2020 results. The company stated that its EBITDA fell year over year, and its net less grew year over year. This was not good for the company obviously. But BVN stock price has been able to hold its own in the last year. BVN stock price is currently near where it was before the pandemic happened at the moment. So despite the setbacks caused by the pandemic BVN stock still has gone up at many points in the market.
Osisko Gold Royalties Ltd.
Next up on this mining stock list is Osisko Gold Royalties Ltd. Osisko is a gold company that acquires and manages precious metal royalties and streams. Its assets include 5% net smelter return royualties on the Canadian Malartic mine, and many more as well. Its possessions total 135 royalties, streams, and precious metal offtakes in North America. So how has the corporation been performing in March 2021 so far?
Like many other mining companies, Osisko recently just reported its 2020 income and 2021 guidance. Osisko’s cash flow reached new record highs of $108 million, an 18% increase year over year. Sandeep Singh, the President and CEO of Osisko said, “Despite mine shutdowns associated with COVID-19 in the first half of the year, Osisko achieved record revenues and cash flows.”
Pretium Resources Inc.
Now let’s talk about Pretium Resources Inc. Pretium Resources is a mining company that acquires, explores for, and develops precious metal resource properties. Its operations take place in both North America and South America. Primarily, Pretium looks for gold, silver, and copper deposits. Its main project is located in British Columbia, at the Brucejack project.
Pretium Resources joined the club of financial reports on February 25th. It announced its 2020 operating and financial results. Pretium also announced that it achieved its guidance for 2020, and recorded a record high free cash flow. The CEO and President Jacques Perron said, “2020 proved to be an exceptionally challenging year, yet thanks to the hard work and perseverance of our team we were still able to achieve both our financial and production guidance, for the first time in the Company’s history, as well as improve our Mineral Reserve reconciliation compared to previous years.”
American Resources Corporation
The final mining stock to watch is American Resources Corporation. American Resources Corporation is a company that will supply raw materials for the global infrastructure marketplace. American Resources will extract and process metallurgical carbon that is used in steelmaking. This rare earth mining company has experienced a lot of positive growth in the last year. Let’s check up on how AREC stock is performing in 2021 so far.
Before the pandemic started AREC stock price was at $0.82 a share on average. Now in March 2021, that number has significantly changed. AREC stock price currently sits at $4.81 a share on average as of March 3rd, 2021. At one point during 2021 back in February, this mining stock reached above $7.32 a share on average. It will be interesting to see what direction this mining stock moves in as we continue through March 2021 in the sector.
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