Mining Stocks To Watch In May
When it comes to investing in mining stocks, traders have a lot of options. Often many will go for gold stocks, which is one of the most commonly traded mining assets. This yellow metal reached a new record high last year. An alternative to gold may be something like silver stocks, which often perform similarly but trade at lower prices.
There are also copper stocks, which have been performing better than usual recently. This has to do with increased demand and also a boom in electric vehicles. For instance, your average vehicle uses about 18-49 pounds of copper, but electric vehicles require a lot more of the metal to use in their technology. A traditional full-electric vehicle can use about 183 pounds of copper. A fully electric bus can use as much as 800 pounds of copper. Due to its lower cost and high conductivity, it is not likely to be replaced by another metal any time soon.
For similar reasons, lithium stocks are high performers in 2021, as well. Lithium ion batteries are the only battery used in production electric vehicles right now. This material will often perform well in tandem with EV companies like Tesla (NASDAQ: TSLA).
Developing a strategy for investing in mining stocks can help a lot in the process. Staying up to date on what is going on in the world is very important as it often affects mining stocks. Things like housing reports, jobless claims, and filings all impact the price of these assets because of their effect on the economy. If your plan is to invest long-term, it is wiser to choose a company that has sound fundamentals.
When looking at a short-term day or swing trades you can focus on more technical catalysts. This can range from recent headlines or industry momentum. When done right, investing in mining stocks can be a profitable venture. Especially with plenty of minerals increasing in price. With this in mind, let’s look at three mining stocks to watch this week.
Mining Stocks To Watch
McEwen Mining Inc. (NYSE: MUX)
McEwen Mining is a company that will explore for, develop, produce, and sell various resources. These include silver, gold, and copper among others. It owns 100% interest in the El Gallo project, Fenix project, Black Fox mine, and plenty more. Recently community members near its El Gallo project raised concerns about the mines. However, McEwen has restored the mine with a successful resolution and reached a new 10-year agreement. This is important as this mine is highly profitable for the company.
In other news for McEwen mining, the company added two new senior management employees on April 13th. Chairman and Chief Owner of McEwen, Rob McEwen stated, “I am very pleased to welcome Steve and Ruben. With these additions we are reuniting proven performers. Peter Mah, our COO, and I worked closely with Steve at Goldcorp Inc. and both were an important part of the team that made Goldcorp’s Red Lake mine such a resounding success.”
Why is McEwen on the list of mining stocks to watch right now? The company released its first quarter 2021 production results. It reported 23,300 gold ounces and 493,000 silver ounces. Its gold equivalent ounces fell by 500 ounces. This was not a huge change for the company. Now McEwen will be releasing its first quarter financial results on Monday, May 10th. In the last month MUX stock has increased by about 18%.
Galiano Gold Inc. (NYSE: GAU)
After exceeding its annual production guidance last year, things have been looking favorable for Galiano Gold Inc. The company owns gold properties including the Asanko Gold Mine in Ghana, West Africa. Now, it is performing well on a day where many other gold stocks are underperforming. Why is this happening?
This is likely due to Galiano Gold reporting its preliminary first quarter operating results on April 13th. Some of its highlights include continued cash distributions, excellence in safety, and consistent production. Galiano generated $110.6 million in gold revenue, selling 62,925 ounces at $1,757 per ounce on average. Much of this success can be attributed to Galiano’s Askano Gold Mine. This is the type of progress that shareholders like to see when operating results are being released.
CEO Greg McCunn stated, “The Asanko Gold Mine delivered another solid operational quarter and with continued metal price strength was in a position to make a $10 million distribution to the JV partners, allowing Galiano’s balance sheet to remain strong with approximately $65 million in cash and receivables as at March 31st and no debt.”
Great Panther Mining Limited (NYSE: GPL)
In the last month, this mining stock has increased by about 2.3%. Great Panther Mining Limited is a mining corporation searching for silver, gold, lead, copper, and zinc ores at numerous mineral deposits. Great Panther’s mines include all of the Tucano gold mine in Brazil, and various properties in Mexico, among others.
On April 13th Great Panther Mining reported its first quarter 2021 production results. Its total metal production was 30,556 gold equivalent ounces comprised of 24,978 gold ounces, as well as 360,070 silver ounces. The company also successfully completed its annual maintenance at the Tucano gold mine. This included replacing the primary crusher and realignment of the SAG mill motor.
Great Panther still has COVID-19 to deal with, but CEO Rob Henderson claims the company is on track with its proposed guidance for the year. Henderson added, “Our safety protocols are being meticulously executed in order to protect our workforce and the communities that we operate in. As previously stated, the first quarter was planned to be a low production quarter due to heavy stripping.” Safety protocols are important right now because as much as one COVID infection could shut down an entire mine temporarily.
As mentioned before, GPL stock has grown quite well in the last month. Other than reaching a one-month high of $0.84 per share, its stock price has remained in the $0.79 to $0.80 per share range for the second half of April. Over the last year, shares of GPL stock have jumped over 60%.
Should Mining Stocks Be On Your May Watch List
What we know right now is that metals such as gold and silver are staying at similar price points as 2021 continues forward. However, other metals, including ones not mentioned here like Palladium, have gained steam in more recent months. Obviously, companies that focus on mining them are likely to gain attention. We have seen an uptick in manufacturing and new advancements in things like electric vehicle industry expansion. With the growing demand for things like rare earth metals, the mining industry will likely be in the spotlight for a while. The focus shouldn’t be solely on gold or silver but other metals as well.
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