Looking for mining stocks to watch in May? Check these out
Searching for mining stocks to buy can be a simple process if you know what to look for. The first step is to figure out what type of investor you are. If you are a short term investor or swing trader, you may want to look at the most recent and trending news only. If you are long term investing in mining stocks, then looking at a company’s long-term outlook, financial reports, rumors, and more can all be useful to you.
Once you have found a mining stock to watch, how do you know when to invest? Let’s say a company’s stock price is going up but it has low volume. This could potentially suggest that this stock will go lower rather than continue to move higher. Things like this can help decide when the right time to invest in mining stocks is.
The pandemic is another factor affecting mining stocks right now. As COVID-19 continues to grow in numbers in other countries, it’s hurting the global economy. At the same time the United States and China reopening has caused some metals like iron ore, gold, silver, and copper to increase in value. Gold just reached over $1,800 per ounce, which it has not done in months.
Copper prices are soaring due to increased industrial demand. The metal is also seeing momentum because of its ties to the electric vehicle market. Most electric vehicles use hundreds of pounds of copper. As a result, many copper stocks are performing very well at the moment. With all of this in mind, let’s look at three mining stocks to watch in May.
Mining Stocks To Watch
- Gold Fields Limited (NYSE: GFI)
- AngloGold Ashanti Limited (NYSE: AU)
- Turquoise Hill Resources (NYSE: TRQ)
Gold Fields Limited (NYSE: GFI)
After gold prices increased in the last week, companies like Gold Fields Limited have seen the benefit of this. Gold Fields Limited is a gold company that offers and produces a diverse set of resources and reserves. Gold Field’s assets are in Chile, South Africa, Australia, Ghana, and Peru. The company nowadays has 9 operating mines with an annual gold equivalent production of 2.2 million ounces.
The company’s stock price is moving primarily because of rising gold prices. That doesn’t mean Gold Fields isn’t releasing updates of its own. On May 6th, the company stated that it is currently on track to meet its 2021 guidance. This comes after reports that its gold production fell quarter over quarter. GFI stock price has been increasing alongside the price of gold itself. Now we wait for the next update from GFI or the next price increase from gold itself. With this in mind, will you add Gold Fields to your list of mining stocks to buy?
AngloGold Ashanti Limited (NYSE: AU)
AngloGold Ashanti Limited is a mining stock that produces gold, silver, uranium, and sulpheric acid. It actively operates ten operations and three projects in eight countries located in Africa, the Americas, and Australia. This gold stock has been increasing in value due to the rising gold prices just like Gold Fields Limited mentioned above.
Since AngloGold has no apparent updates that are affecting its stock price, how do you know if it’s the right time to invest? Part of the reason that this company’s stock price has increased, is due to rising gold prices. In a recent quarterly report put out on May 10th, the company announced that its all-in sustaining costs increased. Its production at some of its mines increased quarter over quarter as well. The company’s net debt declined 43%, and its adjusted EBITDA grew by 3%. With this information in mind, is AU stock right for your watchlist?
Turquoise Hill Resources Ltd. (NYSE: TRQ)
Turquoise Hill Resources Ltd. is a mining company that explores for gold, copper, and silver deposits. Its main operation is the Oyu Tolgoi copper-gold mine in Southern Mongolia. Gold, copper, and silver are all metals that have experienced positive momentum in the last few weeks. For this reason TRQ stock has experienced upside in the market.
The company recently resumed shipments to China, after it declared force majeure on some Chinese contracts back in March because of COVID-19. This could help the company increase its business once again.
Now we are right on the verge of the next update from Turquoise Hill Resources. On May 12th after the markets close, the company reported its first-quarter financial results. The company reported its income increasing to $332.1 million compared to $19 million the previous year. This is a huge increase for Turquoise Hill. Its revenue increased 302.8% year over year from $130.7 million to $536.5 million as well. This is reflected by higher production and higher realized copper and gold numbers. With this info in mind and its earnings coming up, will TRQ make your list of mining stocks to watch?
What Will Happen To Mining Stocks Now?
As earnings season continues, we are seeing which companies are moving up in value after positive reports. The first quarter of 2021 seems to be hit or miss. Despite having negative financials, some companies have gone up just because their price for precious metals was realized higher. For example, if a company’s revenue and net sales fell year over year, sometimes a stock can remain steady if realized gold or silver prices are high.
As many places like the United States and China reopen, economies will begin to recover. This could help certain materials rise in price. Copper could go up because of increased retail, industrial, and EV sales. Gold could go up due to higher retail sales as well. This goes the same for silver, which has risen in the past due to increased industrial demand. So which mining stocks will make it onto your watch list?
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