Top Mining Stocks To Watch
In 2020 the COVID-19 situation made a lot of mining stocks achieve new record highs. When the economy was crashing, metals and materials prices rose. Increased demand and more shortages were the primary reason for the rally. When talking about mining stocks, most will look at gold stocks and silver stocks first. Both of these assets reached new record high prices last year.
So you might be wondering where things stand now in 2021. At the very beginning, mining stocks took off but then pulled back. For a while, gold and silver assets could not reach past key price points. This is when copper, lithium, iron ore, and other mining stocks took an opportunity to rise up in the market. Now in May 2021, gold is very close to passing the $1,900 per ounce price point. It is experiencing some negative as it reached $1,899 per ounce but was unable to reach that price target.
In general, gold prices are currently much higher than they’ve been for the last few months. So why has this happened? This has to do with vaccine distribution and worldwide reopening. As the world reopens, sales for gold are expected to increase a lot. In many United States places, there are little to no restrictions already causing retail to boom. At least 40% of the U.S. population has been vaccinated already. This doesn’t mean the world is reopening as soon, for example, take a look at India that has skyrocketing cases. Until the virus is completely defeated it will be hard for world economies to recover. With all of this in mind, let’s take a look at three mining stocks that could make your watchlist.
Top Mining Stocks To Watch
- Galiano Gold Inc. (NYSE: GAU)
- Americas Gold and Silver Corporation (NYSE: USAS)
- Endeavour Silver Corp. (NYSE: EXK)
Galiano Gold Inc. (NYSE: GAU)
Just like traditional gold stocks, gold penny stocks like Galiano Gold Inc. have been performing well in the market too. Galiano Gold is an exploration, development, and production company based out of Canada. The company owns gold properties such as the Asanko Gold Mine in Ghana, West Africa. This company experienced positive momentum as the result of rising gold prices.
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Now you may be wondering what is causing Galiano shares to be higher in the market. The more obvious reason has to do with rising gold prices in May. But the company just released its first quarter results for 2021 in May. The CEO of the company Greg McCunn said, “The Asanko Gold Mine had another solid operating quarter, delivering according to plan, enabling a distribution of $10 million to the JV partners. We expect production and costs to be weaker in Q2 as we are undertaking waste stripping of Cut 3 at Akwasiso and will be supplementing the Esaase ore feeding the mill with low grade stockpiles.”
Since the company reported these earnings, its stock price has moved up in the market. Before the pandemic, GAU stock was under $1 per share. Now Galiano stock is at $1.30 per share on average as of May 28th. With all of this in mind, will GAU make it on to your mining stock watchlist?
Americas Gold and Silver Corporation (NYSE: USAS)
The next mining stock to watch is Americas Gold and Silver Corporation. Americas Gold and Silver Corporation is a gold and silver mining company, but also explores for lead, zinc, and copper. It will acquire, evaluate, explore, develop, and operate mineral properties in North America. It holds 100% interest in 67 mining concessions in Mexico, as well as many other properties.
On May 17th Americas Gold and Silver Corporation reported its first quarter 2021 results. Speaking on one of its properties, President and CEO Darren Blasutti said, “At Relief Canyon, following months of study, we have decided to transition to run-of-mine heap leaching to simplify the flowsheet and improve performance. While the ramp-up has been more difficult than the Company envisioned, I believe this change will lead to better economics and enhanced profitability for the operation.”
In 2021, USAS has been trending downwards. But now on May 28th, the company’s stock price is up 3.57%. It is unknown if rising gold and silver prices will cause USAS to go up or down in the future. For now, will you add this company to your mining stock list?
Endeavour Silver Corp. (NYSE: EXK)
Endeavour is a mining stock that focuses on acquisition, exploration, and development in regards to finding silver. It will also extract, process, and refine the silver metal too. This is done at two mines owned by the company that are located in Chile and Mexico. This company has gained a lot of momentum in the last year.
The company announced that its drilling intersected high-grade gold and silver mineralization at the Bolanitos Mine in Durango, Mexico. Luis Castro, the VP of exploration said, “We continue to intersect strong drill results as we step out from the current margins of the Melladito and Belen orebodies, with a number of other targets to drill, along both the Melladito and Belen veins.”
Advancements like this can often cause a mining stock to increase in price. In the last month EXK has gone from $5.70 a share to more than $7.40 a share. On May 28th, the company’s stock price has increased by more than 2%.
Mining Stocks In 2021
As the pandemic continues to dwindle down, mining stocks are growing in value. Industrial demand and retail is continuing onward which is helping all types of mining stocks. Even lithium stocks are receiving a boost after electric vehicles are seeing a boost in sales. Sure, mining stocks are still volatile at the moment. But which companies will you add to your watchlist?
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