Are these mining stocks on your list this year?
Mining stocks have had quite an interesting and volatile year in the market. The year started with a lot of vaccine distribution and hope that the COVID-19 pandemic will be coming to a class. In turn, this hurt a lot of mining stocks during 2021. This is because mining stocks strive when the economy is worse off. This is the case because many invest in assets like gold and silver instead of the dollar during dark economic times.
While gold stocks and silver stocks are among the most popular, there are many other mining stocks that are performing well in the market right now. So how do you know which sector to look at? Well, there are quite a few sector options when you are looking to invest in these assets. Uranium stocks have been performing particularly well recently as a result of social media hype coming from places like Reddit. This material has been mentioned a lot recently on the popular subreddit WallStreetBets, which has sent many uranium stocks upwards.
Uranium stocks are not the only mining assets that are performing well this year, though. Iron ore, lead, copper, and lithium are just a few more of the big names in the mining sector. Often it can be difficult to decide which one of these is right for you. That is why looking at the latest news in each sector can be very useful when investing. For example, if a metal was experiencing a shortage at the moment, it could catch your attention for your mining stock watchlist. It all depends on the investor, of course. For now, let’s have a good look at three mining stocks that are pulling ahead as we continue through the volatility of 2021.
Top Mining Stocks To Watch
- New Gold Inc. (NYSE: NGD)
- Energy Fuels Inc. (NYSE: UUUU)
- Cameco Corporation (NYSE: CCJ)
New Gold Inc. (NYSE: NGD)
New Gold Inc. is a mining stock that just went up 2.48% in the market. This is a company that mines for gold and develops various mineral properties. In addition to gold, this corporation also searches for silver and copper deposits. The company’s main operation is the Rainy River gold and silver mine in Canada, which it holds a 100% interest in. The company also has the New Afton gold-copper mine, also located in Canada.
Just a day ago, New Gold restructured its operational outlook. Early last month, the gold company specified that its July production at the Rainy River mine was from the eastern area of the ODM zone at the development. Now New Gold has a decrease in its near-term guidance at the project. In July and August, the high and medium grade ore from the East Lobe harmfully reconciled to ounces mined.
Because of this issue, there were 20,000 lower gold ounces produced in this time period. President and CEO Renaud Adams said, “While the reduction in our near-term guidance at Rainy River is unfortunate, I remain confident the mine has reached an inflection point, as evidenced by the free cash flow generated in the second quarter and the mine is on track to deliver an improved second half of the year.” Investors don’t seem to be too concerned with this update, as on the same day its stock price went up by more than 2.4% in the market. The company’s volume is also higher than its average at the moment. Keeping this in mind, will NGD enter your list of mining stocks to watch?
Energy Fuels Inc. (NYSE: UUUU)
Energy Fuels Inc. is a uranium stock that is performing very well in the market right now. This is a mining corporation that extracts, recovers, explores for, and sells uranium products. These products include both conventional and in situ uranium. Energy Fuels actively operates the Nichols Ranch project, Hank project, Alta Mesa project, and many more in the United States. It also has an alliance agreement with RadTran LLC to evaluate the recovery of thorium and potentially radium.
On July 30th, the company released its financial results for the quarter ended June 30th, 2021. The company entered a definitive agreement to sell a package of its non-core conventional uranium projects in Utah and Colorado to International Consolidated Uranium Inc. during this quarter. The current proforma value of this divestment is about $24 million as of July 30th. At the end of this quarter, the company had $98.8 million in working capital.
President and CEO Mark S. Chalmers said, “Energy Fuels achieved another significant milestone in restoring U.S. rare earth supply chains when we recently announced the successful production of rare earth carbonate from U.S.-sourced natural monazite sand at our White Mesa Mill.” Now UUUU stock price has gone up possibly as a result of Reddit hype from subreddit WallStreetBets. Its stock price is up 4.77% in the market on September 13th, and its volume is more than two times its average in the market. So will UUUU stock make your watchlist of mining corporations in 2021?
Cameco Corporation (NYSE: CCJ)
Cameco Corporation is another uranium stock that just went up in the market. This is a company that both produces and sells uranium products. Primarily, Cameco will mine, mill, purchase, and sell uranium concentrate. It also has a fuel services segment that refined, converts, and fabricates uranium concentrate.
In July, the company reported its second-quarter results for 2021. The company also announced further contracting progress and continued execution of strategy to support global clean-air transition. Cameco experienced a second-quarter net loss of $37 million and an adjusted net loss of $38 million. Its balance sheet remains strong with $1.2 billion in cash and short-term investments. Cameco is another uranium stock that has gone up in the market, possibly as a result of WallStreetBets and other related social media hype on websites such as Reddit. Its volume is over 3 times its average in the market at the moment. So with all of this in mind, is CCJ stock a contender for your mining watchlist?
The Future of Mining Stocks
Because of the volatility in the world, nobody truly knows what direction mining stocks could go in at the moment. That is why taking things on a week-to-week basis is often a good strategy if you are short-term investing right now. For example, uranium stocks going up because of social media hype. No matter which mining stocks you decide to invest in, there is a lot of potential in the market right now. So which mining stocks from this list will make it into your portfolio, if applicable?
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