The last year and a half for mining penny stocks has been fantastic. During this time span, many companies in this industry have set record highs. It all originated with the pandemic, which prompted the cost of resources such as gold and silver to soar. This has led to there being a slew of mining stocks to keep an eye on in 2021.
Mining stocks have not performed as well in 2021 as they did in 2020. Having said that, there are still lots of assets that have appreciated in value this year. The mining sector’s leaders last year were gold stocks, silver stocks, and lithium stocks. Materials like copper, steel, and iron ore are among the mining sectors that have rapidly gained value at some point over the last year and a half.
Many people are concerned about the impact of inflation on the market right now. Nobody knows which direction mining stocks will move in as a result of this. Many mining corporations are currently publishing their second-quarter financial results for the fiscal year 2021. This can often indicate the direction in which a corporation is headed. Examining global news, industry news, and other company news can also assist in determining when to invest. For example, if there is a scarcity of a resource and demand increases, the price of that material may rise. Now let’s look at three mining penny stocks performing well in the market right now.
Top Mining Penny Stocks To Watch
- New Gold Inc. (NYSE: NGD)
- Harmony Gold Mining Company Limited (NYSE: HMY)
- American Battery Metals Corporation (OTC: ABML)
New Gold Inc. (NYSE: NGD)
New Gold Inc. is a mining penny stock that is now up 5.4 percent on October 4th. This is a corporation that searches for gold, silver, and copper deposits in Canada and Mexico. The New Afton Mine in Canada, the Rainy River mine in Canada, the Cerro San Pedro mine in Mexico, and the Blackwater project in Canada are all owned by it.
New Gold updated its operating outlook for the Rainy River Mine and the combined operational outlook for 2021 on September 13th. The gold equivalent production at Rainy River is estimated to range between 240,000 and 255,000 ounces in 2021. This is a drop due to a deviation in the project’s East Lobe zone.
Renaud Adams, President and CEO of New Gold Inc. 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.” Keeping this new information in mind, will NGD stock be on your mining penny stock watchlist?
Harmony Gold Mining Company Limited (NYSE: HMY)
On October 4th, Harmony Gold Mining Company Limited is another mining penny stock that is doing well in the market. This is a mining company that specializes in exploration, metal extraction, and metal processing. Gold, silver, copper, and uranium are the most common metals that the company looks for. It will also hunt for resources in South Africa and Papua New Guinea, among other places.
Harmony published an operational update for the fiscal year ending June 30th, 2021 in August. During this time, the company’s revenue increased by 45.2 percent year over year. In addition to this revenue increase, Harmony’s net debt was reduced by 52 percent year over year. These results were excellent for the company, but they were not the only factor that influenced its stock price. HMY stock is heavily impacted by the current market performance of gold itself. Will you add HMY stock to your watchlist this month now that you know this new info?
American Battery Metals Corporation (OTC: ABML)
The final mining penny stock that has been performing well on this list is American Battery Metals Corporation. In the Western Nevada Basin, the company owns 647 placer mining claims on 12,940 acres. The company conducts battery metal exploration, mining, extraction, and recycling on these claims.
On September 28th, the company signed formal agreements for the purchase and sale of $39,100,000 in securities before deductions with a US-based institutional asset manager. This transaction was completed at a 5.8% premium to the 5-day Volume Weighted Average Price. As a result, American Battery Metals hopes to be able to support the company’s battery recycling plant construction and commissioning.
Ryan Melset, the CEO of American Battery Metals Corporation stated, “Not only does the capital raised more than fully finance the construction and commissioning of our commercial demonstration plant, but comes from a great partner at a pricing structure expected of a company with plans to be a Nasdaq listed security.” Will ABML be on your mining stock watchlist in October?
Which Mining Penny Stocks Will You Watch?
Choosing which mining stocks to invest in can be tough. When it comes to investing in this area, there are a plethora of choices. Mining stocks include silver, copper, lithium, gold, steel, and a variety of other minerals. Keeping an eye on what’s going on in the market is critical to the investment process. So, what mining stocks are you going to buy this year?
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