When it comes to the stock market, 2020 and 2021 have been more unique years for traders. We’ve seen the rise of the Apes – thousands of retail traders joining forces to show they aren’t “dumb money” as “the hedgies” might assume. We’ve also seen average Joe’s try their hands at making money with stocks. They’ve started learning the basics for the first time in their lives. With this has come growing popularity for mobile-first brokerage platforms. Robinhood (NASDAQ: HOOD) stands out as one of the leaders.
Despite some of the troubles it has gone through, the Robinhood app has offered a quick and easy way to access stocks, options, and even cryptocurrencies. But there is a sticking point for some traders looking for cheap stocks to buy. The app doesn’t allow access to most OTC stocks. Does this mean that users are out of luck when it comes to small companies? No, and since Robinhood offers access to all NASDAQ and NYSE listed names, you’re sure to find a few trading for pennies a share.
Robinhood Stocks Under $1 & Risk
Making a quick buck off of cheap stocks seems simple. But when you’re talking about stocks trading for pennies, the Nasdaq and NYSE don’t look highly upon companies in that range. In addition to reporting requirements, these exchanges also require stocks to maintain minimum bids with the $1 threshold acting as that threshold. If shares of a company remain below that mark for too long, there’s a risk that the stock gets de-listed to the OTC market and potentially inaccessible to the shareholder.
Now that you understand the risk, let’s look at the flip side. Stocks under $1 can offer massive potential for significant gains and quick profits. For instance, in the case of a $0.50 stock, even a move of just 5 cents equates to a 10% spike in value. In today’s article, we’ll look at a few mining stocks on Robinhood trading for pennies a share. Remember, however, that just because they’re “cheap,” that doesn’t make them any less risky. Will they be on your watch list this week?
Mining Stocks On Robinhood Under $1
- United States Antimony Corp. (NYSE: UAMY)
- Almaden Minerals Ltd. (NYSE: AAU)
- Northern Dynasty Minerals Ltd. (NYSE: NAK)
United States Antimony Corp. (NYSE: UAMY)
Earlier this week, we discussed how the mining industry as a whole could change in 2022. With the rise of new industries like electric vehicles, renewable energy, and alternatives, precious metals may not be the standard when someone thinks about “mining stocks.” In line with that, companies like United States Antimony could come into focus.
The company is looking to leverage the growing demand for North American antimony supplies since it was added to the US Geological Survey Listing of Critical Minerals. The possible applications in electrical storage in batteries have boosted attention in recent years.
In US Antimony’s November update, the company also highlighted this belief. It has begun negotiations with North American suppliers for multi-year contracts to supply antimony by-products. The company has also started to assess two advanced stage antimony mining operations and remained steadfast in identifying additional properties.
Regarding other targets of interest for US Antimony, its Bear River Zeolite project could become another development to watch heading into the new year. The company believes that zeolite could be a key component in the “Green Economy” moving forward. It has made investments in upgrading its plant and increasing production. With this, UAMY could be one of the mining stocks on Robinhood to watch as 2022 approaches.
Almaden Minerals Ltd. (NYSE: AAU)
Shares of Almaden Minerals have been relatively flat over the last few weeks. However, with an uptick in daily average volumes compared to the beginning of the month, AAU stock could be back in focus for some traders. The company has set an ambitious plan for next year, piggybacking from progress made earlier this year.
In its latest business update, Chairman Duane Poliquin explained, “We are mindful and respectful of recent statements made by officials in the Mexican environmental authority, to the effect that they are going to apply very strict standards to environmental permit submissions regarding open pit mining projects…Ixtaca is a project whose environmental footprint benefits tremendously from its local geography and geology, and we are confident that it can meet the highest global development standards. We are well-positioned financially and look forward to a productive year in 2022.”
Almaden shareholders are now waiting on the next steps for its environmental permit application. Thanks to delayed fieldwork due to the pandemic, the company paused progress. However, based on recent events, Almaden has explained that it expects the application to be ready for submission during the second half of 2022. With that, this cheap Robinhood stock could be one to keep in mind.
Northern Dynasty Minerals Ltd. (NYSE: NAK)
Like most of the stocks on this list, Norther Dynasty has treaded water over the last few weeks. It is now trading at levels similar to December of last year.
Concerns were raised about Northern Dynasty’s Pebble Project in Alaska, which all but shut down the mining company. The Environmental Protection Agency sided with conservationists in protecting specific natural resources in that part of Alaska. What’s more, earlier this month, CEO Ron Thiessen commented on the latest round of discussions from the EPA.
“While it is not yet known what action, if any, the EPA will finally take, we are cautiously optimistic about their commitment to consider new information that has become available since the 2014 Proposed Determination and to make science-based decisions…We do not know which new information they may use in their decision, but we believe that the strong administrative record of the overwhelmingly positive Final Environmental Impact Statement of 2020 that was prepared by the U.S. Army Corps of Engineers should be an important part of it.”
This is a very speculative situation already. It might be a big event for Norther Dynasty if they can press forward with the Project in the new year. But, there’s still a giant question mark to find an answer for, which is likely a reason why NAK stock has slid to these sub-$1 levels.
Mining Stocks To Watch
There’s still plenty of other things to consider when it comes to mining stocks. Broader market trends tend to sway the directional momentum at times. In light of future rate hikes and some uncertainty surrounding the latest virus strain, investors have found several hot button items that have made mining and metals an attractive market niche to follow.
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