Is It Time To Put Gold Stocks On Your Watch List?
It is a well-known fact that one of the more effective ways of making money in the market is by tracking certain sectors. You can then unearth promising stocks from within that sector. One of the sectors that has performed strongly over the course of the past few quarters has been the mining sector.
Unlike other markets like tech or healthcare, mining has a lot more going on with it pertaining to global economics. There are close ties to currency rates, bank rates, etc. that could boost or push down the price of precious metals.
However, in a climate like the one we’re in, the geopolitical uncertainty mixed with the coronavirus could give rise to bullish cases for mining stocks. With that in mind, here are a few gold stocks to watch this month.
Gold Stocks To Buy or Watch: Sibanye Gold
The first mining stock that could be in the radars of investors at this point is that of Sibanye Gold Ltd (SBGL – Free Report). Yesterday, the company’s Chief Executive Officer made a comment that should be encouraging for market participants. CEO Neal Froneman told the Wall Street Journal that Sibanye is looking to get into mining opportunities beyond precious metal. Froneman stated that the company is considering moving into ‘high-tech metals’ like copper.
He believes the automobile market is changing quite rapidly. Such metals are going to be in high demand in the years to come according to Froneman. The main focus is for use in the growing electric vehicles market. Sibanye-Stillwater aims to get into space through acquisitions.
Gold Stocks To Buy or Watch: IMC International Mining
This week, shares of IMC International Mining (IMCX – Free Report) echoed the strong sentiment seen from junior gold discovery stocks. The gold stock managed to rise to highs of $0.40 before settling out at $0.385. In addition to that, IMCX saw its highest dollar volume traded, in the history of it being a publicly-traded stock.
What has helped fuel momentum for stocks like IMC has been a focus on junior miners in general. If you look at the VanEck Junior Gold Miners ETF (GDXJ – Free Report), you’ll quickly notice that it has outpaced the larger gold-bullion backed ETF’s like the SPDR Gold ETF (GLD – Free Report). Furthermore, the speculative nature of these stocks tends to lend itself to higher price spikes during times of market uncertainty.
Outlets like The Street have come out to say, “the juniors tend to be more volatile than the majors, jumping faster in rallies, and falling further in routs. Now that gold prices seem to be on the march higher we can expect juniors to race ahead of the major gold stocks.”
With the previous production figures suggesting potential for further gold discovery, IMC’s Bullard Pass property could be well-positioned. Specifically, an Arizona geological report explains, “the mineralogic and structural similarities of the Bullard and Copperstone districts suggest that potential exists for a major gold deposit in the area of the Bullard district.”
Gold Stocks To Buy or Watch: Freeport-McMoRan
Another mining stock that could be in the watch lists of investors is Freeport-McMoRan Inc (FCX – Free Report). The company beat estimates in its fourth-quarter earnings. In fact, its revenues rose by as much as 6.6% year on year to hit $3.91 billion. However, despite the impressive performance, the company’s stock actually declined by 2.9% in premarket trading this morning.
However, it cannot be denied that the Freeport-McMoRan’s performance has been quite impressive. The decline this morning could well prove to be an anomaly. Considering the momentum that’s still underway across mining stocks, Freeport could remain a top mining stock to watch this quarter.
Gold Stocks To Buy or Watch: Alamos Gold
Finally, Alamos Gold (AGI – Free Report) has moved even higher on Friday with the broader gold sector. In its 2020 production, operating guidance update the company pointed out its targets and goals for the new year. During the first half of the year, the company guided lower as far as production from its Young-Davidson project.
However, its cash guidance came in above its 2019 guidance. The company also expects to begin Phase 3 expansion study and construction decision for its La Yaqui Grande in the second quarter.
Furthermore, capital spending in 2020 is expected to total $75 to $85 million, down from guidance of $80 to $90 million in 2019. All-in-all, Alamos is taking aim at a lot of bigger initiatives in 2020. Assuming the first few quarters are flat, could the second half of the year prove even bigger?
So far this year, shares of the gold stock have climbed. In addition, AGI stock has seen a considerable move on a year-to-date level. Since January 24, 2019, this gold stock has rallied by as much as 65%.
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