As mining stocks progress, which will rise to the top?
In 2021, there have been plenty of mining penny stocks moving higher. Most of this momentum can be attributed to rising prices of materials and metals. A penny stock is defined as an equity trading under $5 per share. Gold stocks made headlines recently as the price for the metal reached above $1,800 per ounce, a feat it had been struggling with for months. Silver has been increasing as well.
In the same timeframe at the start of last year, nobody knew what was to come for mining penny stocks. When March of 2020 arrived, all mining stocks tanked with the rest of the market. But unlike other sectors, this one quickly was able to recover in the market. Metal prices began to rise as world economies were falling as a result of COVID. Now, over one year has passed. Where does that place mining stocks now?
These penny stocks are in an interesting position at the moment. If the economy recovers it is possible for some mining stock volatility. The world is far from an economic recovery though. Sure, COVID-19 is slowing down in the United States as vaccines are being distributed. But in other places such as India, cases of the virus are growing in rapid numbers.
Copper, iron ore, gold, and silver have been high performing mining niches in the last couple months. Mining penny stocks related to the above mentioned materials have gone up as a result. It can be difficult to know which mining stocks to invest in. Looking at recent news, filings, acquisitions, and volume can all be important when investing in this sector. With this in mind, let’s take a look at three mining penny stocks that may make the top of your list.
Hot Mining Stocks To Watch
McEwen Mining Inc. (NYSE: MUX)
This first mining penny stock, McEwen Mining Inc., has had a great 2021 so far. McEwen is an exploration company that, develops, produces, and sells mineral resources. These mineral resources include silver, gold, and copper. McEwen owns 100% interest in the El Gallo project, Fenix project, and Black Fox mine among others. These properties are located in Mexico, Canada, Argentina, and the United States.
McEwen Mining just released its first quarter results for 2021. Its earnings, revenue, and production fell year over year. Despite this, these results were “in line with our expectations” according to the company. It expects to increase production throughout the rest of the year, and end 20-40% higher than 2020. The company did report that its net loss significantly fell from $99.2 million last year to $12.5 million this year.
Ahead of this report, MUX stock has high volume and is moving up in the market. Broader markets are down on May 11
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, but MUX is still performing high, up 2% on the day. This mining stock has gone up nearly 21% in 2021 so far. With all of this information in mind, will you add MUX to your list of mining penny stocks to watch?
New Gold Inc. (NYSE: NGD)
It’s been nothing but positive for New Gold Inc. since its first quarter results were released. Before we jump into those, let’s talk about what New Gold does. The company is a mining business that develops mineral properties all over Canada and Mexico. It mines for gold, silver, and copper deposits at its locations. New Gold holds interest in the Afton, Rainy River, and Cerro San Pedro mine among others.
On May 5
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, New Gold reported its first quarter results. Its revenue grew year over year from $142.3 million to $164.9 million. Its net earnings increased year over year as well. Since the results were released, NGD stock has gone up nearly 9%. This mining stock is still down in 2021 overall, but this is significant progress.
President and CEO Renaud Adams stated, “Our financial position is expected to strengthen with our exposure to gold and copper prices, and our focus in 2021 remains on further optimizing the performance at our operations and maximizing free cash flow to enhance our financial flexibility.” This positive outlook may have had an impact on NGD stock, as it is still performing well days later. Will you add this mining penny stock to your watchlist?
B2Gold Corp. (NYSE: BTG)
Since its earnings season, many mining stocks like B2Gold Corp., are seeing momentum. Currently BTG stock price is at $5.10 per share, technically higher than penny stock status. But this mining stock has been fluctuating between $4.70 per share to $5.29 per share for the last month. What does B2Gold Corp. do though?
B2Gold is a gold producer that operates mines. It currently runs mines in Mali, the Philippines and Namibia. It operates the Fekola mine, Masbate Mine, and the Otjikoto Mine. It also holds 81% interest in the Kiaka Project in Burkina Faso.
On May 4
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, the company joined earnings season with its first quarter results. Its total gold production was reported at 220,644 ounces, 9% above its budget. Its cash flow by operating activities was lower because of lower revenue, higher production costs, and higher working capital. Its net income did grow year over year from $83 million to $99 million. This mining penny stock has gone up more than 6% since its earnings report. Will you add it to your watchlist?
Mining Penny Stocks Recap
Penny stocks are inherently risky assets. This extends to the mining sector as well when talking about those that trade under $5. Some of this risk can be avoided if you create a strategy to invest. Even the simplest steps can help, such as looking at sector news, world news, rumors, speculation, among other things. When investing in mining penny stocks specifically, looking at mine operation updates can be important. If mines are performing well, it can indicate high performance from a mining company. Another indicator can be increasing mineral or metal prices. With this in mind, which mining stocks will make it on to your list?
