Are Mining Stocks On Your Watch List Right Now?
Mining stocks have experienced a lot of momentum over the last year. This started when the pandemic began. The pandemic caused most stocks to drop in value.
Mining stocks
made a quick recovery for a few reasons. The first reason is that gold and silver prices skyrocketed due to investors putting their money into metals instead of the dollar.
Another reason that mining stocks experienced an uptick in price is due to increased industrial demand. This has caused iron ore, copper, and steel to increase in price. There are so many mining stocks attributed to these materials that you could potentially invest in. It can often get confusing when investing in mining stocks due to the variety.
What is the best way to invest in mining stocks? Well, staying up to date with sector news is an essential step to take. Metal or material prices have a big impact on mining assets. Company specific news and financial reports can often have a big impact on the price of a mining stock too. We’ve seen financial reports cause a big increase or decrease in share prices in the past.
Right now we are in the midst of the first-quarter earnings season. This is giving investors a good idea of where mining companies stand at the moment. For many, realized metal prices were much higher than usual resulting in year-over-year gains. With so many mining stocks to watch things can get confusing. With all of this in mind, let’s take a look at the top mining stocks to watch this week.
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Golden Star Resources Ltd. (
NYSE: GSS
) -
Vista Gold Corp. (
NYSE: VGZ
) -
McEwen Mining Inc. (
NYSE: MUX
)
Golden Star Resources Ltd. (NYSE: GSS)
Golden Star Resources Ltd. is a mining stock and exploration company based in Canada with a primary focus on gold. It actively runs the Wassa open-pit gold mine in Tarkwa, Ghana. Additionally it owns processing plants and underground mines. It also holds interest in multiple gold related projects in both Ghana and Brazil.
Golden Star received attention with its latest quarterly results, released on May 5
th
. While nothing was groundbreaking, the company reported steady numbers for the time period. Its group cash position did increase to $66.1 million.
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The CEO of Golden Star, Andrew Wray stated, “Q1 2021 was a steady quarter with the mining rate at approximately 4,500tpd and the grade close to the reserve grade. The group cash position increased to $66.1m at the end of the quarter, as the operating cash flow together with $8.6m of net proceeds from the At The Market equity program during the quarter more than offset the payment of $13m of tax relating to Q4 2020 as well as the continued capital investment in the business.”
This quarterly report has fared well for the company. This in tandem with rising gold prices has caused GSS to increase in value. On May 17
th
, GSS stock is up more than 3%. Will you add this company to your list of mining stocks to watch?
Vista Gold Corp. (NYSE: VGZ)
This next mining stock, Vista Gold Corp., is another that is experiencing positive momentum. Vista is a mining corporation that engages in a variety of activities. The company will evaluate, acquire, explore, and advance various gold exploration and development projects. The largest amount of its assets are located in Australia. Its main project is the Mt Todd gold project owned 100% by the company.
The company released its financial results for the first quarter at the end of April. Its cash and cash equivalents of $7.2 million were a big highlight for Vista. Its exploration activities seem mostly positive at the moment as well.
The President and CEO of Vista Frederick H. Earnest stated, “We anticipate approval of the Mining Management Plan in the very near future, and see a tremendous opportunity over the next 12 months to close the gap between our market cap and the intrinsic value of Mt Todd by continuing our drilling program to demonstrate the potential to significantly expand gold resources and by advancing our feasibility studies.” Will VGZ stock make your watchlist?
McEwen Mining Inc. (NYSE: MUX)
McEwen Mining is a mining stock that explores for, develops, produces, and sells various resources. These resources include silver, gold, and copper among others. It owns 100% interest in the El Gallo project, Fenix project, Black Fox mine, and plenty more. It operates properties in Mexico, Canada, Argentina, and the United States.
One week ago this mining company reported exploration and delineation results. Currently The Stock West project’s target, which was discovered in 2019, is being drill-tested in a $20 million exploration and delineation program at the Fox Complex. McEwen has also updated progress on its $5 million drilling program at the Gold Bar mine. MUX stock is up more than 5% on May 17
th
. It has increased more than 11% in the last month. With that being said, will MUX make your list of mining stocks to watch?
Current Climate of Mining Stocks
The pandemic is slowing down in the United States, but not all over the world. Take the COVID-19 crisis in India right now, which is at an all-time high. As reopening continues in some places it can help industrial and retail demand grow. But the world economy cannot simply recover until COVID-19 is completely gone.
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Regardless of the current COVID-19 crisis, industrial demand is in fact going up. Take the big demand in China for steel and iron ore as an example. China is one of the countries that has recovered from the pandemic meaning that its economy is starting to grow once again. With all of this information in mind, will you invest in mining stocks?