The market for mining stocks has had quite the bullish run in 2020. We’ve seen the prices of gold and silver for example, skyrocket at many points. But now could mining stocks be in a bit of trouble? It seems like the vaccine news that was released recently had a negative effect on these precious metals. As soon as news came out that a vaccine could be 95% effective at treating COVID-19, precious metals fell in price. One metal that was able to make it out unscathed was lithium and related stocks. But others were not so lucky in terms of the same matter. That was, until news came out that President-elect Joe Biden could be piecing together a stimulus plan.
Stimulus hurts the value of the dollar and the economy obviously. So naturally it will bring the price of various precious metals up. That is part of the reason many precious metals are even at the point they are at right now. For investors that want mining stocks to go up, more stimulus is the hope. While other investors who want a bear market will look towards a vaccine coming out much sooner. On December 7th, gold futures are up after recovering from overnight pressure. Futures are up as there was a change in the U.S. dollar index, as well as weaker crude oil prices. Subsequently some mining stocks have increased as well. So what names will you add to your list of mining stocks? Let’s have a look at four companies showing that positive performance is possible in the mining sector this year.
Read MoreTop Mining Stocks To Watch: Eldorado Gold Corporation
First up on this list of mining stocks comes Eldorado Gold Corporation (EGO Stock Report). Eldorado Gold Corporation is a mining company that will discover and acquire land, explore it, develop it, and then produce and sell precious metals. Its products include but are not limited to gold, silver, zinc, lead, and iron ores as well. Currently Eldorado runs the Kisladag and Efemcukuru mines. These mines and all of its properties are in Greece and Canada. So let’s see what this company has been up to lately.
On December 2nd, Eldorado Gold released updated reserve and resource statements. It stated that its proven and probable gold reserves totaled 17.7 million ounces as of the 30th of September 2020. This is higher than its 17.5 million ounces reported on December 31st, 2019. This 1.3 increase is due to its mines increasing in overall proven and probable reserves. These increases were at the Kisladag, Lamaque, and Perama Hill mines while its Lympias and Efemcukuru mines had decreases.Top Mining Stocks To Watch: IAMGOLD Corp.
Next up on this list of mining stocks is IAMGOLD Corp. (IAG Stock Report). IAMGOLD is a mining corporation that explores, operates, and develops a variety of mineral properties. The company’s assets are located in North America, South America, and West Africa too. It normally looks for gold but also has interest in other assets like silver too. IAMGOLD owns the Essakane mine, Westwood mine, Roebel mine, and others. Let’s look at what the company has been up to recently.
On December 1st the company reported remaining assay results from its 2020 drilling program. IAMGOLD also confirmed the extension of the renard system to the West at the Nelligan Gold Project in Canada. The Executive Vice President of growth for IAMGOLD, Craig MacDougall said, “These remaining results continue to demonstrate continuity of mineralization from the infill drill holes completed in the resource area, and importantly, also continue to demonstrate that mineralization extends well beyond the area of the current modeled resource to the west for at least 500 to 700 meters.” Now the company plans on compiling data to help guide future drilling programs.Top Mining Stocks To Watch: Harmony Gold Mining Company Limited
Now let’s talk about Harmony Gold Mining Company Limited (HMY Stock Report). Harmony Gold Mining Company Limited is a mining company that will explore land, extract precious metals, and process them. Its primary minerals include gold, silver, copper, and uranium. It looks for deposits in South Africa and Papua New Guinea. Considering HMY stock has been going up in 2020, let’s see what else this corporation has been up to recently.
Back in September the company released negative financial results. It announced drops in revenue and gold production. Then, on November 19th the company presented at the dbVIC Deutsche Bank ADR Virtual Investor Conference. Despite the negative results posted by the company, HMY stock has fared well in 2020. HMY stock price is up from the start of the year, even reaching 5 year highs back in July. As of December 7th 2020, HMY stock price is at $4.50 a share on average.Top Mining Stocks To Watch: Pan American Silver Corp.
The final mining stock to watch is Pan American Silver Corp. (PAAS Stock Report). Pan American Silver Corp is a mining company that explores for and develops mineral properties in Canada, Mexico, Peru, Bolivia, and Argentina. It will process, extract, reclaim, and refine precious metals like silver, gold, zinc, lead, and copper at its mines. PAAS stock is another mining stock that has performed rather well in 2020. Let’s see what the final company on this list has in the books for us in terms of recent advancements.
The third quarter results for Pan American Silver Corp. were released on November 4th, and things were looking good. The company drastically dropped its operating costs. Additionally, higher metal prices resulted in the company’s mine earnings growing to $124.6 million. Despite the pandemic causing delays and closures, most things are up and running once again for the company. On the day of December 7th, PAAS stock price is nearly up 5% a share at $32.08 on average. 6 months ago, this mining stock was at $26 a share on average. So it is clear that Pan American Silver Corp. has been able to see some positive gains throughout the year. While these mining stocks fluctuate with the price of the metals themselves, the companies that gain the most have positive performance too in the sector.