One of the most remarkable things in the world of finance in recent years has been the rally in gold over the course of the past year or so. The trade war between the United States and China had spooked the markets last year and investors swiftly moved to gold in order to find safeguard their capital.
However, in 2020, the troubles in the Middle East have resulted in a similar situation and have triggered another gold rally. However, it can also have a positive effect on gold stocks. Hence investors could consider tracing these 4 mining stocks to watch right now.
[Learn More About Gold Stocks] Free Webinar On 5 Bullish Cases For Gold In 2020Mining Stocks To Watch: Yamana Gold (AUY) (YRI)
The first gold stock to consider under these circumstances is Yamana Gold Inc. (AUY) (YRI – Free Report), which enjoyed a mini-rally on Wednesday after the company produced its preliminary production report. The company’s performance proved to be a pleasant surprise for investors as it beat the company’s own projections marginally.
In 2019, Yamana gold produced 1.02 million gold equivalent ounces, 900 million ounces of gold and 10.6 million ounces of silver. It was slightly higher than the guidance of 1.01 million gold equivalent ounces, 899000 ounces of gold and 10 million ounces of silver. It is a significant development for Yamana and one that could have a highly positive effect on the company’s stock.Mining Stocks to Watch: McEwen Mining
The other gold stock that could be put into the watch list by investors during this rally is McEwen Mining Inc (MUX – Free Report). On Wednesday, the company released its production report for the full year 2019 and it managed to meet the revised projections that had been announced by McEwen.
The company revealed that it produced 134,316 gold ounces, 3.36 million silver ounces and 174,420 gold equivalent ounces for the full year. It is a much better performance than the revised projection of 131K-138K gold ounces, 3.225 million silver ounces. and 169K-179K gold equivalent ounces. Investors would do well to keep an eye on this stock over the coming days.Mining Stocks to Watch: Trevali Mining
Next on this list of mining stocks to watch, Trevali Mining (TV – Free Report) has been on the move since late-November. At the time, shares traded around C$0.15 and have since reached highs of C$0.245 this week. This 63% move hasn’t come without a few catalysts.
The company reported the exploration results of its Perkoa Mine in Burkina Faso. According to the company, they were quite positive and “early intercepts could represent the edge of a larger system.”
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This month Trevali announced results from the 2019 infill drill program at the Caribou Zinc-Lead-Silver Mine in the Bathurst Mining Camp in Canada. Needless to say, it was a key development and one that the market took favor to.Mining Stocks to Watch: New Age Metals
Finally, shares of New Age Metals (NAM – Free Report) were on the rise this week. In fact, since late December, New Age’s stock price has shot up by nearly 100%. This morning, we saw the mining stock gain even more traction after a big update.
New Age announced that it signed an agreement with IBK Capital who will help the company evaluate “strategic alternatives” for New Age. Essentially, IBK will create a strategy for the company to deliver more value from the company for its shareholders. In response to the news, Harry Barr, Chairman and Chief Executive Officer of New Age Metals, said, “We are very pleased to have a firm with IBK Capital’s global relationships in the mining sector working to explore ways to create value for our shareholders. We continue to develop our 100% owned River Valley Palladium Project located 60 miles from the Sudbury metallurgical complex in Sudbury, Ontario. River Valley is one of North America’s largest undeveloped primary Platinum Group Metals Projects.”
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IBK Capital’s responsibilities include coordinating discussions with interested parties on a “potential investment in, or acquisition of the company.” This was the extent of the announcement however, given the climate for M&A in mining, it doesn’t seem like it was negative for the mining stock based on the market’s reaction. Can this trend continue throughout the month?