With so many mining stocks increasing in price in the last year, things can get confusing when investing. The rapid rise of assets like gold and silver have attracted a lot of investors to the mining stock sector. Some of these investors did not consider mining stocks to be a part of their portfolio before. But when investing in mining stocks there are a few things that you should make sure you know. There are a few steps that can be taken before investing in mining stocks.
The first step that could potentially be taken if you want to invest in mining stocks would be looking at the news. This seems straightforward but there are many news factors that impact mining assets. The first of which is sector news. For example, a large national gold shortage would be sector news. News specific to companies is also very important when investing in mining stocks.
Right now it is earnings season so many companies are releasing their full year and fourth quarter results from 2020. This can often dictate the direction in which a mining stock is moving next. Volume is another thing to consider if you are going to enter the mining stock space. Volume can often indicate the direction a mining stock may be moving. For example, if a stock price is going up but its volume is low, this could potentially indicate it falling in the near future. Some may believe that the hype has died down for mining stocks. But this could not be further from true. There are plenty of these assets trending upwards. So let’s take a look at four mining stocks to watch as we start March 2021.Top Mining Stocks To Watch
- Gold Resource Corporation (NYSE: GORO)
- Paramount Gold Nevada Corp. (NYSE: PZG)
- Vista Gold Corp. (NYSE: VGZ)
- Eldorado Gold Corporation (NYSE: EGO)
First up on this list of mining stocks is Gold Resource Corporation. Gold Resource Corporation is a company that engages in the exploration, development, production, and selling of gold. It also searches for minerals like silver, copper, lead, and zinc at various deposits. Its operations are run in the US and Mexico. Primarily, Gold Resource Corporation focuses on the Aguila project holding 18 mining concessions in land of more than 24,000 hectares in Mexico. Let’s check out its 2021 progress so far.
On February 24th, the company reported its 2020 year end financial and operational results. Its net income was $4.4 million in the quarter, with a revenue of $90.7 million in 2020. Allen Palmiere, the President and Chief Executive Officer of Gold Resource Corporation stated, “Our Don David Gold Mine located in Oaxaca, Mexico delivered solid production results during a demanding 2020 amid the COVID-19 global pandemic.” That is the most recent update that has come from Gold Resource Corporation.Paramount Gold Nevada Corp.
Next up on this list is Paramount Gold Nevada Corp. Paramount Gold Nevada Corp is a gold company that will acquire land, explore it, and develop precious metal properties. Its properties are all located in the United States in Nevada and Oregon. It holds interest in the Sleeper gold project, and the Grassy Mountain gold project. Combined these projects have more than 2700 unpatented claims. So how has this gold stock performed in 2021 so far?
On March 1st, Paramount Gold released its latest update. The company stated that it will be presenting at Red Cloud’s 2021 Pre-PDAC Mining Showcase. The CEO and Director of the company Rachel Goldman will be presenting on March 5th. It will be interesting to see if this upcoming event will have a positive or negative affect on PZG stock price.Vista Gold Corp.
Now let’s talk about Vista Gold Corp. 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. Just like the other companies on this list, it is time to look at its recent advancements in the market.
On February 26th, Vista Gold released its 2020 financial results. Some highlights include its net income and cash totals looking positive. President and CEO Frederick H. Earnest said, “During 2020, we achieved strong financial performance as we executed and delivered on our initiatives to strengthen our balance sheet, identified opportunities to advance and bring greater value to our Mt Todd gold project, maintained our strong social license, and commenced exploration opportunities targeting resource growth adjacent to the Batman deposit.”Eldorado Gold Corporation
The final mining stock to watch is Eldorado Gold Corporation. The corporation is a mining based operation that discovers and acquires land, explores it, develops it, and then produces and sells precious metals. Eldorado’s products include but are not limited to gold, silver, zinc, lead, and iron ores as well. Now It runs the Kisladag and Efemcukuru mines. The mines and all of its assets are in Greece and Canada.
On February 25th, the company reported its 2020 year end and fourth quarter financial and operational results. This included a gold production increase of 34% year over year in 2020. Its strong production numbers resulted in increased cash from operations and free cash flow. In regards to 2021, the CEO and President of the company George Burns stated, “Consistent with Eldorado’s disciplined approach to capital allocation, we will continue to strengthen our balance sheet while reinvesting in mine and project development programs that prioritize profitability and strong returns.”