Gold has emerged as one of the most closely-tracked commodities over the past month or so. It’s no surprise considering the sort of rally it has enjoyed. The ongoing coronavirus panic continued last week, and some good news from China came through recently.
“Tactically, our defensive hedges include gold, Swiss francs — which usually appreciate whenever economic conditions deteriorate, and U.S. Treasuries — additional insurance against the fallout from coronavirus.”Luca Paolini , chief strategist at Pictet Asset Management
Gold held steady on Monday, and spot gold was trading above $1570 an ounce. In such a situation, it is worthwhile for investors to consider some gold stocks to watch. Here is a quick look at 5 names to know this week.Gold Stocks to Watch: IMC International Mining
First, on this list of gold stocks, IMC International Mining (IMCX – Free Report) (IMIMF) has become a focus this month. The company’s stock has reached new, all-time highs in February while gold prices surge. During the last quarter of 2019, gold prices averaged $1,481 per ounce.
This was the highest average price since the first quarter of 2013. 2019 marked a pivotal year for gold and that trend hasn’t stopped in 2020 either. Gold prices surged to highs of more than $1,600/ounce already and with that gold stocks – junior gold stocks particularly – have gained ground.
Last week, IMC International saw shares dip more than 10% in a day for the first time since January. However, it should be noted that the last time it saw a drop like this, shares ended up rebounding to the new, all-time highs the stock saw last week. One of the top items that the company has focused on is its Ballard Pass property. In an amended and restated NI 43-101 Technical Report, the author suggests that the Bullard Pass property is a “property of merit and further exploration is warranted.”Gold Stocks to Watch: Hecla Mining Company
The next gold-related stock that could be on the radar of investors at this point in time is that of Hecla Mining Company (HL – Free Report), and over the past two weeks, the gold stock has performed admirably. During the period, Hecla stock has gained as much as 20%. The rally in gold could be a major factor behind the gains.
However, it should be noted that there have been encouraging developments at its properties at Fire Creek and Casa Berardi. Additionally, Hecla is all set to produce silver at one of the lowest costs from its properties in Mexico and the United States. Shares dipped on Monday after the company announced a $475 million offering of senior notes. Needless to say, this would also provide the company the valuable funds to continue building out its mining footprint.Gold Stocks to Watch: Semafo
Another gold stock that could be watched closely currently is that of Semafo (SMF – Free Report)(SEMFF). Last week the company announced that operations are all set to resume at its Boungou mine. It had been closed due to a militant attack on the workers.
This is a significant development for the company and one that could result in helping the company with its production. It is believed that the Boungou mine could produce between 420,00 ounces and 460,00 ounces in the first three months. The company also expected production at its Mana project between 185,000 and 205,000 ounces.
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The all-in sustaining costs were also anticipated between $1,050 and $1,120 per ounce. Considering the current price of gold right now, this could be a big advantage for Semafo moving forward.Gold Stocks to Watch: DRDGOLD
One gold stock that has been in the middle of a sustained rally since June last year is DRDGOLD Ltd. (DRD – Free Report). Since June 2019, it has gained as much as 210% and has emerged as one of the better performing gold stocks.
Back in January, the company revealed that it expects a significant rise in revenues as well as profits in the period encompassing the second half of 2019. Those announcements possibly worked as another important trigger for the recent gains in the stock.Gold Stocks to Watch: Sandstorm Gold
Lastly, it is Sandstorm Gold (SAND – Free Report) that could be in focus over the coming days. The company is all set to release its Q4 2019 results as well as the results for the financial year 2019 on February 13. Sandstorm is also going to conduct a conference call the next day.
Over the last few weeks, Sandstorm has also attracted attention from the analyst community. CIBC Wolrd Markets boosted its price target from $11.25CAD to $11.75CAD. National Bank also followed suit with a price target increase to $11.50CAD from $11.25CAD previously.
- Gold Stocks To Watch As Gold Prices Are Expected To Rise
- Mining Stocks To Watch As Gold Hovers Near 2020 Highs
In a January update, Sandstorm reported that the company had sold approximately 63,800 attributable gold equivalent ounces. It stated that Sandstorm also realized preliminary revenue of $89.4 million for the full 2019 year. These both represent a record for the company.
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