In the last year mining stocks have been quite a hot commodity in the market. Metal trading became increasingly popular with the fall of the economy back in March 2020. When the value of the dollar is lower, gold prices go up for example. This resulted in the largest gold and silver rallies ever seen in history. As a result, the mining stock sector attracted a lot of attention from the media and new investors alike.
But what things are impacting mining stocks now that we have arrived in 2021? It’s already half way through February, so there are quite a few things that have occurred. The first of which relates to pandemic numbers. A vaccine is being widely distributed all over the world to solve the pandemic. Injection numbers have surpassed daily infection numbers at the moment. Falling COVID numbers could result in negatives for mining stocks.
Furthermore, Cases are still very high despite going down, which is allowing metals like gold and silver to remain at key price points that have been achieved. On February 10th, a new jobless claims report was released from the U.S. Labor Department. Jobless claims impact mining stocks as more unemployment means worse economy, which helps the metals perform better. This report announced that unemployment claims fell slightly in the last week to 793,000.
While these numbers are still very high, they are starting to decrease. It also shows that despite dropping cases, many are still in need of unemployment payments. There are plenty of other developments that are impacting mining stocks as well. That is why it is important to keep up with everything going on in the sector. Let’s have a look at the four top mining stocks to watch as we continue through February 2021.Top Mining Stocks To Watch
- Pretium Resources Inc. (NYSE: PVG)
- Taseko Mines Limited (NYSE: TGB)
- Range Resources Corporation (NYSE: RRC)
- Golden Star Resources Ltd. (NYSE: GSS)
The first mining stock to watch is Pretium Resources Inc. Pretium is a mining comapany acquiring, exploring for, and developing precious metal resource properties. The company’s operations take place in North America and South America. Principally, Pretium searches for gold, silver, and copper deposits. Its main project is located in British Columbia, at the Brucejack project. This project has 4 mining leases and 6 mineral claims that cover more than 3,300 hectares. Let’s take a look at Pretium’s 2021 performance in the market so far.
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Unfortunately, this company recently had to report some bad news. Pretium announced on February 10th that there was a COVID-19 outbreak at its Brucejack Mine. It reported 14 cases of COVID-19 within the mine from employees and contractors. All are currently being isolated and remain in good health, with limited symptons. The CEO of the company Jacques Perron added, “Following the information provided by BC Northern Health we have implemented travel restrictions, as part of our established outbreak protocols, to mitigate the risk of transmission and limit impacts.” Operations are continuing at the mine and things are being closely monitored by the company at the moment.Taseko Mines Limited
The next mining stock to watch is Taseko Mines Limited. Taseko is a mining corporation that acquires, develops, and operated various mineral properties. It holds interest in the Gibraltar mine in British Columbia, the Yellowhead copper project, Aley niobium project, and other gold and copper projects. Its properties are all located in Canada and Arizona. Taseko’s performance this year has been interesting, so let’s take a closer look.
Its latest update was on February 10th, 2021. Taseko announced the completed notes offering of $400 million aggregate principal amount of 7% senior secured notes due 2026. It also announced that the Florence Copper commercial production facility will be moving forward. In regards to the capital programs, CEO Russell Hallbauer said, “A commitment to capital discipline is a guiding principle for this organization. We have demonstrated this in the past by completing over $800 million of capital programs at Gibraltar, on time and on budget. Florence is no different.”Range Resources Corporation
The second to last mining stock on this list is Range Resources Corporation. Range Resources is a natural gas and oil corporation in the United States. Range Resources explores, develops, and acquires natural gas and oil properties. As of December 31st 2019, the company owned and operated 1,272 net producing wells and 833,000 net acres under lease in the Appalachian region. Range Resources has 409 net producing wells and 105,000 net acres under lease in the North Louisiana area.
Well now, the company had announced a conference call on February 5th. The call itself will take place on February 24th, on a Wednesday. This call will discuss Range’s 2020 fourth quarter financial results. This is likely when the next notable movement will be realized in RRC stock price. Sometimes these reports can have small effect on mining stocks too though. For now, we wait to see how RRC stock will perform in the coming weeks.Golden Star Resources Ltd.
The final mining stock to watch is Golden Star Resources Ltd. Golden Star Resources is a gold mining and exploration company based in Canada. It operates and owns the Wassa open-pit gold mine located in Tarkwa, Ghana. Golden Star additionally owns processing plants and underground mines too. This includes formerly the Bogoso gold mining and processing operation in Prestea, Ghana. It holds interest in projects for gold exploration in Brazil and Ghana too. Let’s dive into its most recent performance and reports.
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On January 20th, it reported its 2020 preliminary production results and 2021 guidance. Its final audited 2020 financial results will be released on February 24th, 2021 after the market close. But it is expecting a 7% increase year over year in its production. It will be interesting to see if there is a difference in the numbers once the final full reports are released on the 24th of February.