Mining stocks present an interesting opportunity for both conservative and growth investors. While not all mining stocks are created equally, there are some that have continued to present high amounts of value and forward momentum. As always, it is extremely important to do the research on every mining stock that one wants to add to their watchlist. In the past six months, a lot has changed due to Covid. And with the pandemic on the rise again, investors may be able to take advantage.
When economies are down and inflation is up, investors tend to turn to mining stocks and precious metals stocks. These companies are known to be more stable investments that can at times, push up when markets are down. While no industry is truly immune to overall stock market volatility, mining stocks do tend to be less volatile than most. As we continue to move further into 2020, there may be quite a lot of opportunities with certain mining stocks to watch.
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As Covid hopefully winds down in the next few months, many believe that industrial operations will resume soon enough. This would mean a greater demand for mined products such as building materials and raw ore. In addition, certain geopolitical factors such as the U.S. election, mean that investors are piling into mining stocks as a way to safeguard their investments. With stock market volatility on the rise, here are 5 mining stocks for a potential November rebound.Mining Stocks to Watch:
- Walcott Resources Ltd. (WALRF Stock Report)
- B2Gold Corp. (BTG Stock Report)
- Sibanye-Stillwater Ltd. (SBSW Stock Report)
- Eldorado Gold Corp. (EGO Stock Report)
- Hecla Mining Company (HL Stock Report)
Walcott Resources Ltd. is a mining company that has properties in a variety of locations around the world. The company states that its primary focus is on the acquisition, exploration and mining of precious metals on the properties it owns. Recently, Walcott announced that it had closed on the acquisition of 60% of 1256714 B.C. Ltd. The latter owns a 100% interest in the Tyr Silver Project as well as the Century South Silver Zinc Project. Specifically, the Try Project has sparked great interest for Walcott Resources. Conservative estimates in these mines show that there are high-grade surface mineral occurrences up to 4,710 grams per ton of silver (g/t Ag). For those who are not familiar, this is a very sizeable quantity of surface mineralization.
If we look at the Uchucchacua Mine in Peru which holds the title for having the highest-grade silver in the world, we see that it only has reserve grades of 445 (g/t Ag). For this reason, we see that the Tyr Project has a great deal of potential to produce large quantities of silver moving forward. In addition to this, on October 22nd, Walcott appointed David Thornley-Hall as the new CEO of the company.
The company states that Thornley-Hall is a “seasoned executive with a background in management, finance, and corporate development with public companies in the resource sector.” In addition to this, the company has seen an uptick in trading activity on the U.S. stock exchange. Prior to that, Walcott stock was only trading on the Canadian Stock Exchange. This has helped to usher in a new era of popularity for Walcott Resources. With that in mind, WALRF stock remains one of the mining stocks ot watch in November.Top Mining Stocks to Watch #2: B2Gold Corp.
B2Gold Corp. is considered to be a senior gold mining company. In the past year or so, B2Gold has seen some solid stock performance due to rising gold prices. Year to date, BTG stock has shot up by around 62%. Compared to an 8% gain for the S&P 500, we see that B2Gold has a lot to offer bullish investors. In the past quarter, the company has seen some trouble with the effects of the COVID pandemic. But, with a market cap of $7.3 billion, it looks like B2Gold has enough cash to remain on top. In the first half of this year, the company produced a record 490,000 ounces of gold. This represents a year-over-year growth rate of around 20%.
In addition, all of the company’s mines exceeded their target production goals for this time frame. For the full 2020 year, the company stated that it expects to produce around 1,055,000 ounces of gold. From a financial perspective, B2Gold looks like it is in a solid position as well. The company reported 44% in revenue growth during the first quarter of 2020 with that percentage shooting up to 65% in the subsequent quarter. During the first half of the year, the company also brought in around $822 million in revenue which is quite substantial. With solid financials and several projects in the works, B2Gold Corp. remains a leading mining stock to watch.Top Mining Stocks to Watch #3: Sibanye-Stillwater Ltd.
Sibanye-Stillwater Ltd. is another mining company that has produced some solid results in the past few months. Recently, the company stated that in its Q3, its adjusted EBITDA almost tripled to a record high of $922 million. In addition, the company has stated that it expects prices to continue going up in the near future. This should help to fund larger operations as the next few months roll on. One of the major issues that Sibanye-Stillwater has run into is restrictions regarding Covid in South Africa. Although South African gold mining saw 92% of its workforce out of a job, the company still achieved 99% of its production goal.
In the third quarter, the company reported that it produced 289,000 ounces of gold compared to 287,000 ounces in the previous years same quarter. Year to date, SBSW stock has shot up by around 17%. While this is not an incredibly sizable gain, it does show that there is a great deal of stability in its pricing. In the past six months, SBSW stock has risen bin value by almost 47% which is quite substantial. With its operating results showing a great deal of promise, SBSW could find itself on several lists of mining stock to watch this month.Top Mining Stocks to Watch #4: Eldorado Gold Corp.
Eldorado Gold Corp. is a gold and metal producer with operations that span mining, development and exploration of various assets. Although it does have operations in Brazil and Canada, the company holds the majority of its assets in Europe. This includes operations in Turkey, Greece, and Romania. Recently, the company announced some very solid financial and operating results. In the third quarter of 2020, the company produced around 137,000 ounces of gold. This represents an increase of 35% over the same quarter of the previous year. For the full 2020 year, the company stated that it expects to produce roughly 520,000 ounces of gold at around $850 per ounce.
In addition, the company has been able to lower its price per ounce from $1,031 last year to $918 in the most recent quarter. George Burns, CEO and President of the company stated that “this quarter continues the positive results we have delivered over the last 18 months. We are driving significant value from our operations demonstrated by steady production and lower costs that are flowing through our bottom line.” These operating results show that Eldorado Gold Corp. could be on the path to a decent forward trajectory.Top Mining Stocks to Watch #5: Hecla Mining Company
Hecla Mining Company saw a nice turnaround in price on Monday. Starting November on a high note, HL stock bounced back more than 5% from its previous close. Despite a red day on Friday, the last 3 days of trading saw Hecla stock extend higher. Next week the company is set to report its earnings. While we won’t know the specifics until then, there are a few cues to gather from previous updates from the company. Earlier in October, Hecla announced that it expects a 47% drop in gold production for the quarter.
“Given our free cash flow generation, we expect to spend about $5 million more in exploration, and based on our realized silver price for the quarter being above $25, we expect the silver-linked dividend to be triggered,” CEO Phillips S. Baker, Jr. said.
Despite this drop in gold, silver, lead and zinc are all expected to record production growth in the quarter. Given the price of precious metals right now and during Q3, this could be something important to note when it comes time to deliver its formal results next week.