Mining stocks have consistently been some of the most popular investment options. There are several reasons why this is the case. For one, we have seen gold prices and subsequently, precious metals prices, shoot up during the Covid pandemic. In the past year, gold prices have shot up by 27% which is quite a lot compared to a 19% rise by the S&P 500 in the same period. While this gain is not as high as more volatile stocks, it is quite good for mining penny stocks. Within the precious metals category, investors tend to focus on gold stocks and silver stocks. One of the main reasons for this is that gold and silver stocks tend to rise in value when investors see volatility in the greater stock market.
In addition, these stocks can be great ways to hedge bets against geopolitical events, inflation and economic issues. With the presidential election on the horizon, we could see more instability in the stock market in the very near future. This means that mining stocks could see some bullish interest as investors work to safeguard their investments.
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What’s more, is that many investors believe that there is a lot of potential for long term growth in this area of the stock market. With values at a low price following record highs earlier in the year, now could be the time to find mining stocks to watch. All things considered, with the market going the way it is, mining stocks present a new and potentially more stable way to see upward momentum in the stock market. With this in mind, here are 4 mining stocks to watch for the upcoming presidential election.Mining Stocks to Watch:
- Walcott Resources Ltd. (OTC : WALRF Stock Report) (CSE : WAL)
- Endeavour Silver Corp. (NYSE:EXK Stock Report)
- Harmony Gold Mining Corp. (NYSE:HMY Stock Report)
- Iamgold Corp. (NYSE:IAG Stock Report)
Walcott Resources Ltd. is first on the list of mining stocks to watch. In the past few months, the company has made some big impressions on the mining industry. For some context, Walcott Resources is a mining company with properties spanning many locations. With these properties, Walcott engages in the acquisition, exploration and mining of precious metals and resources. The company has seen a great amount of potential with its Tyr Project.
This project is based in Australia, which is known for having very high silver reserves. The company has stated that the Tyr Project has several mines within it that could yield high grades of silver ore. Specifically, Walcott announced that it is reopening two historic silver mines within the Tyr Project. Conservative estimates in these mines show that there is high-grade surface mineral occurrences up to 4,710 grams per ton of silver (g/t Ag). The goal of this project is to produce large quantities of silver at a lower price compared to many of its competitors.
Recently, the company announced the closing of its 60% acquisition of 1256714 B.C. Ltd. This company holds a 100% interest in the Tyr Silver Project as well as the Century South Silver-Zinc Project. After finalizing the deal, Walcott now holds 60% of the outstanding shares of the target company in consideration of issuing 15 million common shares. One of the main drivers of the company’s forward momentum is the new CEO and company director, David Thornley-Hall.
After being appointed on October 22nd, Thornley-Hall has since begun to work on all of Walcott’s future endeavors. He is noted as being a “seasoned executive with a background in management, finance, and corporate development with public companies in the resource sector.” With all of this going for it, Walcott Resources Ltd. remains a strong mining stock to watch.Mining Stocks to Watch #2: Endeavour Silver Corp.
Endeavour Silver Corp. is a mid-tier precious metals mining company that owns several mines around the world. While the company does mine gold, it mostly focuses on the mining and production of silver. As of October 2020, Endeavour states that it is working on a few key mines in Latin America. This includes the Terronera mine project in Mexico and several mines in Chile.
The company states that its goal is to become a leading senior silver producer. The timeframe in which this could occur remains unknown. But, the hopes are that it could be in the next few years and beyond. Recently, the company announced that it produced roughly 942,000 silver ounces and 10,260 gold ounces during Q3 of 2020. This brings the total yearly production of silver to 4.4 million equivalent ounces.
Earlier in the year, the company saw production slowdowns at its three mines located in Mexico. This was due to the effects of Covid-19 as well as an abnormally rainy season. Bradford Cooke, CEO of Endeavour stated that “after riding out a challenging Q2 with our mining operations suspended for more than half the quarter, due to government Covid-19 mandate, our operations team were able to deliver a return to our production plan in Q3, 2020.” The effects of Covid have been felt throughout the mining industry and Endeavour Silver Corp. has done all it could to try and work with the restrictions.Mining Stocks to Watch #3: Harmony Gold Mining Corp.
Harmony Gold Mining Corp. is a company that works in gold mining and the exploration, extraction, and processing of precious metals. The company states that it has several mines across South Africa, where gold resources tend to be quite high. In South Africa, it has nine mines that are currently operational. YTD, shares of HMY stock are up by around 31%. Recently, analysts stated that the price target for HMY stock is around $6.08. Back in February, the company announced that it intended to purchase one of the AngloGold Ashanti Ltd.’s (AU Stock Report) last remaining mines in South Africa.
The deal for the Mponeng mine which is the world’s deepest gold mine was worth around $300 million. During that time, Harmony Gold raised around $200 million in funds to help complete the acquisition. With this, it has access to a very large mine with large future potential. Because the price of gold has remained very strong, many investors believe in the long term future of companies like Harmony Gold Mining Corp. With a market cap of around $3 billion as of late October, HMY stock remains a leading company to watch this year.Mining Stocks to Watch #4: Iamgold Corp.
Iamgold Corp. is one of the largest gold mining penny stocks in the industry. Recently, the company announced that it is expected to release very solid Q3 numbers. Zacks Equity Research stated that “Iamgold is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended on September 2020.” If the earnings are in line with estimates, the company could see some major bullish sentiment. The estimates state that the company could post a quarterly earnings about of $0.09 per share which would represent year over year growth of 1000%.
In addition, revenue is expected to come in at around $357 million. This represents a 30% gain from the same quarter of the previous year. While trading of precious metals stocks has been quite volatile in the past few weeks, this estimate has also grown by 4% during that time. This shows that there is a great deal of bullish sentiment surrounding Iamgold Corp. Whether or not it is able to post results that are close to expectations remains to be seen.