Throughout the entire year, mining stocks have been a hot commodity to investors looking to make a profit. The reason behind this is the large increase in price for gold and silver. Despite the pandemic causing an initial slow or stop of production in mines, this sector has been able to bounce back. Last week gold prices went up as the dollar slipped due to the election.
But on November 9th, gold prices are down $100 to about $1,850. This is because of the news from Pfizer and BioNTech announcing its potential vaccine for COVID-19. These headlines are negative for gold because many are holding onto gold as an investment while the economy is in a bad place. Even if a vaccine is proven successful, that doesn’t mean it can quickly be widely distributed.
This means that mining stocks still have the potential to go back up in the meantime. Additionally, if the virus is gone that doesn’t imply the economy is instantly going to go back to how it was, there is lots of damage that will take time. So with that being said, let’s look at three mining stocks that are performing well in 2020 and have taken advantage of rising mineral prices.Top Mining Stocks For November: Walcott Resources Ltd.
Walcott Resources Ltd. (OTC:WALRF Stock Report) (CSE:WAL). is a mining company that has been able to survive despite the negative effects caused by the pandemic. The mining company currently searches for active silver and gold deposits on its properties. Its main property is the Tyr Project located in Australia, which targets silver deposits and actively is estimated to have 4,710 grams per ton of silver in its mines (g/t Ag). In addition to this property, Walcott also owns Cobalt Hill whose focus is on high-grade gold mineralization.
Walcott Resources just announced plans to speed up the progress at its Tyr Project. The plan is to look at the current prospective silver targets on its silver exploration program, and accelerate things. It also recently just acquired 1256714 B.C. Ltd. also known as Targetco, which actively owns 100% interest in different prospective silver and zinc projects.
Now it will be interesting to see what advancements and announcements Walcott Resources makes to close out the year of 2020. Only time will tell, and that is why it is important to stay up to date on news for a company if you are looking to invest.Top Mining Stocks For November: Barrick Gold Corporation
Barrick Gold Corporation (GOLD Stock Report) is a mining company that actively explores, develops, produces, and sells gold and copper. The company has grown to be one of the largest in the gold mining sector. It owns gold mines in plenty of locations including the United States, Chile, and many more. Let’s take a look at the recent news that has come from Barrick Gold Corporation and its current performance in the market.
Barrick recently reported net earnings of $882 million or 50 cents per share in the third quarter of 2020. This is down from $2,277 million or $1.30 the previous year. But its adjusted earnings per share went up 173.3% year over year to $0.41. The company additionally increased sales by 32.2% in the quarter as well. Gold production did fall though, as the pandemic had a bad effect on the company and the industry at the start of 2020. This was the same case with its copper production as well.
Its cash and cash equivalents went up 97.3% year over year despite this, and its long-term debt went down. This caused GOLD stock to go from $27 a share to $29 a share as a result. But as of November 9th, GOLD stock price is down due to the pandemic news that was released and mentioned at the beginning of this article.Top Mining Stocks For November: ArcelorMittal
ArcelorMittal (MT Stock Report) is a company that owns and operates various steel manufacturing and mining facilities. These facilities are located in Europe, the Americas, Asia, and Africa. Its steel products include slabs, coils, sheets, billets, and more. Its mining products are iron ore lumps, concentrates, pellets, and more. These products are primarily sold to companies in the automotive, engineering, construction, machinery, and energy industries. Let’s see what ArcelorMittal is up to recently in the news.
On November 4th, ArcelorMittal reported its results for the third quarter of 2020. It was here in which it announced overall improved operating performance after all of the pandemic related lockdowns. Specifically its automotive marketed products have begun to do well once again. Its operating income was $0.7bn compared to an operating loss of $0.3bn the previous year. Its EBITDA went up as well, by 27.4%.
The CEO of ArcelorMittal, Lakshmi N. Mittal stated, “The third quarter marked an improved operating performance for the Group with steel markets recovering gradually from the very challenging second quarter after the ending of lockdowns.”
It seems like, despite the negatives from the pandemic, this mining company has been able to hold up. From November 3rd to November 9th, MT stock has gone from $14 a share on average to $16 a share on average.Top Mining Stocks For November: Vale S.A.
The final company on this list is Vale S.A. (VALE Stock Report). Vale S.A. is a mining company that produces and sells iron ore and pellets. These materials are used as raw materials for making steel. It operates primarily out of Rio de Janeiro in Brazil, where its products are produced. Vale will make iron ore, manganese, and ferroalloys. Its minerals extracted include copper, gold, silver, cobalt, and other precious metals.
In its recently released third quarter results, Vale came bearing some good news. Its net operating revenue increased 5% year over year to $10.76 billion. Vale’s sales of ferrous minerals were 80.7% of its net operating revenue, while base metals and coal made up the rest of the percentages. Its cost of goods sold went down 15% year over year, and its gross profit went up 31% year over year. Vale’s operating income went up as well to $5,321 million over $3,676 million in the previous year. The rising price of minerals and some of this positive news are why Vale has been able to nearly recover in stock price this year.