At the start of this week, gold experienced its worst one-day price drop in the last 7 years. But despite this, gold prices were able to hold at $1,850 an ounce after dropping over 5% on Monday. The initial sell-off was due to Pfizer and BioNTech announcing its potential vaccine for the coronavirus that was reportedly 90% effective. But this is still at least months away before anything could be widely distributed or considered, so precious metal prices held on. The fact that gold was able to hold itself at $1,850 showed a solid foundation for current gold prices. Some predict that more stimulus will be released to people too, which will help gold prices go up.
Due to precious metals being physical assets, they will often go up when the economy is going down. Recently the US labor market has seen an improvement as less people are applying for unemployment benefits this month. But despite this it has not affected the gold and silver market too much.
The vaccine that is posed does not show any near term solutions, so it will not affect the prices of metals very much. Even on slow days where gold and silver prices do not move very much, there are good mining stocks to watch. Now let’s dive into some mining stocks that are high performers this month.Top Mining Stocks To Watch: Walcott Resources Ltd.
Let’s first talk about Walcott Resources Ltd. (OTC:WALRF Stock Report) (CSE:WAL). Walcott Resources is a gold and silver mining corporation with those resources as its primary target. It has performed well this year despite all of the negatives caused by the pandemic. Currently, Walcott is focused on its Tyr Project that is located in Australia. The Tyr Project is a mining project that targets silver as its main resource. The company announced that it will be speeding up its prospective silver goals and drilling campaign at the property recently. Let’s look at some other advancements the company has been making.
Walcott Resources just reported on November 11th, 2020 that it sees a lot of potential in the exploration at Century South silver and zinc project (CSSZP). This is a project that the company acquired in recent history. The CSSZP is located in Australia, at the Mt. Isa Basin, a reportedly prospective silver, zinc, lead, and copper region. Walcott says that the CSSZP is a 277 square km property that is very prospective, with many mineral deposits on the land.
Much of this land has not yet been explored or mined at which is what Walcott plans on taking on. The company sees similarities within the geophysical characteristics that could be comparable to other mines. The company now plans on doing a site visit and do a surface sampling campaign in the region.Top Mining Stocks To Watch: Kinross Gold Corporation
Next let’s talk about Kinross Gold Corporation (KGC Stock Report), which has been performing well this year. Kinross is a mining company that will acquire, explore, and develop different gold properties. These properties are located in the United States, Canada, Russia, Brazil, Chile, Ghana, and Mauritania. Its process includes extracting and processing gold ores as well and producing/selling the mineral. As of December 31st, 2019 the company held of proven and probable mineral reserves, 24.3 million ounces of gold, and 55.7 million ounces of silver.
On November 4th, Kinross Gold Corporation reported its third quarter results for 2020 including a large increase in earnings and cash flow. The companies operating cash flow more than doubled to $544.1 million, and adjusted operating cash flow went up 86% year over year. Its total production was 603,312 attributable gold equivalent ounces. The company has stated it is on track to meet its original 2020 guidance for production, cost of sales per ounce, all-in sustaining cost per ounce, and capital expenditures. It will be interesting to see what is reported next from Kinross Gold as we finish out 2020.Top Mining Stocks To Watch: Royal Gold Inc.
Now let’s talk about Royal Gold Inc. (RGLD Stock Report) and its recent performance in the market. Royal Gold is a mining company that focuses on the acquisition and management of precious metal streams, royalties, and other related assets. The company will acquire stream and royalty interests to finance projects in the production of developmental stages. The primary assets for the company consist of gold, silver, copper, nickel, zinc, lead, cobalt, and more. Royal Gold actively holds an interest in 187 properties on 5 different continents. 41 of which are producing mines and 16 development stage projects.
On November 4th, Royal Gold reported its third quarter earnings for 2020. Its revenue of $146.9 million was a company record, increasing 23.7% year over year. Its operating cash flow went up 32.2% year over year to $94.2 million. Its dividends paid, and average price per gold ounce increased drastically too. The President and CEO of Royal Gold Bill Heissenbuttel said, “Consistent performance from across our operating portfolio combined with strong metal prices led to record revenue this quarter.” This news did cause RGLD stock price to go up, but it has since fallen down due to the price drop of gold. Now we will see what happens to this gold stock if mineral prices go back up.Top Mining Stocks To Watch: Taseko Mines Limited
The mining stock to watch is Taseko Mines Limited (TGB Stock Report). Taseko is a mining company that acquires, develops, and operated various mineral properties. It holds an interest in the Gibraltar mine in British Columbia, the Yellowhead copper project, the Aley niobium project, and other gold and copper projects. Its properties are all located in Canada and Arizona.
On November 11st, Taseko announced its $23 million bought deal, and up to $2 million concurrent private placement. The company entered this agreement with Cantor Fitzgerald Canada Corporation as a lead underwriter and sole book-runner to purchase 27,750,000 common shares of the company at $0.83 per share. This is for aggregate gross proceeds of about $23 million USD. These funds are intended to be used for ongoing operation, engineering, project costs, and advancement at its Florence Copper Project.
In addition to this, it will be used for general corporate purposes and working capital. While this deal did result in TGB stock falling in price, the company has seen some recent benefits from rising mineral prices. Taseko reported $32 million of adjusted EBITDA in the third quarter of 2020. Only time will tell of this mining stock will be able to go back up despite this recent news. Regardless of the recent news, TGB stock is up a lot from January to November.