MTL - 2 Gold Stocks Gaining Momentum As Yellow Metals Shine
It is a well-known fact that when there is turmoil in the markets, investors generally pull their money from things like tech and instead put it in safer asset classes. One of the most consistent assets during such times has been gold. The turmoil in the markets in recent times has resulted in a sustained rally in the precious metal.
The rally has continued in the New Year as well due to the turmoil in the Middle East. In such a situation, it is worthwhile for investors to explore the option of investing in gold stocks. Here are two gold stocks that have started to gain some ground this week.
Gold Stocks Gaining Momentum #1 Mechel
One of the gold stocks that could be put into investors’ watch lists under these circumstances is Mechel (MTL). It generated impressive gains on Tuesday after the company made a major announcement. According to the company’s creditor Gazprombank, Meckel has decided against buying back the Elgo mine in the far eastern region of Russia.
Gazprombank had held the stake since back in 2016, and Meckel’s decision to not buy it back has come as a major boost to the investors. The company also stated that it has also received an alternative offer pertaining to the aforementioned project.
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The stock jumped by as much as 6.75% after the news broke. Furthermore, since the start of the new year, shares of this gold stock have climbed by as much as 70.6%. Will it remain one of the top gold stocks to watch this year?
Gold Stocks Gaining Momentum #2 B2Gold
The other gold stock that has likely come into sharp focus this week is that of B2Gold (BTG). The company unveiled its preliminary economic assessment with regard to its joint venture in Columbia with AngloGold Ashanti (AU).
The joint venture in question is named Gramalote. The company revealed that the open-pit mine in Columbia is expected to produce as much as 3.85 million ounces of gold over the course of 13.6 years. It is a major development for B2Gold, and it is likely that the stock is going to come into the radars of investors. In the meantime, B2Gold has at least attracted attention from the analyst community this month.
BMO Capital raised its price target on the stock from C$7 to C$7.25. Cormark Securities followed suit raising its target from C$6.75 to C$7 and BofA lifted B2Gold to a target of $6.30 from $5.50.