NGD - 4 Small-Cap Mining Stocks To Watch Right Now
4 Top Mining Penny Stocks To Watch
Mining stocks have been somewhat of a hot commodity in 2020. The price of silver and gold, for example, has been increasing in price in recent times. What makes small-cap mining stocks appealing to investors is the price. Penny stocks, for example, are considered any asset trading under $5. So this means that people can invest in mining penny stocks at a low cost. While these types of stocks are volatile, there is still profit to be made with them.
Another aspect attracting investors to mining stocks, is the current state of the economy. Many new investors are showing up in the market to try and make back some of the losses this year caused. That makes these stocks under $5 a perfect option for those looking to enter the market. The most common mining companies are those that search for gold and silver. So gold stocks and silver stocks are generally what investors are looking for.
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Heading into the next quarter and the new month of October, many of these stocks are in recovery mode. The big drop in silver and gold prices this month put a dent in some of the epic rises we saw within the sector this year. With that being said, let’s look at 4 small-cap mining stocks that have gained ground this year.
Mining Stocks To Watch: Freeman Gold Corp.
Let’s first talk about Freeman Gold Corp. ( CSE: FMAN Stock Report ) ( OTC: FMANF ) on this list of mining penny stocks. Freeeman is a gold company that primarily will work on mineral exploration at multiple places around the world. The company acquires, explores, and develops a variety of mineral properties under its umbrella. One of these is the Lemhi Mine claim, which has more a 5000-meter diamond drill program going on at the moment. In addition to gold deposits, the company also runs copper and silver deposits.
In recent news for Freeman Gold, it acquired a back in-right from Yamana Gold Inc. This back-in right is for its Lemhi Project mineral property. Freeman gave Yamana Gold Inc. more than 4 million common shares in the deal. In the Lemhi project’s historical region, there was two mining claims called Moon #100 and Moon #101. Recently the company acquired these claims, adding it to its already large involvement at the Lemhi Project.
The CEO of the company Will Randall said, “The acquisition of the Moon Claims achieves this objective and mitigates the risk of limiting future resource estimates by excluding any ounces contained within the claims and, just as importantly, limiting further ounces due to pit design constraints.” Now, Freeman can incorporate these new claims into its future work. It received a full property package with no back-in rights at all.
Mining Stocks To Watch: New Gold Inc.
Now let’s talk about New Gold Inc. ( NGD Stock Report ) on this list of small-cap mining stocks. New gold is a gold mining company that actively is developing many mineral properties. The company searches for gold, silver, and copper deposits on its properties. The company operates 4 different mines that are located in both Canada and Mexico.
Recently the company closed a sale of its Blackwater Project to Artemis Gold for $190 million. The CEO noted it as being a key transaction for the company that will allow it to continue taking advantage of its Blackwater property.
New Gold’s revenue has gone down 7.9% in the last year, but it seems like revenue and profit growth trends could have sparked more favorable sentiment this year. NGD stock price has gone up 53%. Why did this happen if New Gold made a loss in the last 52 weeks? Well, it seems as if investors are focusing more on revenue and growth at the moment.
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A few weeks ago, New Gold attracted the attention of the analyst community. CIBC upgraded New Gold to Outperform from Neutral. The firm also adjusted its price target on the stock to C$3.43 from C$2.48 previously.
Mining Stocks To Watch: Gold Resource Corporation
Another one of the mining stocks to watch is Gold Resource Corporation ( GORO Stock Report ). Gold Resource Corporation is a mining company that is based in the United States. The company actively explores, develops, produces, and sells gold and silver to Mexico and the US. Additionally, it explores for copper, lead, and zinc. Gold Resource’s most active property is the Aguila project, which has 18 mining concessions. This equates to more than 24,372 hectares of land in Mexico.
On September 28 th , Gold Resource Corporation declared its monthly instituted dividend of one-third of a cent per common share for September 2020. This is payable to shareholders of record as of October 12th, 2020, on October 23rd, 2020. Since July of 2010, the company has returned $115 million to its shareholders in monthly dividends.
Additionally, it allows shareholders the option to exchange their cash dividends for physical gold and silver, with delivery. While gold stocks like Freeman and New Gold have pushed higher, GORO stock has remained in a somewhat sidways trend.
Mining Stocks To Watch: Northern Dynasty Minerals Ltd.
Last on this list of mining stocks is Northern Dynasty Minerals Ltd. ( NAK Stock Report ). This company explores different mineral properties located in the United States. Its main mineral property is the Pebble copper, gold, and molybdenum project that has 2402 mineral claims covering 417 square miles. This project is located in southwest Alaska. One recent news piece regarding the company is a bit controversial.
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The CEO of the company abruptly stepped down after tapes were released of him boasting about his connections to state and federal leaders. Despite this recent controversy, it did not have a large scale effect on NAK stock price. Since this news came out, NAK stock has continued consolidating. Could the company come back from this?
Well, if Northern Dynasty Minerals appoint a new CEO that investors believe in, it could be good for the company, obviously. Still, in 2020, the NAK stock price is up more than 100% a share.