WALRF - Are Mining Stocks A Good Investment? 4 To Watch
Top Mining Stocks To Watch In November
Throughout all of 2020, mining stocks have been interesting to watch due to the record highs that gold and silver are reaching. On November 6th, gold prices are now lower than the 6-week highs they reached through the night.
Yet still, gold is notably holding a lot of its gains due to recent labor market data. The Bureau of Labor Statistics announced that 638,000 jobs were created in October when analysts and economists predicted this number would be around 595,000. The unemployment level also came down in October compared to September by 1%.
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Mining assets have rallied due to the US elections, primarily as a result of the US dollar depreciating. Regardless of who is elected president, the dollar will potentially be negatively impacted according to analysts. That’s due to the increased levels of stimulus seen throughout the year. In any case, this could positively affect precious metals prices. Now let’s dive in and look at four mining stocks that could possibly make your watch list in November.
Top Mining Stocks To Watch In November: Walcott Resources Ltd.
First let’s discuss Walcott Resources Ltd. ( OTC:WALRF Stock Report ) ( CSE:WAL ) as it has been making some positive advancements in 2020. Walcott Resources is a mining-focused corporation that searches for silver and gold. It aims to acquire resources, explore resources, and mine for them as well. Its primary project at the moment is Australia’s Tyr Project, which currently has resource estimates at around 4,710 grams per ton of silver (g/t Ag).
Additionally, Walcott Resources has an interest in the Cobalt Hill location that searches for high grade gold mineralization. Back in September, the precious metals mining company closed a brokered private placement issuance of 11,463,000 common shares. This was to receive gross proceeds of $2,865,000, to be used for Cobalt Hill’s exploration activities, and its acquisition of 1256714 B.C., as well as more exploration of its properties for working capital.
Walcott Resources then proceeded and acquired 60% of 1256714 B.C. Ltd. Also known as TargetCo. TargetCo owns 100% interest in two active prospective silver and zinc projects in Australia, so this was a significant acquisition for Walcott. On the 3 rd of November the company announced plans to increase the speed in which its Tyr Project silver exploration program will be operating. It will be reviewing its prospective silver targets to create faster progress in its inaugural drilling campaign, with the goal being better results. It will be interesting to see what advancements this mining company is able to make in the near future.
Top Mining Stocks To Watch In November: Wheaton Precious Metals Corp.
Now let’s talk about Wheaton Precious Metals Corp. ( WPM Stock Report ). Wheaton Precious Metals Corp. is a mining company that sells precious metals such as gold, silver, and palladium ores in Canada and all over the world. It currently has agreements for 20 operating mines and 9 development stage projects. On November 5th the company announced that it has entered a precious metals purchase agreement with Caldas Gold Corp. for the Marmato Project in Colombia.
This agreement allows Wheaton to purchase 6.5% of the gold production and 100% of the silver produced up to 190,000 ounces of gold and 2.15 million ounces of silver. After this, it drops to 3.25% of the gold and 50% of the silver for the life of the mine. Wheaton is expected to pay a cash consideration of $110 million, $38 million that is payable within 6 months under customary conditions. The rest is payable during the construction of the MDZ project.
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Following this announcement, WPM stock price is up 2.28% a share. WPM stock was at just $29 a share at the start of 2020, and now is at $50.33 a share. This is due to the price of silver and gold skyrocketing this year, as well as the advancements being made by the company. Wheaton Precious Metals has its third quarter results for 2020 coming on November 9 th after the market close. So on November 10 th , we will see what affect these reports have on its stock price, making it a potential mining stock to watch at the moment.
Top Mining Stocks To Watch In November: Hecla Mining Company
The next company on this list is Hecla Mining Company ( HL Stock Report ), which has performed rather well this year. Hecla is a mining company that focuses on the discovery, acquisition of land, development, and production of precious metals and base metal properties. It primarily offers unrefined gold and silver bullion bars, lead, zinc, and much more. Currently, Hecla owns 100% interest in many mines including the Greens Creek Mine, Lucky Friday Mine, Casa Berardi mine, and more.
Back on October 8 th , the company announced its third quarter production and cash position. In these reports Hecla announced silver production of 3.5 million ounces, and gold production of 41,174 ounces. In addition to this, its equivalent production for silver was 9.0 million ounces or gold of 114,998 ounces. Its cash and cash equivalents equated to $97 million at the end of September. It also announced plans to increase for its fourth quarter exploration program. Hecla’s full third quarter results will be released on November 9 th , and that is when we will truly see the full performance of this mining company.
Top Mining Stocks To Watch In November: Taseko Mines Limited
The final company on this list is Taseko Mines Limited ( TGB Stock Report ). Taseko Mines Limited is a mining company that will acquire, develop, and operate multiple mineral properties. It is here in which Taseko seeks gold, silver, copper, molybdenum, and niobium deposits. It actively holds 100% interest in the Yellowhead copper project, Aley niobium project, Harmony gold project, and the New Prosperity gold and copper project. 75% interest of the Gibraltar mine is owned by the company as well.
On October 26 th , Taseko reported an adjusted EBITDA of $32 million in the third quarter of 2020. Its earnings from mining operations before depletion and amortization was $35.7 million. Stuart McDonald, the President of Taseko stated that this was due to the price increase of copper, going from $2.43 in the second quarter to just under $3.00 in the third quarter. Its cash position increased to $73 million this quarter, which was up $9 million from the end of June. On the day of November 6 th , TGB stock is up 4.97% to $1.03 a share. Just 6 months ago, this mining stock was at $0.32 a share on average, so it has seen great improvement in recent months.