XME - Best Mining Stocks To Watch This Month? 3 Names To Know
Are These Mining Stocks On Your Watch List In January?
One of the most remarkable happenings of the past few months has been the rally in gold. Much of that has happened due to the United States-China trade war. The trade war spooked markets and investors soon parked money in safer assets like gold. However, while many would opt for a New Year’s resolution to work out more or eat healthier, some investors have decided to take on bigger positions in mining and gold stocks.
There are many names to choose from. Investors can decide whether to broadly invest in mining ETFs. These are things like SPDR S&P Metals & Mining ETF (XME – Free Report) and VanEck Vectors Rare Earth/Strategic Metals ETF (REMX – Free Report). On the opposite side, they may decide to take on more risk and buy junior mining stocks. No matter the case, the support that precious metals and mining have gained over the last few months is hard to ignore.
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The rally has continued in the New Year due to the unrest in the Middle East. But even since tensions have subsided, the broader geoeconomic framework continues to lend itself to a bullish case for mining stocks. One way of taking advantage of this rally is by putting together a list of gold stocks, for example. With this in mind, here is a look at 3 top gold stocks investors could invest in.
Best Mining Stock To Watch: Comstock Mining
The first gold stock that could be considered by investors Comstock Mining Inc (LODE – Free Report). On Thursday it soared after the company made a major announcement. Yesterday, Comstock announced that it has decided to sell two properties in Silver Springs and senior water rights of 200 acre-feet. The company is going to get $10 million after selling off these non-mining assets and direct the capital towards more vital projects.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our realignment and transformation has repositioned the Company to first unlock unrealized shareholder value and then create and deliver new value from precious metal based innovations and developments, including our Dayton resource and the MCU joint venture.”
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It is a significant development for Comstock and the market reacted positively to the news as well. The stock soared significantly in premarket trading and ended the day with gains of 9.3%. But you should also note that shares have pulled back since hitting those highs. On Januar7 9 the stock dropped below $0.55.
Best Mining Stock To Watch: Royal Gold Inc. (RGLD)
Another gold stock that may be worth watching is that of Royal Gold, Inc (RGLD – Free Report). On Wednesday, the company provided an update on its operations for the fiscal second quarter of 2020, which is for the period that ended on December 31.
Royal Gold announced that its fully owned subsidiary RGLD Gold AG sold almost 60,000 gold equivalent ounce which consisted of 47,000 ounces of gold. Other than that, the company also sold 514,000 ounces of silver and 2,000 tons of copper. These are highly promising developments and investors could keep an eye out for this stock over the coming days as gold finds its footing.
Best Mining Stock To Watch: Agnico Eagle Mines (AEM)
One of the other more popular gold mining stocks to watch recently was Agnico Eagle Mines (AEM – Free Report). It’s one of the largest gold mining companies by market cap and jumped over 50% in 2019. For most of 2019’s fourth quarter and into this year, AEM stock has been range-bound. It has traded as low as $56.80 and as high as $63.28. This week, Agnico was trading closer to the lower end of that range.
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The company has generated an average annual free cash flow of $207 million from 2014 to 2016. Furthermore, the company has an attractive dividend offered to shareholders. It raised its dividend 40% to $0.175 for the 4th quarter. This continues its trend of raising distributions consistently over the last few years.
Thanks to this progress, the analyst community has responded favorably to the company. Last month, Barclays upgraded Agnico Eagle to Overweight from Equal Weight. It also increased its price target from C$69.33 to C$92.63.