KL - Can You Make Money With Silver & Gold Stocks? 4 To Watch Right Now
Are These Mining Stocks On Your Watch List?
The sector for mining stocks is ever-growing in 2020, and as the year goes on it seems to be continuously making progress. On November 5 th , gold prices went up to a two week high at the same time as the dollar slipped. This is due to investors hoping for bigger economic support measures, as some speculate on the outcome of the U.S. Presidential election. In this time, US gold futures have gained 1.3%, and spot gold was up 0.9% at $1,919.61 per ounce.
Despite these positives, US workers are continuing to file for unemployment benefits. While the unemployment number has gone down in recent Labor Department reports, it was still more than expected. This is not effecting gold prices too much though, as investors are primarily focused on the election at the moment.
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The long and short of it is whoever becomes President, the US dollar could remain weak. This could become a positive driver for the price of gold. In November, there are also plenty of companies releasing quarterly results. So let’s take a look at some recently trending mining stocks.
Top Mining Stocks To Watch: Walcott Resources Ltd.
Walcott Resources Ltd. ( OTC:WALRF Stock Report ) ( CSE:WAL )is a mining company with a primary focus on silver and gold property acquisitions, exploration, and mining. The company operates the Tyr Project in Australia which has resource estimates at around 4,710 grams per ton of silver (g/t Ag). The company also holds interest in the Cobalt Hill property that identifies locations of high gold mineralization.
On September 18 th , Walcott announced that it had closed a brokered private placement to issue 11,463,000 common shares for gross proceeds of $2,865,750. These net proceeds received from the private placement are going to be used for Cobalt Hill’s exploration activities, completed the acquisition of 1256714 B.C., and exploration of acquired silver projects for working capital purposes.
Well, after receiving these gross proceeds, Walcott did in fact close the acquisition of 60% of the issued and outstanding shares of 1256714 B.C. Ltd. Aka “TargetCo”. This is big as Targetco owns a 100% interest in two active prospective silver and zinc project in Australia, including the Tyr Silver Project and the Century South Silver-Zinc Project. Now on November 3 rd , Walcott Resources announced that it will be speeding up its exploration program on the Tyr Silver Project. The plan is to review prospective silver targets created previously, to create new quick progress for its inaugural drilling campaign.
Top Mining Stocks To Watch: Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. ( KL Stock Report ) is a gold mining company that focuses on the acquisition, exploration, development, and operation of various properties. Its largest properties include the Fosterville Mine in Australia, and the Macassa Mine in Ontario, Canada. Additionally, Kirkland has an agreement with Newmont Corporation ( NEM Stock Report ) to assess regional exploration opportunities on some of its properties. In recent news, Kirkland Lake has reported its earnings for the third quarter of 2020. This quarter included the first 9 months of 2020. Let’s dive right in and look at the accomplishments this mining stock was able to make.
In this quarter, Kirkland Lake Gold brought in adjusted net earnings of $249.3 million or $0.91 per share, which was a year over year increase of 49%. This was also a 14% increase from the second quarter of 2020. Its net cash provided by operating activities was $431.1 million, increasing 52% year over year and 22% from last quarter. In terms of its balance sheet, the company’s cash at September 30 th , 2020 increased 58% year over year to $848.5 million. This positive financial report released on November 5 th has allowed KL stock price to go up 6.74% to $49.71 a share on average.
Top Mining Stocks To Watch: Franco-Nevada Corporation
Another mining stock that just released financial results is Franco-Nevada Corporation ( FNV Stock Report ). The company is a royalty and stream mining company with a focus on gold. It operates in many countries including the United States, Canada, Europe, Australia, and more. It will search for precious metals like gold, silver, and platinum group metals, as well as things like oil and natural gasses.
On November 4 th 2020, Franco-Nevada reported its third quarter results for 2020. It was here in which the company arrived with record revenue, EBITDA, and net earnings in the third quarter. All of the company’s material mining assets have returned to normal operations in the third quarter. Its adjusted EBITDA was $235.1 million, a new record of 22% higher year over year. Its revenue was up 19% to $279.8 million.
Franco’s net income Rose 51% to $153.9 million. So this must’ve had a good effect on FNV stock price right? Well, that would be correct. On the day of November 5 th , FNV stock is up 7.38% to $148.8 a share on average. Some analysts predicted the company would beat estimates, but not by such a large margin.
Top Mining Stocks To Watch: Endeavour Silver Corp.
Endeavour Silver Corp. ( EXK Stock Report ) is a mining company with a focus on precious metals such as silver and gold. It acquires, develops, explores, extracts, processes, and refines these precious metals at its mining properties. These are located in both Mexico and Chile. Endeavour was forced to slow its mining operations at one point in the year, but has since been able to recover its operations quite a bit as the year has progressed.
This week Endeavour Silver Corp. released its third quarter 2020 financial. The company’s net income was at $0.5 million, much better than the loss of $6.8 million in the same quarter 2019. Endeavour claims its earnings would have been higher, but its general and administrative expenses of $1.6 million got in the way with increased metal inventory as well.
Its revenue went up 29% year over year to $35.6 million as well. In terms of metal production, it produced a total of 1.8 million silver equivalent (AgEq). This includes 932,837 oz silver and 10,041 oz gold. As a result of these financial results, EXK stock is up 20.55% to $3.95 a share on November 5 th , 2020.
Top Mining Stocks To Watch: New Gold Inc.
The last company on this list, New Gold Inc. ( NGD Stock Report ), is another that just released financial results. New Gold Inc. is a mining company that explores for gold, silver, and copper deposits at locations in Canada and Mexico. It operates the New Afton mine in Canada, the Rainy River mine in Canada, as well as the Cerro San Pedro mine in Mexico. This also includes the Blackwater project in Canada, and the company owns 100% interest in all of these.
On November 5 th the company announced its third quarter results for 2020 as of September 30 th . Its total production was 115,536 gold equivalent ounces in the quarter, less than the 128,889 gold equivalent ounces the previous year. This includes 78,959 oz gold, 171,825 oz silver, and 18.2 million lbs copper. Its revenue grew to $174 million from $168 million year over year. But the revenues missed in the 9 month period, falling from $491 million to $444 million. This is evidently due to negative effects caused by the pandemic. Despite some of these negatives, the company is happy about the performance at some of its mines.
The CEO of New Gold, Renaud Adams said, “We are very encouraged by the solid performance from the Rainy River Mine as the operation has continued to meet, or exceed, all key operational and cost targets and has substantially completed all deferred construction capital with the objective of returning to normalized sustaining capital levels.”
On the date of earnings, New Gold spiked to $2.14 a share at one point on November 5 th , but has since come back down below $2 during after hours trading. Will the recent surge in gold help NGD turn things back around later in November?