NGD - Gold Stocks To Watch As Precious Metal Hits 8-Year Highs
There is nodoubt that the rally in gold was one of the most remarkable events in thefinancial sector in 2019. That’s expected to continue in 2020 as well. Lastyear, there had been prolonged uncertainty in the market due to the UnitedStates-China trade war. This year has started with unrest in the Middle East.
The killing of a leading Iranian General by the United States has created fresh turmoil in the markets. That has resulted in another rally. This could also be a good time to put together a list of gold stocks to watch.
Gold Stocks To Watch: New Gold Inc. (NGD)
Finally, New Gold Inc. (NGD Stock Report) has caught more attention in 2020 as gold prices have hit new milestones. The company has operations across the globe with a portfolio of producing assets.
These include the New Afton Mine in Canada, its Mesquite Mine in the US, and the Cerro San Pedro mine in Mexico. New Gold also has 100% ownership in the Rainy River and Blackwater projects in Canada.
Despite missing earnings estimates for the third quarter, favorable conditions for gold prices have helped the company. Total production or the quarter came in at 128,899 ounces of gold equivalent, and for the 9 months ended in September, that production figure was 384,719 ounces of gold equivalent.
Though revenues missed estimates, New Gold has taken a hard stance at fixing its balance sheet. In doing so, the company managed to decrease its debt position by $100 million. This helped the company free up $135 million in cash and cash equivalents.
Gold Stocks To Watch: Hecla Mining Company (HL)
The firstgold stock that could be considered by investors under these circumstances isthat of Hecla Mining Company (HL Stock Report). The Hecla stock recorded significantgains on Tuesday after the company announced its gold and silver productionreport. The company reported that in the financial year of 2019, its silverproduction rose by a whopping 22% year on year.
On the otherhand, gold production rose 4% year on year to hit 272,873 ounces. It is asignificant development for the company and the market thought the same, whichis why the stock rallied by as much as 3% n the back of the news. This is astock that could be tracked by investors at this point.
Gold Stocks To Watch: US Gold Corp (USAU)
The other gold stock worth considering is US Gold Corp (USAU Stock Report), which has been on a roll since November. Since the middle of November, the U.S. Gold Corp stock has gained as much as 40%.
On Tuesday it recorded further gains of 4%. Back in December last year, the company had announced the establishment of its advisory board and that has also been regarded as a positive by the market.
Last month the company formed its Advisory Board. It appointed two new members. At a time when gold prices are rising, U.S. Gold Corp stock could prove as one to watch.