ALO - Gold Stocks To Watch Right Now; 2 Names Making New Highs This Week
Gold stocks can be an interesting sector to keep your eye on. The gold industry consists of many companies producing and mining for gold. Today the focus is on a few gold stocks that have actually made new 52-week highs this week as opposed to recovering from a pullback that many other gold stocks saw.
First, is mineral exploration company International Tower Hill Mines Ltd. (THM Stock Report). It holds and has rights to own interests in the Livengood gold project area. This area is over 48,000 acres of land. This Vancouver based gold stock has seen a rise in its stock price recently.
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This rise in stock price is partially due to Tower Hill announcing planes to advance the Livengood Gold Project. They believe that the strength in the price of gold due to the stimulus from banks and governments is enough to support the continuation of their gold assets at Livengood Gold. The CEO of International Tower Hill said, “Over the last several years, we have quietly remained laser-focused on improving our geological and metallurgical understanding of the Livengood Gold deposit, which reported a 11.5 million ounce gold resource in our 2017 NI 43-101.”
Its plans are to continue to find more gold while the price of gold is higher right now. Chairman Marcelo Kim said, “Since 2016 we have conserved our cash to maximize optionality for ITH shareholders, and we are well positioned to embark on a new phase for the Livengood project as a result of the favorable macro-economic backdrop for gold.”
Gold Stocks To Watch: International Tower Hill Mines Ltd. (THM) In The Current Market
Currently, the coronavirus pandemic has disturbed everyone’s lives and businesses as well. Still, this gold stock to watch plans to continue moving forward with all of their plans. On May 27th this gold stock saw a price change of $0.62 a share to $0.79 a share. But the next day, May 28th, it rose to a high of $1.09 a share.
Now this penny stock is floating around $1.12 a share as of May 29th. After a shareholder meeting, it was reported that “The shareholders approved, on an advisory non-binding basis (“Say on Pay”), the compensation paid to the Company’s executive officers (94.09% majority) and a 75.43% majority of the shareholders were in favor of re-approving the 2017 Deferred Share Unit Incentive Plan.”
Keep an eye on gold stocks right now. If companies report plans to move forward with big projects, they can see their price rise like THM stock did. As the world gets closer to reopening more mining and business projects will be able to continue again.
Gold Stocks To Watch: Alio Gold
Next, Alio Gold (ALO Stock Report) reached new 52-week highs on Friday. The gold penny stock reached $0.95 during premarket trading. Furthermore, ALO stock traded as high as $0.939 during the regular session. In its most recent announcement, Alio Gold and Argonaut Gold said that shareholders of both companies have approved their merger.
Upon completion of the deal, Argonaut shareholders will own about 76% and Alio shareholders 24% of the merged company. Argonaut Gold prevails as the official name with a closing planned for June.
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“This is a transaction which makes sense for both sets of shareholders. Combining complementary assets into one larger, more relevant company generates significant synergies. With a solid production base of over 235,000 gold equivalent ounces expected this year, a strong balance sheet and strong cash flow generation at current gold prices, we will be well positioned to evaluate and execute on growth opportunities from within the combined company’s development asset portfolio,” said Pete Dougherty, President & CEO of Argonaut at the time of the initial merger update. This comes just weeks after the company sold its San Francisco Mine to Magna Gold Corp.