GSM - How Are Mining Stocks Performing Amid Boom In Electric Vehicle Stocks?
Top Mining Stocks To Watch
It is no surprise that certain mining stocks are performing well because of electric vehicles. Electric vehicles are the latest trend in the automotive industry. These EVs have taken over and are driven by millions of people around the world in 2020. The largest of these companies is Tesla Inc. ( TSLA Stock Report ) which has sold the most electric vehicles worldwide to date. Most electric vehicles are powered using lithium ion batteries. While there are other options, these batteries seem like the most common when it comes to electric vehicles. For example, on November 16 th , Bentley stated it will be using lithium ion tech for its upcoming EV.
Read More
- Top Mining Stocks To Watch Before The End Of The Year
- Looking For Mining Stocks To Buy Right Now? 3 Names To Watch
Often when there is good news with a company like Tesla, it can cause mining stocks to go up. It has been projected that the electric vehicle battery market is going to grow by billions as years go on. This sector has still been hit with the effects of the pandemic like many other companies though. Despite this there are many mining stocks that are performing well in 2020. The demand for EV batteries will go up with the demand for the vehicles, which will happen as soon as the economy recovers more. Let’s look at the top mining stocks to watch in November.
Top Mining Stocks To Watch: Lithium Americas Corp.
The first mining stock to watch is Lithium Americas Corp. ( LAC Stock Report ). Lithium Americas Corp. is a resource company that explores for lithium deposits. The company holds interest in the Cauchari-Olaroz Project, Thacker Pass project, and more. These projects are located in Argentina and Nevada. LAC stock price has gone up significantly in 2020. So let’s take a look at the company’s recent advancements.
On November 16 th , Lithium Americas reported its financial results and highlights for the third quarter of 2020. It announced that project activities are active with COVID-19 protocols or will be at the start of 2021. The company’s total assets decreased due to closing a transaction with Ganfend. It also went down because of proportional consolidation of Cauchari-Olaroz with transition to equity accounting for the project investment. Its cash decreased because of capital expenditures on its properties. While this has caused LAC stock to go down, it is still significantly up in 2020.
Top Mining Stocks To Watch: Livent Corporation
The next mining stock is Livent Corporation ( LTHM Stock Report ). Livent is a manufacturing company that makes and sells lithium batteries. The company also sells polymer and chemical synthesis applications as well. It operates in North America, Latin America, Europe, Middle East, Africa, and the Asia Pacific. Livent offers lithium compounds for use in applications like lithium hydroxide for potteries as well. Let’s see what this company has been up to recently.
[Read More] 5 Mining Stocks To Watch Right Now For a November Rebound
On November 5 th , like many others Livent released its third quarter results. The company has extended its hydroxide supply agreement with Tesla. This is great news for the company already. Its revenue fell, which was not a surprise due to COVID-19 related issues. Although it experienced a net loss, its Tesla partnership has allowed the company to remain positive. In fact, LTHM stock price is just around its one year high at $16.08 a share on average as of November 23 rd .
Top Mining Stocks To Watch: Platinum Group Metals Inc.
The next company to watch is Platinum Group Metals Inc. ( PLG Stock Report ). Platinum Gorup will acquire, explore, and develop platinum and palladium properties. But it also searches for rhodium, gold, ruthenium, iridium, copper, and nickel deposits. It actively holds 50.02% interest in the Waterberg project that is located in South Africa in the North Limb of the Western Bushveld complex.
On September 30 th , the company announced it was added to the S&P/TSX SmallCap Index. Then on October 8 th , the company announced a non-brokered private placement. This was to sell 1,146,790 common shares for $2.18 each for gross proceeds of $2.5 million. The intention is to use the net proceeds for pre-development costs on the Waterberg Project, partial debt repayment, and corporate / working capital purposes. This private placement was successfully closed on October 15 th . PLG stock price is performing well as a result, going up from $1.59 a share to $2.45 a share in just 6 months. That is what makes Platinum Group Metals a great contender for this list.
Top Mining Stocks To Watch: Ferroglobe PLC
The final company on this list of EV battery stocks to watch is Ferroglobe PLC ( GSM Stock Report ). Ferroglobe sells silicone chemicals used in personal care, health care, construction, electronics, and more. It also produces silicon metal to be used in steel manufacturing and more. Additionally the company will provide ferrosilicon products for producing stainless steel, carbon steel, and other steel types. Ferroglobe operates quartz mines in Spain, Canada, United States, and South Africa too.
Back in its second quarter results, Ferroglobe announced sales drops and net losses despite its adjusted EBITDA going up. The CEO of the company, Marco Levi said, “Given the unprecedented operating environment created by COVID-19, the business has endured a number of challenges during the quarter.” Now the company has scheduled a third quarter earnings investor call for November 24 th. So now we wait to see what will come next for the silicon producer. Considering silicon is a material used with electric vehicles, GSM stock has fared well in 2020. At the start of the year, this mining stock was at $0.92 a share.
Now on November 23 rd , GSM stock price is at $1.40 a share on average. The market for electric vehicles has grown so large that now associated industries are performing well as a result. As a high performing sector there are plenty of EV related mining stocks that could make your watch list. It will be interesting to see if this sector can bounce back even more when 2021 arrives.