NG - Top Gold Stocks & Mining Stocks To Trade Or Fade As Wall Street Adjusts

Are Gold Stocks Set To Head Higher This Month?

The general sentiment for gold stocks was more of a “watch and wait” as opposed to an all-out scramble during the first week of 2020. But since then, the sentiment has become much clearer in supporting a bullish case for precious metals as a whole. Since consolidating during the early part of this year, major gold ETFs like the SPDR Gold ETF (GLD – Free Report) and VanEck Junior Gold Miners (GDXJ – Free Report) have turned around in bullish fashion.

Since January 13, both of these ETFs have climbed 1.7% and 5% respectively. As you’ll notice, the junior miners have outperformed the general gold sector. With that, it’s justifiable to emphasize more of a focus on these smaller-cap companies for the time being.

Supporting ideas like this, an article that was published on The Street expresses the fact that it may be time for investors to give their attention to the “little guys” aka the Small Cap Gold Stocks. Within this article, The Street talks about the big advantages investing in small-cap gold stocks holds above blue chips saying “the juniors tend to be more volatile than the majors, jumping faster in rallies, and falling further in routs. Now that gold prices seem to be on the march higher we can expect juniors to race ahead of the major gold stocks.”

Gold Stocks To Trade or Fade: Freeport McMoRan FCX

Mining giant, Freeport McMoRan (FCX – Free Report) reported earnings and sales estimates this week. The company targets the exploration, development, mining and million of things like gold, copper, silver and other metals. Freeport reported adjusted earnings per share of $0.02 for the fourth quarter of 2019. Furthermore, the company saw revenues grow by 6.2% on a year-over-year basis.

What’s also important is the company’s outlook for this year as well. In 2020, Freeport expects its consolidated sales volume to be around 800,000 ounces of gold, 3.5 billion pounds of copper, and 88 million pounds of molybdenum. The projection also includes over 720 million pounds of copper, 105,000 ounces of gold and 22 million pounds of molybdenum for Q1 2020 as well. Will this be enough to continue whetting investors’ appetites during the first few months of the new year while Wall Street digests additional market risks?

Mining Stocks To Trade Or Fade: Northern Dynasty Minerals Ltd

Next is one of the top mining stocks to watch this week. Northern Dynasty Minerals (NAK – Free Report) had a steady performance for the majority of the week right up until Thursday. On January 23, shares of Northern Dynasty took off running right from the opening bell. After hitting highs of $0.4649, the stock pulled back to close at $0.4528.

What’s more, was that during after-hours trading, the mining stock ended up climbing once again to highs of $0.46. In addition to the recent money being raised by the company are the insider buys that have gone on since the middle of the month. Gordon Keep, Steven Decker, Ronald Thiessen all purchased common shares of the company totaling more than 700k collectively. With regard to its capital raising, Northern Dynasty has been raising millions to further its Pebble Project in Alaska. Will this bear fruit in 2020?

Gold Stocks To Trade Or Fade: NovaGold Resources Inc.

Next on this list, precious metals company NovaGold Resources (NG – Free Report) hit new 52-week highs on Thursday after reaching $9.48 during its morning session. Besides the surge in gold prices, the company also released strong news. NovaGold reported its 2019 financial results on January 23.

There were several highlights to speak of. First, the company obtained significant federal and state permits. These included:

• The Alaska Department of Natural Resources approved the Reclamation and Closure Plan.
• The Waste Management permit was issued by the Alaska Department of Environmental Conservation.
• Alaska Department’s Division of Mining, Land, and Water issued the final land leases, land use permits, and material site authorizations for the proposed transportation facilities on State lands and the final easements for the access road and fiber optic cable.

[Read More] Top Gold Stocks To Watch Right Now After Key Updates

In addition, NovaGold discussed how its joint-project with Barrick Gold (GOLD – Free Report), Donlin Gold, has progressed. “The achievements of the past year – from securing major State permits and advancing project engineering and optimization to maintaining broad and all-encompassing community engagement – reflect our collective commitment to a consistent vision that has arisen from a long-lasting collaboration among NOVAGOLD, Barrick, and the Native Corporation property owners, Calista and TKC,” stated Gregory A. Lang, President and CEO of NovaGold.