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Top Mining Small Cap Stocks To Watch

Will these mining small cap stocks go up in the market?

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This article was originally published by GoldStocks

Will these mining penny stocks go up in the market?

Everybody has heard of penny stocks at some point if you have been investing in the market. Mining penny stocks are company’s that mine for materials such as gold, silver, copper, and more. Many investors have turned to mining penny stocks under $5 as a way to enter the market at a low cost. Some new traders will think that penny stocks are just a quick way to make a profit, but it is not that simple. While this situation can exist, it is also possible to lose money just as fast as you can make it with these cheap stocks.

There are plenty of mining penny stocks that will reach very high prices on the regular, but does that mean you should buy them? Well, it is very important to look at the trading volume of these companies. If a mining penny stock is at a high price but its volume is below its average, it could potentially underperform soon. While this is not a guarantee, it happens a lot in the market.

One common question that investors may have is, how do you buy or sell penny stocks? There are two types of investments you can make when buying penny stocks. There is long term investing and short term investing. This is a personal choice depending on what your goals are for investing. You should also look at the market for mining stocks at the moment. For example, mining companies are in a volatile position right now because of inflation and the pandemic. Let’s now take a look at three mining penny stocks that could make your watchlist in September 2021.

Top Mining Penny Stocks To Watch

  1. New Gold Inc. (NYSE: NGD)
  2. Harmony Gold Mining Company Limited (NYSE: HMY)
  3. Transocean Ltd. (NYSE: RIG)

New Gold Inc. (NYSE: NGD)

New Gold Inc. is a mining penny stock we talk about a lot on goldstocks.com. This is due to its frequent momentum in the market. This is a mining corporation that is developing mineral properties in many locations around Mexico and Canada. The company’s current mining projects have a focus on gold, silver, and copper deposits at its mines. Its locations include the Rainy River mine, Afton mine, Cerro San Pedro mine, and a few other mines.

2 days ago, New Gold provided an operational outlook. The company’s consolidated gold equivalent production is now expected to be between 405,000 and 450,000 by the end of 2021. The company’s consolidated copper production guidance remains unchanged. The company now expects its all-in sustaining costs to be around $1415 to $1495 per gold equivalent ounce.

President and CEO Renaud Adams said, “While the reduction in our near-term guidance at Rainy River is unfortunate, I remain confident the mine has reached an inflection point, as evidenced by the free cash flow generated in the second quarter and the mine is on track to deliver an improved second half of the year.” Now that you know the latest from the company, will NGD enter your mining penny stock watchlist in mid-September?

Harmony Gold Mining Company Limited (NYSE: HMY)

Harmony Gold Mining Company Limited is a mining stock that has been going up in market value recently. This is a company that mines for and extracts gold at many owned properties. Harmony is involved in the exploration, extraction, and processing of gold, silver, copper, uranium, and more.

In August, Harmony released a trading statement and operating update for the year ending June 30th, 2021. There were a lot of positive results from Harmony that were announced in this update. For one, the company experienced a large increase in earnings and revenue. Harmony additionally had a higher reported translation gain on its U.S. dollar-denominated debt year over year.

This is a penny stock that often moves with the price of gold itself. When investing in mining stocks, it is important to look at the overall sector. For example, if gold experiences a shortage, it will likely impact the price of HMY stock. On September 14th, HMY stock is up nearly 5% in the market. Is HMY a contender for your list of mining penny stocks to watch this month?

Transocean Ltd. (NYSE: RIG)

Transocean Ltd. is a penny stock that just went up by 8.11% in the market. This is a company that provides offshore contract drilling services. Transocean contracts drilling rigs, equipment, and work crews. The company owns or has partial ownership in 37 mobile offshore drilling units, 27 deepwater, and 10 harsh environment floaters.  

Back in early August, this oil drilling penny stock reported its second-quarter results for this year. The company’s total contract drilling revenues were at $656 million for the quarter. Transocean’s revenue efficiency was 98% compared to 97.4% the previous quarter. Now the company has announced that it secured a $252 million contract for a newbuild ultra-deepwater drillship, the Deepwater Atlas. This deal includes a mobilization fee of $30 million. This contract was awarded by BOE Exploration & Production LLC, and is due to the final investment from BOE and the Shenandoah working interest owners to sanction the previously announced Shenandoah project in the U.S. Gulf of Mexico.

President and CEO Jeremy Thigpen said, “We are extremely pleased to have secured the maiden contract for the Deepwater Atlas; the first of our two 8th generation ultra-deepwater drillships that will enter the market in 2022, both of which will be outfitted for 20,000 psi ultra-deepwater well operations. With so much new information to keep in mind, is RIG stock going to make your penny watchlist right now?

Mining Penny Stocks Under $5

There are many mining penny stocks one can watch that are under $5. That is why keeping up with the latest in the market is very important when investing in these cheap assets. Overall, it is important to remember how high-risk penny stocks are. Knowing how to invest in penny stocks and how to day trade penny stocks is important knowledge to have. So which mining penny stocks will make your watchlist this month?

The post Top Mining Penny Stocks To Watch in Mid-September appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

Articles

Commodities and Cryptos: Oil’s path higher, Gold turns positive, China’s Bitcoin blow

Oil Crude prices continue to climb higher as both short-term supply and demand fundamentals suggest the oil market will remain tight throughout the winter. …

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Oil

Crude prices continue to climb higher as both short-term supply and demand fundamentals suggest the oil market will remain tight throughout the winter.  The crude demand outlook is turning very upbeat as some scientist’s models predict a steady decline in COVID cases through March.  Holiday bookings will continue to pick up, supporting jet fuel demand and a trucking demand crisis will likely mean diesel demand will remain very strong.

A cherry on top for the bullish outlook is that low natural gas inventories and a cold winter for the northern hemisphere could mean added demand for crude as an alternative energy source.  Today’s rally in crude prices is impressive as it has been a steady climb higher this week, alongside a strengthening dollar that normally dampens appeal for commodities.   Oil prices have one direction to go for the remainder of the year and that is higher.

Before the New York open, WTI crude softened after Iranian Foreign Minister Hossein Amirabdollahian said Iran nuclear deal talks will resume soon.  Expectations for sanction relief for Iran have diminished since Iran’s inauguration day.  Negotiations will be a long drawn-out process that will likely require compliance before the US gives any sanction relief.  Extra Iranian barrels of crude seem unlikely to be a 2021 story.

Gold

Gold prices turned positive after Evergrande’s woes extended beyond China.  US Evergrande investors reportedly have not yet received interest payments and the China Evergrande New Energy Vehicle Group Ltd has a serious shortage of funds.  It looks like China won’t save Evergrande but will try to contain any systemic risks, which should lead to some safe-haven flows for bullion.

Gold has been battling against a stronger dollar that stemmed from surging Treasury yields post-Fed.  Gold is in a very tough spot and volatility will remain elevated with the risks remaining to the downside.  The US growth story will continue to improve if COVID modelers are right about a steady decline in COVID cases through March.  If Evergrande’s fallout is contained over the weekend, gold could be vulnerable for a test of the $1700 level.

Bitcoin

Bitcoin was dealt a major blow after China’s central bank said all cryptocurrency transactions are illegal and must be banned.  Bitcoin initially fell over 5% and the other top coins dropped around 10%.   Overseas exchanges that offer Chinese residents services are illegal, also taking aim at Chinese nationals who work at those exchanges are at risk of an investigation.  Bitcoin, Ethereum, and Tether were specifically named as cryptos that can’t circulate in China.

Beijing withheld banning possession of cryptocurrencies, which would have dealt a massive blow to the entire crypto space.  A banning of possession of cryptos probably would have sent everything crypto 20% lower.  If you are a Chinese crypto holder, you might be deciding now is the time to cash out.  Three years ago, crypto was heavily centralized in China, with over two-thirds of the mining happening there.  If Chinese crypto holders fear a ‘possession ban’ is looming, a tremendous amount of selling from old wallets may occur.

Bitcoin remains extremely vulnerable on the break of the $38,000 level, which could trigger momentum selling to the $35,000 level.

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7 Materials Stocks to Buy as Investors Look Forward to 2022

While materials stocks occupy the undesirable quality of competing for the title of most boring investment category, Wall Street might very well apply…

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While materials stocks occupy the undesirable quality of competing for the title of most boring investment category, Wall Street might very well apply a premium for dull holdings. For instance, while the S&P 500 index has been a solid performer — up 18% on a year-to-date (YTD) basis — over the trailing month, it’s down just under 1%.

Concerns about domestic economic stability, along with rumblings overseas has investors spooked. Not surprisingly, many folks are deciding enough is enough, taking their money out of risky ventures. While the U.S. market isn’t exactly a sterling opportunity, the reality is that over the long term — as legendary investor Warren Buffett implied — America represents a solid place to grow your wealth. And that sets up an intriguing scenario for materials stocks.

As you know, one of the reasons for President Joe Biden’s election victory last year was his promise to “build back better.” What that slogan translated to was a multi-trillion-dollar infrastructure bill, an initiative that if passed would augur well for materials stocks. Of course, fiscally conservative Republicans and moderate Democrats aren’t exactly thrilled at the scope of the proposal. Per the Washington Post, Biden is attempting to broker a truce within his own party ranks.

Given the acrimony — and sometimes sheer chaos — of the Washington machinery, it’s not entirely clear what will come of the infrastructure bill. But in terms of the viability of materials stocks, prospective investors might not need to worry so much about domestic politics. As it turns out, the situation in China — particularly the liquidity crisis of major property developer China Evergrande (OTCMKTS:EGRNF) — is much worse.

Therefore, a combination of faith in the American political process and cynicism that not many stable opportunities exist abroad casts a favorable light on boring but reliable companies dedicated to rebuilding from the novel coronavirus disaster.

Volatility-weary investors may want to consider these materials stocks:

  • International Paper (NYSE:IP)
  • Celanese (NYSE:CE)
  • LyondellBasell (NYSE:LYB)
  • DuPont (NYSE:DD)
  • Nucor (NYSE:NUE)
  • Southern Copper (NYSE:SCCO)
  • Olin Corporation (NYSE:OLN)

Just to be clear, boring investments don’t necessarily equate to insulation from red ink. As U.S. Treasury Secretary Janet Yellen reminded us in an op-ed for the Wall Street Journal, we’re not exactly out of the woods either — far from it. Thus, it’s best to approach these materials stocks with the same due diligence as you would any other business sector.

Materials Stocks to Buy: International Paper (IP)

Source: Mark ONCE / Shutterstock.com

At first, you might be forgiven for rolling your eyes at International Paper. While materials stocks never registered highly on the excitement scale, International Paper also appears to be irrelevant. With so much emphasis placed on going green — and therefore digital — there doesn’t seem to be much room for IP to grow. The Covid-19 crisis has also placed importance on contactless transactions.

Nevertheless, growing is exactly what it’s doing right now. Certainly, 2020 was a rough year for International Paper, with its revenue down 8% from 2019’s tally. However, in the trailing-12-month period, the company is on course to generate $21.3 billion, up nearly 4% from 2020’s result. That’s not bad for a seemingly anachronistic investment.

In reality, materials stocks form the physical backbone of our economy, and International Paper is no different. True, we may be attempting to reduce our dependency on paper, but thanks to the mercurial rise of e-commerce during the lockdowns, packaging demands have accelerated. Additionally, IP is directly linked to seemingly mundane but vital goods like baby diapers and personal hygiene products.

Celanese (CE)

A photograph of various medical tubes attached to equipment in a hospital.Source: sfam_photo / Shutterstock.com

One of the peculiar dynamics of materials stocks is that while the segment as an investing opportunity doesn’t always bring the pizzazz, the underlying products and services are vital to everyday living. Take Celanese as an example. A global chemical and specialty materials firm, it’s not exactly a household name. However, it’s no hyperbole to suggest that Celanese represents the difference between life and death for its innovations’ ultimate end-users.

Among the many solutions the materials company provides, it has a robust healthcare and life sciences business. From drug delivery methods and devices to surgical and medical consumable solutions (i.e., tubing, respiratory equipment, dental products), it’s very likely that we’ve all come in contact with the Celanese brand.

If that wasn’t enough to pique your interest, the company also represents a vital cog in the 5G rollout — that’s right, it’s not just telecom shares that you should consider but also materials stocks! In this case, Celanese lends its hand through expertise in liquid crystal polymer solutions and other high-performance thermoplastics.

Materials Stocks to Buy: LyondellBasell (LYB)

A LyondellBasell production plant in Wesseling, Germany is seen at dusk.Source: Flagmania / Shutterstock.com

For those who are looking for value in their materials stocks, you might want to check out LyondellBasell. Based in the Netherlands, LyondellBasell is one of the world’s largest plastics, chemicals and refining companies. From high-level industrial applications to the most mundane activities, LYB features “background” relevance across the board.

For instance, a major component of LyondellBasell’s everyday solutions is in food packaging. According to Grand View Research, the global ready-made meals market reached a valuation of $159.15 billion in 2019, with experts predicting that it will expand at a compound annual growth rate of 5.5% from 2020 to 2027. That translates to global revenue of $244.3 billion by the end of the forecasted period.

Why is this important for LYB stock? The underlying company recognizes that consumers are looking for “the quick and easy solution” in their packaged food products, an attribute that LyondellBasell specializes in.

Best of all, LyondellBasell is the world’s largest licensor of polyolefin technologies, which have myriad applications in industries ranging from medical, filtration and transportation sectors, among others. Should the U.S. and other nations spark a build out, LYB could benefit handsomely.

DuPont (DD)

The logo for DuPont (DD).Source: ricochet64 / Shutterstock.com

One of the world’s premiere materials stocks, DuPont is synonymous with everyday products and innovations that we take for granted. From home goods to military applications, if you want maximum coverage in this sector with one name, DD stock would be it.

What’s particularly appealing about DuPont at this juncture is that it could be one of the most viable value plays among materials stocks. Similar to LYB and CE above, DuPont shares have printed some red ink recently. Over the trailing month, DD found itself staring at a 7% loss. And on a YTD basis, it’s down over 3%.

However, that could be due for a change because of our rapidly changing world. For instance, DuPont produces Nomex, a heat-and-flame resistant material that’s vital for protecting firefighters. As you know, climate change has contributed to record-breaking wildfires, which cynically drives demand for Nomex products.

As well, DuPont is famous for manufacturing Kevlar, which in addition to being vital for infrastructure is best known for undergirding military body armor. With our national security profile increasingly shaky, DD stock offers multi-tiered relevance.

Materials Stocks to Buy: Nucor (NUE)

Steel stocks: rods, bars and other forms of steelSource: Shutterstock

If you believe that President Biden can resolve conflicts brewing between high-profile Democrats and succeed in pushing through the infrastructure bill, Nucor will be one of the top materials stocks to consider. Billed as the “safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world,” Nucor has a track record that few can assail.

At the same time, it’s appropriate to consider the risks, which are rather sizable. Obviously, if Washington acrimony succeeds in scuttling the infrastructure bill, NUE stock will look far less attractive than it does now. In addition, the underlying company is exposed to global growth dynamics; hence NUE’s sharp loss on Sept. 20 following China Evergrande’s default worries.

As a result of the nearer-term threats, NUE has been discounted sharply in recent days. Over the trailing month, it’s down 15%. However, if the government approves some level of infrastructure spending, NUE could benefit.

Also, Nucor provides steel solutions for the automotive industry, which has been a disaster due to the semiconductor supply crisis. Nevertheless, once that problem fades away, Nucor could swing higher on a demand ramp up.

Southern Copper (SCCO)

Piece of copper set against black backgroundSource: Coldmoon Photoproject/Shutterstock.com

Back in May of this year, some commodity analysts suggested that investors take a contrarian view on the copper mining space, arguing that it was undervalued compared to the target commodity. Further, they anticipated higher prices in the fourth quarter of 2021, suggesting that key copper fundamentals — including dollar weakness and a post-Covid-19 recovery trek — should bode well for the industrial metal.

Despite some key changes to the global economic forecast since then till now, many factors remain positive for copper. By logical deduction, Southern Copper could be one of the top materials stocks to buy once we work out of the present funk.

Moving forward, should the Biden administration succeed in its infrastructural buildout initiatives, Southern Copper stands poised to deliver big contrarian gains as the underlying commodity is critical to electric vehicle production. If the White House is serious about getting the U.S. economy to hit net-zero emissions by 2050, EVs will play a critical role.

Further, copper being a highly efficient conductor of electricity is also crucial for renewable energy systems. Thus, SCCO is one of the must-watch names among materials stocks.

Materials Stocks to Buy: Olin Corporation (OLN)

Olin Corp (OLN) logo displayed on a mobile phone screen representing dividend stocksSource: IgorGolovniov / Shutterstock.com

As one of the global leaders in chemical production — particularly chlor alkali products and epoxy — Olin Corporation enjoys relevant demand sources from myriad industries. As such, OLN will be among the materials stocks to gain an advantage from the infrastructure bill should it pass.

However, I can understand that some people might not be interested in buying shares that have anything to do with Biden’s policies. Following the Afghanistan debacle, the president doesn’t exactly have the confidence of the nation. But if you do happen to have hard feelings about the current administration, then OLN stock could be a cathartic wager.

In addition to chemical products, Olin owns the Winchester brand of ammunition. Due to the record-breaking surge in firearms sales, ammo prices have likewise shot through the roof due to dwindling supplies. Moreover, the ridiculous prices continue to be a challenge for the outdoorsman types.

Some reports indicate that the ammo shortage could last between 12 to 24 months. Moreover, threats of gun control policies could spike up demand for firearms and related products. Thus, the Biden administration is a perfect catalyst for OLN stock.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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Precious Metals

U.S. Debt Default Planned in a Sneaky Way

Debt troubles in China and Washington, D.C. helped boost safe-haven demand for precious metals early this week. By Thursday, however, investors piled back…

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Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Debt troubles in China and Washington, D.C. helped boost safe-haven demand for precious metals early this week. By Thursday, however, investors piled back into stocks and sold safe-havens again.

As of this Friday recording, the gold price is essentially unchanged on the week to trade at $1,758 an ounce. The silver market shows a very slight weekly gain of 0.2% to bring spot prices to $22.53 per ounce.

Turning to platinum, the catalytic metal is on the move in early fall trading after underperforming all summer. Prices are up 3.8% this week to trade at $989 an ounce.

Platinum is making news for an unusual reason that has nothing to do with its primary demand sources in the automotive and jewelry industries. Instead, it has to do with the political fight over raising the debt ceiling.

Some Democrats are proposing that the Treasury Department issue a $1 trillion platinum coin as a way around the need to increase borrowing capacity.

Legal loopholes apparently allow for platinum coins in particular to be issued with any face value the Treasury Secretary sees fit to designate. The proposed trillion-dollar coins could then be deposited at the Federal Reserve, which would credit the government’s account with the cash it needs to pay its bills.

It may seem ridiculous, but the idea was taken seriously by economists who originally floated it to the Obama administration during debt ceiling standoffs in 2013.

Even though trillion-dollar platinum coins would put precious metals back into the monetary system, they would only be used as props to facilitate massive new currency printing by the Federal Reserve.

Of course, proponents of modern monetary theory believe that the government should just be able to print whatever currency it needs to pay its bills – sidestepping the need to borrow from the bond market or sell assets to the central bank. Of course, as it currently operates, the Federal Reserve System is nothing more than a charade for direct government money creation.

The Federal Reserve’s ongoing Quantitative Easing programs are a step toward total debt monetization. And now that the Fed is the largest single buyer of government bonds, it may never be able to extricate itself from that role without triggering a massive political backlash in Washington.

On Wednesday as Jerome Powell and company left interest rates unchanged, they suggested the central bank would likely begin tapering its bond purchases soon. They may well try to gradually wean the Treasury market from its dependence on the Fed, but they won’t necessarily get very far.

The supply of government debt will only grow bigger going forward. And since spending by elected officials is constrained neither by a gold standard nor by tax revenues, the only thing that ultimately backs Treasury bonds is the power of the printing press – and its electronic equivalent.

The ability of the Fed to create currency and purchase government debt in unlimited quantities virtually ensures that the United States won’t have to formally default on its bonds.

Most of the media’s coverage of the debt ceiling showdown in Washington completely ignores the longer-term risks of continuing the status quo of expanding the debt by trillions of dollars every year.

Among the biggest of these risks is an accelerating rise in inflation. Over time, even a modest rise in price levels will cause trillions of dollars in purchasing power losses to wage earners, savers, and retirees.

But over on CNBC, they are pushing catastrophe narratives about what will happen if the government can’t increase its credit limit.

CNBC Reporter: Goldman Sachs is calling the current debt limit showdown the riskiest in a decade. Analysts there project the Treasury Department would face a $500 billion shortfall for October and November if Congress does not raise the debt ceiling. Now, that would trigger a 40% cut in federal spending, potentially including interest payments, Social Security checks, and military pay.

Now, even just the delay in increasing the limit could be damaging as well. In the letter to Congress yesterday, six former Treasury Secretaries said, "Postponing action to raise the debt limit until too close to the deadline undermines confidence in our political system at home and abroad." Now, it is important to note that both Democrats and Republicans agree that default would be catastrophic and that the debt ceiling should be raised. What they're fighting over is who should actually do it.

The reality is that with Democrats controlling Congress and the Treasury Department, they could suspend the debt ceiling legislatively or work around it administratively at will. Senate Majority Leader Chuck Schumer could authorize the government to undertake additional borrowing through a procedural vote at any time.

The only reason he hasn’t is to make a political point. He wants bipartisan support for the Democrats’ spending agenda so that vulnerable incumbents on his side of the aisle look better in next year’s mid-term election.

And while Republicans are making a show of opposing the Democrats’ $3.5 trillion spending bill, the debt the government currently owes is a result of spending approved by both parties over the years.

Deficits are truly a bipartisan affair, and so is monetary policy. Since balanced budgets are out the window and no elected official would actually stand by and let the Treasury Department default if it came down to their vote, all political roads lead to inflation.

Investors would be wise to protect themselves from the risks of the government not defaulting on its bonds. Because if it doesn’t formally default all at once, then the Fed will likely have to default on the Federal Reserve Note’s value at an increasing pace.

Owning hard assets including gold, silver, and platinum will provide an important measure of protection against currency devaluation. And if inflation morphs into hyperinflation like it did in Zimbabwe and Venezuela, then you’re better off holding bullion coins at any face value instead of trillion-dollar paper.

Well, that will do it for this week. Be sure to check back next Friday for our next Weekly Market Wrap Podcast. Until then this has been Mike Gleason with Money Metals Exchange, thanks for listening and have a weekend everybody.

      
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