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3 Hot Gold Stocks To Watch In August

Are these the top gold stocks to watch before this month ends?…
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Are these the top gold stocks to watch before this month ends?

When it comes to 2021, gold stocks have underperformed, to say the least. Regardless, the metal has remained an attractive investment to many. As you may know from last year, COVID-19 caused gold prices to skyrocket. In turn, gold stocks also went up a lot in value. This had to do with the economy crashing, and with that, more government stimulus was issued.

For a while, things seemed grim for gold stocks as COVID-19 cases started dropping at a fast rate due to vaccinations. But now, COVID-19 case counts are increasing once again because of the Delta variant of the virus. With increased cases, the chance of more stimulus being issued is very high.

Still, many gold stocks have gone down this year despite reporting positive earnings. This means that the most expensive gold stocks are lower than they have been in a while. These prices can be attractive to investors who like to buy the dip. If COVID-19 cases continue rising in the United States, it could potentially cause the stock market to crash once again. But the truth is, nobody knows what direction gold stocks truly could be headed in at the moment. While gold’s price is not near its low right now, it is also not near its recent high either. Keeping all of this in mind, let’s look at some gold stocks that may make your watchlist before August 2021 ends.

Top Gold Stocks To Watch

  1. Barrick Gold Corporation (NYSE: GOLD)
  2. Coeur Mining Inc. (NYSE: CDE)
  3. Golden Star Resources Ltd. (NYSE: GSS)

Barrick Gold Corporation (NYSE: GOLD)

When it comes to the biggest gold stocks, Barrick Gold Corporation is among the top. In fact, Barrick is currently the second biggest gold mining corporation on the planet. It currently operates mines in 12 different countries. This company engages in exploration, mine development, production, and sale of its materials. In addition to gold, the company also mines for copper.

On August 13th, the company announced that it has joined a challenge to decarbonize surface mining. This challenge is called the Charge on Innovation Challenge, which aims to cut emissions from surface mining. So far, more than 350 companies from 19 industries have registered their interest as vendors for the challenge.

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The President and CEO Mark Bristow said, “At Barrick, we have set ourselves an emissions reduction target of 30% by 2030 against our 2018 baseline and our vision is to achieve net-zero emissions by 2050. While we have already made clear strides in meeting these targets, we are constantly looking at new and innovative ways to further enhance our environmental credentials.” On August 20th, GOLD stock increased by 0.52% in the market. With this new information in mind, will Barrick GOLD stock make your watchlist?

Coeur Mining Inc. (NYSE: CDE)

Coeur Mining Inc. is a gold stock that just went up 0.16% in the market. This is a mining stock that explores for, develops, and produces gold, silver, zinc, and lead. Its properties are located in Nevada, Alaska, Mexico, Canada, and South Dakota. It holds more than 200,000 net acres of land in total.

At the end of July, the company reported its second-quarter results for 2021. The company’s revenue increased 6% quarter over quarter during this period. In addition to this, its quarterly revenue went up by an impressive 39% year over year. This occurred because of higher gold and silver ounces sold, and a higher average realized silver price. The company also reported higher quarterly production and expects more in the second half of the year.

President and CEO Mitchell J. Krebs said, “We anticipate production to continue increasing during the second half of 2021, particularly from our Wharf and Rochester operations, and expect to achieve our full-year production guidance for both gold and silver. We also accelerated investment on the POA 11 expansion project at Rochester during the quarter.” Noting this new information from Coeur Mining, will you add CDE to your list of gold stocks to watch?

Golden Star Resources Ltd. (NYSE: GSS)

Golden Star Resources Ltd. is a gold mining and exploration corporation located in Canada. The company operates and owns the Wassa open-pit gold mine located in Tarkwa, Ghana. It correspondingly owns processing plants and underground mines too. These mines include the formerly Bogoso gold mining and processing operation in Prestea, Ghana.

[Read More] Will These Silver Stocks Go Up In August? 3 To Watch

At the end of July, the company reported its results for the three and six months ended June 30th, 2021. The company announced that it remains on track to deliver on its recently revised production guidance for the year.

CEO Andrew Wray said, “Our primary objectives for H1 2021 were to continue positioning the business for future production growth, as well as to be able to address the repayment of the $51.5m Convertible Debentures in August 2021. With the increase in the cash position to $72.7m during the quarter and the successful refinancing of the Macquarie Credit Facility, we now have adequate liquidity to be able to cash settle the Convertible Debentures on maturity.” With this in mind, will GSS make your gold stock watchlist?

Gold Stocks in August 2021

It can be difficult to decide which gold stocks may be the best for you with so much to consider. That is why it is important to conduct proper research in companies before making an investment. The market for gold stocks is rather volatile at the moment, which complicates this choice. But staying up to date on the latest sector news, world news, and company news can be very useful in the process. So which gold stocks will make your watchlist this month?

The post 3 Hot Gold Stocks To Watch In August appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

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Monsters of Rock: IG’s top two miners to watch this week

Whitehaven Coal (ASX:WHC) and Northern Star Resources (ASX:NST) are two large cap miners worth keeping an eye on in the … Read More
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Whitehaven Coal (ASX:WHC) and Northern Star Resources (ASX:NST) are two large cap miners worth keeping an eye on in the week ahead, according to trading platform IG Markets.

Despite general concerns about global growth and subsequent drop in global bond yields, gold prices fell throughout last week.

The drop in the value of the yellow metal weighed on Aussie gold miners like Northern Star.

Northern Star’s share prices fell to two-year lows as investors reduced exposure to gold-mining stocks, to close below what was price support at roughly $8.80 per share.

“The technicals look quite poor for the stock now, with the trend and price momentum skewed to the downside,” IG analyst Kyle Rodda says.

“The next major level of long-term price support looks to currently sit at around $7.65 per share.”

The stock was down another 1.15% in Monday trade.

 

At the other end of the spectrum was Whitehaven Coal, which surged last week.

Global coal prices jumped to a record high as energy demands spikes on what is an unfolding and worsening energy shortage globally.

“Whitehaven shares look to be forming a primary uptrend now, with the weekly RSI showing a stock that is technically overbought, but that that is not signalling yet a meaningful slowdown in momentum,” Rodda says.

“WHC shares probably remain highly tied to the budding energy crisis now and any further upside in coal prices, and in the short-term, risk-reward appears skewed to the downside given the stock’s overbought technicals.

“A re-test of previous price resistance now support at around $2.50 may indicate whether the stock’s longer term uptrend remains in play.”

WHC was down 2.5% in late arvo trade.


 

Iron ore miners up as Materials ekes out small gain

Pic: CommSec

The ASX 200 Materials index was up ~0.15% at close of play Monday, dragged higher by the major iron ore miners BHP (ASX:BHP), Rio Tinto (ASX:RIO), FMG (ASX:FMG) and Mineral Resources (ASX:MIN).

The benchmark iron ore price – down 30% year-to-date – has staged a small comeback to ~$US110/t since going into the low 90’s on September 21.

In the mid cap space, +$1bn market cap lithium hopeful AVZ Minerals (ASX:AVZ) led the winners after securing a “cornerstone investor” for its Manono development in the DRC.

Private Chinese company CATH will pay US$240 million cash for an initial 24% equity stake in the project.

“Proceeds from the transaction will fund a majority of the total project financing required, whilst AVZ will retain a controlling 51% interest in the Manono Project post-completion of the transaction and its position as lead developer of the Manono Project,” the company says.

The post Monsters of Rock: IG’s top two miners to watch this week appeared first on Stockhead.

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Base Metals

This ASX-listed iron ore developer is well placed to benefit from the shift to high grade ore

Special Report: All eyes have been on the price of iron ore in recent days as volatility in the iron … Read More
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All eyes have been on the price of iron ore in recent days as volatility in the iron ore price has had a big impact on markets.

But while that is where the focus is in the here and now, there remains a story bubbling under the surface about where iron ore is headed in the future.

Increasingly, iron ore experts believe grade will be an important factor for steel mills, as efforts to curb emissions and pollution from steelmaking take centre stage.

Take this comment for instance from Fastmarkets index manager Peter Hannah, who observes iron ore markets for one of the two major price-reporting agencies.

“To succeed in decarbonizing the global steelmaking industry there needs to be a greater recognition of how much the iron ore supply base needs to change,” he wrote recently.

“Vast volumes of existing production will need to be replaced by higher-grade supply, first to meaningfully reduce CO2 emissions from the prevailing BF/BOF (blast furnace) technology, and later to meet the demands of a DRI (direct reduced iron) sector at least an order of magnitude larger than it is today.”

The gap for discounts and premiums in iron ore have soared in recent years. Pic: Supplied

 

As Magnetite Mines (ASX:MGT) showed in a presentation released on Friday, it is one of a handful of iron ore hopefuls able to capitalise on this growing thematic.

Its Razorback mine in South Australia is now in the Definitive Feasibility Study stage leading to decision to mine, planning to start operations around the end of 2024. It would produce a 68% iron magnetite concentrate.

That is well above any commonly quoted indices like the 65% Brazilian index, which already generates an substantial premium compared to the commonly quoted benchmark 62% fines price.

While the 62% iron ore index – used by most of the Pilbara iron ore miners such as BHP –  was fetching US$108.67/t on Friday morning, 65% iron ore demanded US$134.60/t.

In the long run over the past decade the gap between discounted 58% iron ore, 62% product and premium product has trended wider and wider.

“Steelmakers need to adopt best practices that prioritise decarbonisation with existing assets. Some of these best practices include installation of energy efficient technology, optimisation of the blast furnace (BF) burden (e.g. with high- grade ore),” CRU Group says.

 

Razorback a logistical dream

While grade is one aspect of Razorback’s allure, it is not the only reason Magnetite Mines has been so keen to push ahead with a definitive feasibility study after releasing a successful PFS in July.

The mine, which has a resource of 4.2Bt of iron ore, stands to be a logistical dream. Located just 240km northeast of Adelaide, it has access to rail and high voltage powerlines that connect it to the Australian electricity grid.

That is significant from an ESG perspective as well because of South Australia’s high penetration of wind power and other renewables, which met around 60% of the State’s electricity needs last year.

Being in the vicinity of the town of Yunta, Razorback will have a 50km purpose built private all weather haul road and rail siding with access to an existing heavy freight network and iron ore port at Whyalla.

From a mining perspective it is also technically simple. Ore can be mined from surface, saving costs on pre-stripping with a low PFS strip ratio of 0.16:1 and the potential to improve grades with selective mining and or ore sorting.

Razorback is close to key infrastructure like power, rail and ports. Pic: Magnetite Mines

 

Low cash costs underpin long-life operation

Once built, the project is highly competitive.  As reported in Magnetite’s pre-feasibility study in July, the project is expected to generate cash when the 62% iron ore price is above  US$54/t (including the appropriate quality adjustment).  That would still be half the iron ore price on Friday, after the contraction seen in the benchmark 62% fines price in recent weeks.

At US$110/t, around the long-term average iron ore price over the past 10 years, Razorback would carry a post-tax NPV of $700 million and IRR of 20%, generating around $144 million a year in net cash flow after taxes and royalties.

At a production rate of 2.7Mtpa, the project would pay back its estimated $675m capex in 4.6 years, leaving two decades of reserves still to go.

If we were to see another bull run to US$150/t – and remember, at a 68% grade, Razorback’s concentrate would earn a premium on that – that would increase to an NPV of $1.67 billion, with an IRR of 33% and average net cashflow of $241m, something that would see Magnetite pay back its initial investment in just over 2 years.

Key results from the Razorback PFS. Pic: Magnetite Mines

 

DFS activities under way with appointment

Magnetite Mines this week appointed engineering and professional services company GHD to deliver its critical power supply and non-process infrastructure elements of the Razorback DFS, effectively kickstarting the process.

It will build on the power supply option selected from the DFS of installing a 132KV transmission line connecting to the national grid at Robertstown.

“GHD’s appointment is an important milestone for Magnetite Mines as it represents the commencement of the DFS and continues our commitment to delivering a well planned and high quality study for our shareholders,” Magnetite Mines executive chairman Peter Schubert said last week.

The DFS well underway and currently expected to be completed next year, with a decision to mine looking to be at the end of next year.  Project financing and permitting will take place in parallel.  The current schedule sees Razorback in production around the end of 2024, well placed to benefit from a stronger ESG focus in the mining and steel industries.

On the approval side of the ledger, work is well underway. South Australia is a predictable, stable and low risk mining jurisdiction and there is regular consultation between Magnetite and the State Government.

Baseline environmental studies are also well progressed, while the important consultation process with the people of the Ngadjuri Nation, the region’s traditional owners has started, reflecting the company’s acknowledgement of and respect for the traditional owners of the country.

Magnetite Mines is on track with its proposed development timeline. Pic: Magnetite Mines

 

Braemar district fertile for further development

While Magnetite has unlocked an impressive 5.7bt of resources across its Razorback (4.2Bt) and Muster Dam (1.5Bt) projects, that does not tell the full story of just how fertile the Braemar region is for iron ore discoveries and developments.

Of that bounty just 473Mt is included in the Razorback PFS reserve.

That factors in just 8% of Magnetite’s resource, 4% of the Braemar region’s kilometres long strike length and 0.3% of Magnetite’s tenured area.

That suggests Magnetite should have room to grow and expand beyond its initial 25-year project should the numbers stack up.

Its long life and plentiful resource and reserve base should be attractive to lenders, with Magnetite targeting early engagement to allow a collaborative approach to risk mitigation and achieve financial close by the fourth quarter of 2022.

Debt funding is likely to be complemented by a conventional equity raising or other options for equity funding.

Magnetite has $15.3m in the bank to progress its all important DFS, and a market cap of $69m as of September 21.

MGT stock is around 170% up over the past 12 months despite a dip after PFS release, but it has caught some tailwinds in recent days as investors responded well to news about its DFS preparations, rising by almost 29% from 2.1c a share to 2.7c a share over its past three trading days.

This article was developed in collaboration with Magnetite Mines, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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ASX Small Cap Lunch Wrap: Who’s outperforming Warren Buffett today?

A hamster in the US has a portfolio up by around 20% since June, outpacing the S&P500 and Warren Buffett’s … Read More
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Ever wished you were as rich as Warren Buffett?

Or perhaps more accurately; sometimes feel like you’re just a hamster running on a wheel?

Some enterprising crypto investors have made that idea work for them, with a unique hamster-based investment strategy.

According to reports, the hamster — Mr Goxx — dutifully runs on his wheel and in doing so, also selects from a range of different cryptocurrencies.

The wheel is uniquely designed for Mr Goxx to choose one of two tunnels, which indicate buy or sell.

And apparently his portfolio is up by around 20% since June, outpacing the S&P500 and Warren Buffett’s Berkshire Hathaway.

So if your fundamental analysis of ASX small caps isn’t bringing returns, there are options…

Elsewhere, the idyllic, resource-rich locale of Perth, Western Australia, has been run over by some rampant demons following Melbourne’s AFL Grand Final victory on Saturday night.

208cm ruckman Max Gawn stayed in game-shape following the financial siren, taking hangers while still dressed in his match guernsey:

On markets, ASX futures markets suggested the local index was going to edge higher (maybe) before the opening bell, but local stocks have beaten expectations as upbeat sentiment permeates through Monday trade.

Just after 12pm EST the ASX 200 was on track for a gain of around 1%, with steady demand across all the major sectors.

Energy stocks kept the ball rolling after last week’s big rally, and the ASX 200 Energy index has now climbed by an impressive 10.6% since last Monday’s selloff.

Brent crude oil is trading at three-year highs above US$78 a barrel, as consensus around a global energy supply crunch continues to build.

Along with the ASX, positive sentiment extended across Asian markets with steady gains across the other major indexes including the Hang Seng (home of Evergrande) which rose by more than 1%.
 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
NTL New Talisman Gold 0.002 100.0% 1,184,051 $2,792,225
ANL Amani Gold Ltd 0.0015 50.0% 3,911,521 $14,205,197
RRR Revolverresources 0.43 38.7% 2,941,576 $25,380,460
RBX Resource B 0.28 36.6% 5,717,568 $6,959,255
DDD 3D Resources Limited 0.004 33.3% 125,305 $11,641,116
OAK Oakridge 0.002 33.3% 1,080,116 $5,158,939
ARR American Rare Earths 0.22 22.2% 4,175,115 $62,065,499
ARU Arafura Resource Ltd 0.235 20.5% 21,478,573 $302,239,730
AO1 Assetowl Limited 0.006 20.0% 155,000 $4,081,026
RBR RBR Group Ltd 0.006 20.0% 1,030,125 $6,409,900
AJL AJ Lucas Group 0.038 18.8% 966,220 $38,281,172
POW Protean Energy Ltd 0.013 18.2% 1,476,795 $7,156,743
IMC Immuron Limited 0.165 17.9% 937,744 $31,814,523
IXC Invex Therapeutics 0.8 17.6% 237,582 $51,104,617
LEL Lithenergy 0.695 16.8% 3,327,351 $26,775,000
GGX Gas2Grid Limited 0.0035 16.7% 2,054,000 $12,138,306
PEB Pacific Edge 1.52 16.0% 139,756 $955,265,080
POL Polymetals Resources 0.145 16.0% 31,562 $4,852,907
TBA Tombola Gold Ltd 0.044 15.8% 1,546,928 $24,103,240
OZM Ozaurum Resources 0.15 15.4% 292,127 $7,438,080
HWK Hawkstone Mng Ltd 0.046 15.0% 22,265,624 $68,793,777
BMR Ballymore Resources 0.25 14.0% 20,000 $15,725,178
AVL Aust Vanadium Ltd 0.025 14.0% 5,913,983 $72,178,161

 

Recent ASX debutante Resource Base (ASX:RBX) is getting into the rare earths game, where a number of other ASX juniors are running hot.

The company announced that its snapped up 1,380sqkm of ground in the Murray Basin, which is prospective for ionic clay hosted Rare Earth Elements (REE).

Elsewhere among stocks with news, biopharmaceutical company Invex Therapeutics (ASX:IXC) jumped by around 20% after announcing a long-term Collaboration and Manufacturing Agreement with Peptron Inc — a company listed on the Korean Stock Exchange.

The deal will see Peptron use Presendin — IXC’s treatment for neurological conditions relating to raised intracranial pressure — in clinical trials and for commercial use, once Presendin is approved.

The agreement is “exclusive, applies globally and provides a defined price per dose for the supply of Presendin for clinical studies, and for the first ten years following the first commercial sale,” IXC said.

Get the wrap of the rest of today’s resources winners here.
 

ASX SMALL CAP LOSERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
AJY Asaplus Resources 0.04 -33.3% 20,000 $8,160,000
ACB A-Cap Energy Ltd 0.085 -26.1% 2,448,518 $100,266,760
NPM Newpeak Metals 0.0015 -25.0% 992,527 $13,654,870
BDC Bardoc Gold Ltd 0.045 -21.1% 28,783,076 $98,909,670
EN1 Engage:Bdr Limited 0.004 -20.0% 1,999,249 $12,764,763
YPB YPB Group Ltd 0.002 -20.0% 100,000 $12,479,551
AEE Aura Energy 0.21 -17.6% 2,317,954 $101,784,941
SCN Scorpion Minerals 0.052 -14.8% 108,000 $15,800,903
CUL Cullen Resources 0.018 -14.3% 1,368,921 $7,852,271
EVE EVE Investments Ltd 0.0035 -12.5% 2,082,615 $15,372,568
TOE Toro Energy Limited 0.029 -12.1% 37,032,041 $128,612,292
OZZ OZZ Resources 0.19 -11.6% 212,469 $5,795,674
WFL Wellfully Limited 0.155 -11.4% 915,577 $36,718,582
VMY Vimy Resources Ltd 0.1775 -11.3% 4,532,779 $210,299,732
EL8 Elevate Uranium Ltd 0.56 -11.1% 777,573 $143,780,897
RD1 Registry Direct 0.033 -10.8% 184,545 $13,037,813
AGE Alligator Energy 0.068 -10.5% 42,201,863 $212,357,592
LME Limeade Inc. 0.71 -10.1% 17,193 $197,294,227
AGR Aguia Res Ltd 0.046 -9.8% 98,089 $17,031,064
PEN Peninsula Energy Ltd 0.23 -10.0% 6,774,820 $253,984,637
BBX BBX Minerals Ltd 0.19 -10.0% 365,091 $96,184,510
AMO Ambertech Limited 0.29 -9.0% 208,389 $24,622,932
COD Coda Minerals Ltd 0.79 -9.0% 69,456 $79,566,922

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