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3 ‘Must Watch’ Mining Stocks For Your Year End Watchlist

Will these mining stocks be on your watchlist? There have been a lot…

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This article was originally published by GoldStocks

Will these gold stocks enter your watchlist?

There have been a lot of gold stocks that have risen in value in 2021. The majority of this momentum can be attributed to increased material and metal prices. Gold stocks made news lately when the metal’s price stayed around $1780 per ounce. Nobody knew what would happen to mining stocks in the same timeframe at the start of last year. When March 2020 rolled around, all mining stocks fell along with the rest of the market. However, unlike other sectors, this one was able to immediately rebound in the market.

In 2021, the gold stock market fared quite well. The yellow metal gained value at the start of the year due to increasing gold prices and a positive outlook for the New Year. Since then, gold has retreated significantly. However, many analysts feel that the gold boom is not over. This is proving to be true as gold remains at a comparable price point at the present. Metal prices began to climb when global economies began to contract as a result of COVID. Over a year has now passed. What effect does this have on mining stocks now?

Copper, iron ore, gold, and silver have all been profitable mining areas in recent years. As a result, mining stockpiles relating to the aforementioned commodities have increased. It can be challenging to decide which mining stocks to buy. When investing in this area, recent news, filings, acquisitions, and volume can all be useful. With that in mind, let’s take a look at three gold stocks that could end up at the top of your list.

Top Mining Stocks To Watch

McEwen Mining Inc. (NYSE: MUX)

McEwen Mining Inc., the first gold penny stock, has had an intriguing 2021 so far. McEwen is a mineral exploration business that explores, manufactures, and distributes mineral resources. Silver, gold, and copper are examples of mineral resources. McEwen owns a 100% stake in the El Gallo project, the Fenix project, and the Black Fox mine, among others. These homes can be found in Mexico, Canada, Argentina, and the United States.

Certarus has agreed to provide a cleaner energy solution for mine air heating to McEwen Mining on November 24th. CNG is a high-performance, low-carbon fuel option that saves money and reduces emissions. The versatility of Certarus’ movable decompression and storage equipment not only helps to reduce the mine’s carbon footprint, but it also allows the CNG fueling system to be removed in the summer months when it is no longer necessary for mine air heating.

The Director of Operations at McEwen Mining Canada, Rory Greyvensteyn said, “At McEwen Mining, we are constantly looking for new ways to improve the environmental performance of our operations. With Certarus’ mobile CNG delivery, we have a better option to heat our mines, without having to install and store permanent fuel tanks. We can lower costs, simplify fuel logistics, and reduce our carbon footprint. That’s a big win for our business”. Noting this, will MUX be on your list of gold stocks to watch?

Denison Mines Corp. (NYSE: DNN)

Denison Mines Corp. is a gold stock that just increased 1.2% on December 8th. This is a uranium mining corporation based in Canada. Denison’s primary business is uranium exploration and development. The Wheeler River uranium project in northern Saskatchewan is the company’s flagship project.

On December 2nd, the corporation announced the adoption of an Indigenous Peoples Policy (IPP). This was approved by the Board of Directors, and it demonstrates the company’s recognition of the essential role of Canadian business in reconciling with Indigenous peoples in the country. This is consistent with Denison’s pledge to work toward reconciliation. This was essential for the corporation because it works in a number of places across Canada that are on traditional Indigenous peoples’ territory.

David Cates, the CEO and President of Denison said, “I believe Industry has an important role to play in acknowledging, and building awareness of, the history of Indigenous people in Canada and the critical importance of pursuing the objectives of reconciliation. As such, the adoption of an Indigenous Peoples Policy is a notable step in our Company’s journey to bring reconciliation to the forefront of what we do and how we do it.” Up in the last 6 months, will you consider DNN stock for your watchlist before 2022?

B2Gold Corp. (NYSE: BTG)

B2Gold Corp. is a gold mining penny stock that gained 1.84% on December 8th. This corporation mines gold at three active mines in the Philippines, Mali, and Namibia. The Fekola Mine, Masbate Mine, Otjikoto Mine, and other mines are all operated by the business. It also owns an 81 percent stake in the Kiaka Project in Burkina Faso. B2Gold also owns holdings in Uzbekistan, Finland, and other countries.

The company revealed its gold output and revenue for the third quarter and first nine months of 2021 on October 19th. The Fekola Mine and Otjikoto Mine both set quarterly gold output records, with 165,667 ounces and 68,959 ounces, respectively. Based on the results presented this quarter, Fekola and Masbate’s output guidance has been enhanced. Its total gold production for the first nine months of the year was 742,517 ounces, which was 7% more than the budget.

“The Company’s ongoing strategy is to continue to maximize profitable production from its mines, advance its pipeline of development and exploration projects, evaluate new exploration, development, and production opportunities, and continue to pay an industry leading dividend yield,” B2Gold Corp. stated. Will BTG stock be added to your watchlist this month as a result of this new information?

Top Gold Stocks To Watch

As the globe pushes for the reopening and eradication of the COVID-19 virus at a rapid pace, gold stocks will change dramatically in the near future. The issue is that no one knows what will happen in the following months. That is why, if you are wanting to invest, it is critical to be informed about what is going on in the market. So, which firms will you be keeping an eye on this month in terms of gold stocks?

The post 3 ‘Must Watch’ Gold Stocks For Your Year End Watchlist appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

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Author: Jon Phillip

Precious Metals

Alamos Gold: Haywood Lowers Target To $12.75 Following 2022 Guidance

Last week, Alamos Gold Inc. (TSX: AGI) reported its fourth quarter and full-year production results, as well as their 2022
The post Alamos Gold: Haywood…

Last week, Alamos Gold Inc. (TSX: AGI) reported its fourth quarter and full-year production results, as well as their 2022 to 2024 production estimates.

For the fourth quarter, Alamos Gold produced 112,500 ounces of gold, bringing the full year 2021 production to 457,200 ounces, which was the lower range of guidance. Costs have not yet been finalized but the company says that it is expected to be consistent with their guidance.

The company also provided 2022 guidance, which included expected gold production of 440,000 to 480,000 ounces. Cash costs are expected to be between $875 to $925 per ounce and all-in sustaining costs are to be between $1,190 to $1,240 per ounce. Total capital expenditures will be between $305 and $345 million, while exploration is expected to cost $27 million for 2022.

For the longer run, the company expects these numbers to grow to 460,000 to 500,000 ounces of gold in 2024, with cash costs of $650 to $750 per ounce and $950 to $1,050 of all-in sustaining costs per ounce.

Currently Alamos Gold currently has 13 analysts covering the stock with an average 12-month price target of C$12.46, or a 36% upside to the current stock price. Out of the 13 analysts, 1 has a strong buy rating, 6 have buy ratings, 5 have holds and 1 analyst has a sell rating. The street high sits at C$17.50 or a 91% upside to the current stock. While the lowest price target sits at C$9.98.

In Haywood Capital Markets’ note, they reiterate their buy rating but lower their 12-month price target from C$15 to C$12.75, saying, “lower production and higher costs for 2022,” and that inflation is finally starting to impact the production costs.

For the fourth quarter and full-year production numbers, they came in line with Haywood’s estimates although they note that the full-year production numbers came in the lower half of guidance.

For the companies three-year guidance, Haywood expected 2022 production to be 485,000 ounces, below their high-end figure. While cash costs were expected to be $785 per ounce, lower than their guided number. This is the same for all-in sustaining costs as Haywood expected it to be $1,055 per ounce. Haywood says that this cost increase in 2022, “is due to industry-wide cost inflation as well as temporary higher costs at Mulatos.”

Below you can see Haywood’s estimates versus the company’s guidance.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Alamos Gold: Haywood Lowers Target To $12.75 Following 2022 Guidance appeared first on the deep dive.



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Author: Justin Young

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Economics

S&P Suffers Worst Start To A Year Since 1939 As Yield Curve Yells ‘Recession’

S&P Suffers Worst Start To A Year Since 1939 As Yield Curve Yells ‘Recession’

Before we start, let’s make this clear right from the start…

S&P Suffers Worst Start To A Year Since 1939 As Yield Curve Yells ‘Recession’

Before we start, let’s make this clear right from the start – despite today’s panic-buying, this is the worst start to a year for the S&P 500 since 1939 (and on course for its worst January ever)…

Nasdaq is down 5 straight weeks (16% from its highs) – the longest losing streak since 2012 – while Small Caps are down 22% from their highs (in a bear market)

Source: Bloomberg

Everything was going so well too… “smooth sailing” they said! “Fed Put” they said! “Transitory inflation” they said…

Today was just a little bit turbo as it seems ugly sentiment data (10 year lows) and plunging growth expectations (Q1 GDP forecasts collapsed), was the ‘bad news’ the dip-buyers needed to reassure themselves that uber-hawkish Powell wouldn’t execte on his plan to crush inflation into a recessionary environment. We have one word for them – stagflation, and it leave Powell in an ugly box.

Atlanta Fed GDP expectations crashed to zero for Q1…

Source: Bloomberg

And as that happened, rate-hike expectations shifted dovishly lower (modestly at the time)…

Source: Bloomberg

Which helped send stocks soaring (particularly hyper-growth, long duration stocks). But that all came to an abrupt end at 1400ET today (for no obvious reason)… which was immediately met with a wall of dip-buyers amid the total lack of liquidity. Then all the majors just went vertical into the last 10 minutes as a significant buy-imbalance appeared (all helped by AAPL’s explosive gains today). Nasdaq was up a shocking 3% today (from down 1% pre-open). The S&P was up 2.5% today (from down 1% pre-open). Russell 2000 closed up almost 2% today from down 2% pre-open…

As one veteran trader noted, “today was a shitshow, no liquidity, gamma-driven gappy jumps everywhere… it was all algos and no average joes.”

Well that idiotic rampage managed to get the Dow, S&P, and Nasdaq unchanged on the week (which appears to be all that mattered to the machines)…

Just look at the volatility (but Monday’s puke lows held… and so did Wednesday’s pre-Fed highs).

Growth stocks were flat on the week as Value was bid (mostly benefitting on Thursday)…

Source: Bloomberg

Both Defensive and Cyclical stocks were hammered equally this week (while obviously cyclicals were more volatile)…

Source: Bloomberg

Today’s bounce was not really triggered by a short-squeeze as the size of the swing higher is very modest and unsustained…

Source: Bloomberg

The energy sector is the only one up in January while Tech and Consumer Discretionary are down hard MTD…

Source: Bloomberg

Real yields continue to rise (to their highest since June 2020 – but still negative), and have recoupled with gold…

Source: Bloomberg

…but have completely decoupled from stocks (Nasdaq should be significantly lower relative to Russell 2000)…

Source: Bloomberg

Notably, if real yields keep rising, then valuations are going to come under significant pressure…

Credit markets saw very little of the chaotic chop in stocks this week as they just fell with HYG (HY Corporate Bond ETF) at its lowest since Nov 2020…

Source: Bloomberg

Treasury yields were extremely mixed on the week with the short-end exploding higher and long-end actually coming all the way back to unchanged…

Source: Bloomberg

This week saw 2Y yields jump most since Oct 2019 (up for the 6th week in a row to the highest since Feb 2020).

Source: Bloomberg

The yield curve was crushed this week, triggered by The Fed’s hawkish tilt…

Source: Bloomberg

…with 7s10s at almost record flats, 20s30s still inverted, and 2s30s at its flattest since March 2020… all screaming The Fed is about to make a big mistake and hinting strongly at recessionary risks rising fast…

Source: Bloomberg

Short-term markets are now fully pricing in 5 rate-hikes by year-end (and a 25% chance of 50bps hike in March)

Source: Bloomberg

Perhaps even more notably, the forward OIS market is pricing in rate-cuts between 2024 and 2025…

Source: Bloomberg

The dollar soared higher for the 5th straight week (best week since June 2021), closing at its highest since July 2020. NOTE, the dollar took out the December USD spike highs and faded…

Source: Bloomberg

Cryptos had a nasty drop on Monday, along with stocks, and another puke after The Fed, but bitcoin ended the week modestly higher, while Ether was down around 5%…

Source: Bloomberg

Commodities were very mixed this week with most lower by hawkish tilts (Silver slammed 8% on the week) while crude rallied on geopolitical tensions…

Source: Bloomberg

Silver dropped back below $23…

WTI came very close to $89 intraday during the week, its highest since Oct 2014 (up for the 6th straight week in a row)…

NatGas went supersonic this week amid chaotic settlement and a new cold front, breaking above the early Jan highs (and up 19%, its best week since Aug 2020)…

Finally, just in case you think the market can handle all this vol, think again – liquidity in the most-liquid global equity futures contract (ES) is at its lowest since the COVID crash in 2020…

Simply put, a moderate-sized order moves ES 10 ticks so how do you think it’s going to handle all the fintwit/tiktokkers “paper hands” puking out of their Robinhood accounts?

The good news is that US COVID cases are following the same trajectories at UK and South Africa and tumbling…

Source: Bloomberg

Nevertheless, as we noted above, GDP in Q1 could well print contractionary.

Tyler Durden
Fri, 01/28/2022 – 16:02









Author: Tyler Durden

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Precious Metals

Gold Continues Descent Following Powell’s Hawkish Stance

Gold prices continued their downward slide on Thursday, after plummeting by the most in over two months following the Fed’s
The post Gold Continues Descent…

Gold prices continued their downward slide on Thursday, after plummeting by the most in over two months following the Fed’s hawkish comments on taming inflation.

Spot gold fell below $1,800 per ounce at the time of writing, continuing its sharp descent from Wednesday’s FOMC meeting, which heeded an unexpectedly more aggressive stance on raising borrowing costs. A rebound in the US dollar was largely responsible for the market’s pressure on the bullion, after Fed Chair Jerome Powell announced the possibility of raising rates at each consecutive meeting starting in March.

The latest slump in gold prices wiped out all gains accumulated since the beginning of the year, many of which were initially driven by the market’s anticipation of price pressures surpassing bond yields, even amid a rate-tightening environment. However, Powell’s latest hawkish comments decimated such expectations, with the 10-year bond yield soaring to the highest in nearly 19 months on Wednesday.

This prompted Goldman Sachs to revisit its 12-month gold price forecasts, upgrading the bullion’s price from $2,000 to $2,150 per ounce following Powell’s speech.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Gold Continues Descent Following Powell’s Hawkish Stance appeared first on the deep dive.





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