Are You Looking At Mining Stocks Right Now?
The S&P has begun zeroing back in on historic levels and penny stocks have grown even more popular in that light. Times where we see the stock market push higher, traders tend to look for more risk. Obviously, one of the highest risk asset classes in the stock market today is the penny stock class.
These nano-, micro-, and small-cap stocks are well-known for highly-volatile, highly-profitable trades. They’re also well-known for their huge loss-producing drops as well. One piece of bad news can result in a huge sell-off in these cheap stocks. Even the slightest drop in price can equate to significant percent-changes.
[Read More] What Are The Best Penny Stocks To Buy Now? 4 To Watch This Week
But if you can handle the risk, then penny stocks are for you. The main goal is to make money and leverage smaller sums of money. Where it might take years for that $120 Apple position to return a $120 gain per share, buying $120 worth of a 10 cent penny stock could see that type of return within a day or week. Remember, the shifts in price can work for or against you.
So if you’re trading penny stocks, keep your “max pain” levels in mind. These are the “must sell” levels that you set for yourself when entering a trade. You should also set profit targets too. A sound and well-rounded strategy is key to becoming consistently profitable as a trader.
Where Are Penny Stock Traders Looking Right Now?
Something to consider right now are broader sector events. What’s happening in the stock market today that could pave the way for new trends to emerge? In light of this, we’re seeing a bit more market uncertainty surrounding stimulus discussions.
We’ve also got to consider the upcoming Presidential election could become a point of contention for many who are speculating on the outcome. Needless to one of the industries that tend to react well to market uncertainty is the mining sector. This includes things like precious metals and even industrial metals.
Top Mining Penny Stocks To Watch For October 2020
- Walcott Resources Ltd (WALRF Stock Report)
- Maple Gold Mines Ltd. (MGMLF Stock Report)
- Iamgold Corporation (IAG Stock Report)
- Northern Dynasty Minerals Ltd. (NAK Stock Report)
Furthermore, if you look at the price of gold and its trend, you’ll see the precious metal has steadily climbed in price over the last few weeks. This is also the case when it comes to silver prices too. With this in mind, here’s a quick list of mining penny stocks to watch heading into the second half of October.
Mining Penny Stocks To Watch #1: Walcott Resources Ltd.
Walcott Resources Ltd. (OTC: WALRF) (CSE: WAL) has been an actively traded silver stock to watch on the Canadian exchange. However, more recently, Walcott has begun to see some action in the U.S. as well. One of the reasons to watch silver stocks right now has a lot to do with how it plays against gold prices.
“Silver is often called the ‘poor man’s gold’ because some of the same factors that cause gold prices to rise do the same thing to silver prices,” says Ed Moy, chief market strategist at gold retailer Valaurum.
In Walcott’s case, the company is taking Australia head-on with a specific focus on a primary silver asset in New South Whales – the Tyr Project. High-grade zinc-lead-tin mineralization has already been identified. Walcott plans to re-open two historic silver mines with conservative inferred resource estimates and many high-grade surface mineral occurrences up to 4,710 grams per ton of silver (g/t Ag).
Tyr is located in the New England Orogen, a significant mineral province and home to a variety of mineral deposits. Furthermore, extensive zinc occurrences near New Century Resources’ Century Mine could also present an opportunity for Walcott, specifically. These occurrences are adjacent to the Century South tenure. Get More Information On Walcott Resources.
Mining Penny Stocks To Watch #2: Maple Gold Mines Ltd.
Maple Gold Mines Ltd. (OTC: MGMLF) (TSXV: MGM) is one of the gold penny stocks experiencing a strong move in the stock market this year. In fact, within the last few weeks alone, MGMLF stock managed to climbed from around $0.1051 to highs this week of $0.20. The company has focused on its Douay Gold Project in northern Quebec.
In a corporate update last month, Matthew Hornor, President and Chief Executive Office explained several initiatives that Maple Gold is undertaking.
“Maple Gold has a massive 357-square-kilometer land package with the opportunity to establish a district-scale gold project in the heart of the Abitibi Gold Belt. With our recently closed C$4.75 million financing, we are fully funded to execute on our exploration plans with the aim of completing an updated resource estimate in 2021.”
The big news recently comes from an investment that Maple just obtained from Agnico Eagle Mines (AEM Stock Report). There’s also a planned creation of a joint venture to combine two adjacent projects into one property package in the Abitibi region of Quebec. Agnico would fund C$18M in exploration expenses over a 4-year period.
The two companies would also jointly fund another C$500k in the exploration of targets on the western portion of the Douay project. They would each be granted a 2% net smelter royalty, each with aggregate buyback provisions of $40M. Get More Information On Maple Gold.
Mining Penny Stocks To Watch #3: Iamgold Corporation
We discussed Iamgold Corporation (NYSE: IAG) this weekend. Something focused on were recent company catalysts. Last week, Iamgold reported that all of its outstanding 7.000% Senior Notes due 2025 were redeemed. Carol Banducci, Executive Vice President and CFO, said, “By extending the debt maturity to 2028, the Company has significantly enhanced its flexibility during the construction build phase of the Côté Gold Project, as well as its ability to fund its pipeline of internal growth opportunities.”
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In addition to this fundamental change, Iamgold has made some strategic moves as well. About a month ago the company signed an asset purchase agreement for the purchase of Tomgold’s 25% interest in the Monster Lake project. Iamgold holds a 75% stake in the project, which includes Winchester and Lac a l’eau jaune properties located in the Chibougamau mining camp in Quebec, according to a statement.
In light of the recent trend that we’ve seen in gold, it’s no wonder we’re seeing gold stocks rise. Since last Friday’s closing bell, IAG stock managed to climb roughly 4.6% on Monday. This further extended a 3-day uptrend that began last Thursday. Get More Information On Iamgold.
Mining Penny Stocks To Watch #4: Northern Dynasty Minerals Ltd.
Northern Dynasty Minerals Ltd. (NYSEAMERICAN: NAK) is one of the mining penny stocks we’ve discussed for a while now. The company was caught in the middle of a bit of controversy this year. This wasn’t just from a standpoint of environmental concerns in Alaska. It was also about certain actions undertaken by the now former management.
The company was heavily scrutinized for potential environmental implications that could be present with this project. There were also instances that Northern Dynasty’s CEO conducted business in a less than savory fashion. He’s since resigned from the company.
Fast-forward to this month and NAK stock is back on a steady incline. Earlier this month the company issued its technical report for the Pebble Project. Based on the findings, after Pebble, the most significant deposits of Rhenium in the world exist at copper porphyry mines in Chile.
The attention being placed on rare earth mining companies has picked up recently. This came after an executive order from the White House was signed. It was put in place to address the potential threat to the domestic supply chain of “critical minerals” from foreign adversaries.
As the market awaits a final record of decision for the Pebble Property, which is slated for “this fall,” speculation remains a driving factor. Since the end of September, NAK stock has managed to climb as much as 24% so far. Get More Information On Northern Dynasty.
Pursuant to an agreement between Midam Ventures LLC and Walcott Resources Ltd., Midam has been paid $225,000 for a period from August 17, 2020, to October 30, 2020. We may buy or sell additional shares of Walcott Resources Ltd in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about Walcott Resources Ltd.
