5 Gold Penny Stocks To Watch As Gold Closes In On New Highs
Gold stocks and certain penny stocks have taken center stage as the price of gold continues to climbs higher this month. Concerns over “COVID-19,” a.k.a the coronavirus, persist as the world waits to find out the full fall-out from the illness. It’s now impacted countries across the globe. More than 2,000 deaths have been attributed to the virus and over 75,0000 cases have been cited in Mainland China alone. While a broad range of industries have either stalled out or stopped completely in China, the adjusted outlook has shifted.
At the beginning of the week Apple Inc. (AAPL – Free Report) warned on revenue guidance. The company said it doesn’t expect to meet its quarterly revenue forecast. Apple initially expected net sales to fall between $63 billion and $67 billion in its second quarter.
“As you can see from the range, anticipates some level of issue there. Otherwise, we would not have a $4 billion range,” CEO Tim Cook said. Needless to say, investors have started flocking to safe-haven stocks.
Gold Penny Stocks To Watch Amid Economic Uncertainty
This is part of the reason why the broader list of gold stocks has shined. The previous high for gold in recent weeks was $1,613.30. Before the market open on February 19, gold futures broke above $1,614. While the market itself has climbed higher at the same time, some speculate that record-high levels may not be sustainable.
Furthermore, a low-rate environment along with no resolution to the U.S. China trade war during an election year could give rise to more uncertainty later this year. With this in mind, here’s a list of penny stocks you may want to watch as gold heads higher.
Gold Penny Stocks To Watch: IMC International Mining
The first gold stock to watch is IMC International Mining (IMCX – Free Report) (IMIMF). Shares of the company have reached highs of $0.50CAD within the last few weeks. This was up 100% from where the stock was trading at during the first few weeks of the year. In light of this, it’s important to look at what has happened along the way.
The initial focus was on its Bullard Pass property. According to IMC International, district production totals were 614,000 pounds of copper, 3,600 ounces of gold, and 15,000 ounces of silver from 17,000 tons mined. Furthermore, an Arizona geological report states that “the mineralogic and structural similarities of the Bullard and Copperstone districts suggest that potential exists for a major gold deposit in the area of the Bullard district”. But this hasn’t been the only point of interest.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
This month the company announced a new letter of intent to acquire 100% interest in Thane Minerals, which owns the Cathedral Project in British Columbia, Canada. The project is in a specific area called the Quesnel Terrane. It hosts past and planned production.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
Suggesting that there could be large-scale potential for gold discovery, the company also brought on industry veteran Greg Hawkins as Chairman to the Company’s Board of Directors. His track record includes founding project consultant and founding director to projects that resulted in million and billion-dollar buyouts. Read the full penny stock news here.
Gold Penny Stocks To Watch: Harmony Gold Mining Company Limited
Next, Harmony Gold Mining Company Limited (HMY – Free Report) has been pushing higher since February 11. This is when Harmony gold stock hit 2020 lows of $2.74. Following this dip, the gold stock has managed to rally as high as $3.62 during premarket trading on Wednesday. Certainly, the rising gold prices have helped boost trading momentum and sentiment for investors.
Aside from this, Harmony has also reported positive updates, which has helped give shares a boost. Earlier this month the company was chosen to buy AngloGold’s (AU – Free Report) remaining South African assets. In addition to this, Harmony also reported that its earnings per share rose for the first half of its fiscal 2020 year. Revenue also jumped 12% during the 6 months ending December 31.
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However, it’s important to observe other things that may be issues down the line. Harmony reported a decrease in gold production by more than 8%. This was due to a 6% drop in underground recovered grade at one of its mines. Obviously, the new options coming from the AngloGold purchase could remedy this situation.
However, it explained that it would lower the fiscal 2020 guidance for operations as a result. In any case, strong progress, an expanded production footprint in South Africa, and rising gold prices could help maintain Harmony’s proposed plans for growth. So time will tell but for now, HMY stock is galloping higher this week.
Gold Penny Stocks To Watch: Yamana Gold Inc.
Yamana Gold Inc. (AUY – Free Report) has been a steady gainer among gold stocks this year. After trading relatively sideways for the last few weeks of 2019, AUY stock started to trend higher. Rising gold prices have helped in the recent jump but corporate updates have built the framework for positive sentiment too.
The company declared its first-quarter dividend of $0.0125 per share to shareholders of record at the close of business on March 31. This came just prior to announcing strong Q4 and full-year 2019 earnings. Yamana reported quarterly revenue of over $383 million. gold and silver production was 221.6k ounces and 2.97 million ounces respectively. Gold equivalent ounce production comprised 256.3k.
Both gold and silver production guidance was exceeded for the year. Total gold production for the year came in above 900k ounces while silver came in at 10.6 million ounces. Yamana also expects sequential growth in gold production each year through 2022. Thanks to this, Yamana has attracted the likes of Canaccord Genuity which has raised its price target to $6.50CAD from $6.25CAD.
Gold Penny Stocks To Watch: B2Gold, Inc.
Finally, B2Gold Corp (BTG – Free Report) has pushed to new all-time highs during premarket trading on Wednesday. Previous to this, $4.59 was the high set in 2012. That was shattered after the gold stock broke to highs of $4.64 before the opening bell.
This week the company gained attention after announcing that it would donate 1,000 ounces of gold. B2Gold is giving roughly $1.5 million in gold to support black rhino conservation and the communities that protect them in Namibia, Southern Africa. To say this was a gesture for the good of rhino conservation is a great thought.
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However, we can’t ignore the fact that high-level government officials recently launched the Rhino Gold Bar initiative. So it isn’t a bad look on the company considering it has operations in Namibia and Southern Africa is “somewhat” involved in the approvals process for certain mining operations; like gold. Needless to say, B2Gold has reached fresh highs and the price of gold could support more attention on sector stocks.
PennyStocks.com Disclaimer:
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Read our full disclaimer here.
