3 Gold Penny Stocks To Watch After Latest Market Rally
Gold futures pushed broader gold stocks higher on March 3. This comes after one of the worst weeks in the stock market in the last 12 years. While gold prices slid along with the market, March has come in like a lion for the yellow metal. Gold futures broke back above $1,600 on March 3.
Much of the focus has been on the coronavirus over the last 7 days, however, underlying risks still weigh on global economies. These risks are what have helped boost gold prices and, in turn, gold stocks. During times of economic uncertainty, we generally see a flock to safe-havens.
Time To Buy Gold Stocks?
Right now, gold could be offering an opportunity it hasn’t shown in over a decade. The last time prices were at these levels, gold ended up rushing to all-time highs with plenty of gold stocks following in its wake. Is it prudent to gain exposure to gold stocks right now? Considering that the Fed just lowered interest rates to some of the lowest in recent times, gold stocks could be a major focus.
Many of the big industry vets would say, Yes. Legendary investor Paul Tudor Jones said that gold is his favorite trade for the next year or two, “I think one of the best trades is gonna be gold. If I had to pick my favorite [bet] for the next 12 to 24 months, it’d probably be gold.” The yellow metal “has everything going for it,” he said, adding that if it can reach $1,400 an ounce, it will push to $1,700 “rather quickly.”
Read More
- Will These Penny Stocks Trade Higher In March?
- Not All Good In The Robinhood
- Penny Stocks To Watch After New Coronavirus Cases Emerge
The value of gold could continue to present itself, especially in this low rate environment. Furthermore, thanks to the coronavirus slowing economies down further, some central banks including the US have hinted at lowering rates even further. According to Goldman economists Jan Hatzius and Daan Struyven, Powell’s address “strongly hints at a rate cut at or even before” the FOMC’s next meeting scheduled in March.
Gold Penny Stocks To Watch
There is something important to note, especially for gold stocks, from the upcoming FOMC meeting on the 17th & 18th. The meeting is associated with a Summary of Economic Projections as well. Leading up to this, it may not be a bad idea to have gold stocks on your list of penny stocks to watch.
IMC International Mining
First, IMC International Mining (IMIMF – Free Report) (IMCX) has managed to put its foot on the gas this year. The company has not only raised funds to further develop its current assets, but it has also focused on expansion. In February the company announced that it signed a letter of intent to acquire Thane Minerals. Thane owns the Cathedral property in British Columbia’s Quesnel Terrane, which has been host to past and planned production. I’ll be the first to say that small-cap gold stocks and LOI’s are an interesting combo to watch and many times deals can get lost in the shuffle.
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.
But why IMC International could be one of the gold stocks to watch right now has a lot to do with its March 3rd announcement. On the surface, the headline simply suggests new trading opportunities on the Frankfurt exchange. However, a closer look at the update and you’ll likely see a key date: March 15. This is when (or before) the company anticipates actually closing the deal. If and when that happens, it would effectively give IMC direct exposure to one of the top gold discovery locations in the world.
The Cathedral property is south-east of the famous British Columbia Golden Triangle. Furthermore, Cathedral is between two high-profile copper-gold porphyry deposits. With the March 15th date now revealed, it could be a countdown leading up to a closed acquisition. It will also come right before the FOMC meeting, which could offer up its own potential catalysts.
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.
Yamana Gold
Next, Yamana Gold (AUY – Free Report) has made a strong recovery from last week’s drop. Yamana gold stock dipped from 52-week highs of $4.94 to lows of $3.56 last Thursday. Obviously, much of the confusion around the blowback from the coronavirus made an impact. But once the markets figured things out, gold stock including Yamana were back on the move. March 2 saw shares bounce back to highs of $4 with momentum continuing into the March 3rd session.
Aside from gold price appreciation driving momentum, Yamana has also managed to execute on its expansion plan. It set a goal to optimize its portfolio and improve its financial flexibility for the new year. In light of this, Yamana recently announced the sale of its royalty portfolio for $65 million to Guerrero Ventures. The transaction also created a new royalty company that Yamana holds a $45 million stake in.
Read More
- Best Penny Stocks To Buy This Week? 1 Up Over 100% This Year
- Top Penny Stocks To Watch For March 2020?
The company said, “This model is similar to the approach that Yamana took with the creation of its Brio Gold subsidiary, which subsequently became a successful standalone public company and continues to provide valuation upside to Yamana today following Brio’s acquisition by Leagold Mining Corporation and Leagold’s pending merger with Equinox Gold Corp.”
Coeur Mining
Another one of the gold penny stocks to keep tabs on could be Coeur Mining (CDE – Free Report). Similar to Yamana, Coeur dipped last week. On February 28, the gold stock saw early signs of a recovery, bouncing back from lows of $3.92. That recovery further confirmed itself on Monday with shares jumping back to highs of $4.68 at the close. On top of this, CDE stock pushed higher during premarket trading on Tuesday, hitting highs of over $4.80.
Like most gold stocks, Coeur has followed the price action of gold. But aside from production results during earnings, there hasn’t been much progress news from the company. Regardless, it’s important to note its previous successes from 2019. This includes a smaller than expected loss for Q4 along with sales of $195 million. While this missed estimates, Coeur did sign an option deal for an 80% stake in Alianza Minerals’ Tim Property.
Assuming the price of gold maintains or even continues to climb, it could help the company regardless of its last earnings results. The mining company said it expects to spend between $35 million to $40 million. This is to achieve production of 95,000 to 110,000 ounces of gold and 6.3 million to 7.8 million ounces of silver in fiscal 2020.
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). Full disclaimer here.
