Penny stocks can be incredibly volatile considering the low price and less liquid markets. But when you factor in additional catalysts like global unrest, which creates a whole new level of market action. Gold stocks are starting to see some of their most volatile sessions. In fact, over the last 60 days, the yellow metal has seen some of its biggest swings to date. Many investors have begun to look at gold stocks and gold mining stocks recently as safe havens.
These safe haven stocks are usually ones that perform best during times of market uncertainty or geopolitical risk like we’ve seen within Iran & Brexit. Needless to say, some of the top hedge funds in the world are beginning to buy gold stocks so I thought it fitting to take a look at a few gold stocks to watch for July:
Junior Gold Stock To Watch:
RosCan Gold Corporation (ROS.V)
This Canadian gold stock has its sites set on one of the top producing gold regions in the world. No, it isn’t North America, it’s West Africa. Over the last ten years, West Africa’s Senegal Mali fault zone has grown into a prolific locale for mining activity. The region generated $1.2 billion in 2015 alone and being that it was 4 years ago, increasing gold prices could signal another bull market for gold stocks.
RosCan (ROS Stock Report) has amassed a significant land holding, encompassing 271km2, through option agreements to acquire 100%-owned permits a prolific gold region called Birimian rocks of west Mali. Roscan believes these are high potential properties, as they are located in an area of existing gold deposits and multi-million-ounce producers. This includes B2 Gold’s Fekola Mine, which lies in a contiguous property to the west of its Kandiole project.
Over the last 3 months, ROS.V stock has traded in a range of CAD$0.10 to as high as CAD$0.32.
Yamana Gold Inc. (AUY) Focuses On A Strong H2
This gold stock has enjoyed quite the rally over the last 60 days. Since late May 2019 Yamana Gold (AUY Stock Chart) has been working its way back toward previous 2019 highs. Besides the surge in gold prices that we’ve seen over the last few months, Yamana has a few other things to keep in mind as well.
Recently the company announced operational results for the second quarter and gave 2019 production guidance. This included outpacing expectations with over 257 thousand gold equivalent ounces produced. The expectation now is for Yamana to continue this momentum to have a strong performance during the second half of 2019. The company also increased its three-year guidance for its Jacobina project. Yamana provided an update on the mine’s phased plan to boost production to up to 225,000 ounces per year by 2023.
Insiders Buying This Gold Penny Stock:
New Gold Inc. (NGD.TO)
Another gold stock to watch for July is New Gold Inc. (NGD Stock Chart). Shares of NGD stock continued to rally on Friday and managed to hit new 5-month highs. The gold company reaffirmed its annual production guidance a few days ago. That could see the company produce nearly half a million gold equivalent ounces from its Rainy River and New Afton Mining operations.
Aside from rising gold prices, NGD stock has attracted attention from Wall Street funds as well. Investment firm Exor Investments (UK) LLP purchased New Gold Inc during the 3-months ended 2019Q2. This is according to the most recent filings of the investment company. The recent 13-F filing shows the firm is adding more gold to its portfolio as well as a particularly keen focus on junior gold miners.
New Leadership To Build On:
Asanko Gold Inc. (AKG.TO)
This is another gold stock that is making a push back toward previous 2019 highs. AKG stock has rallied from below $0.50 to highs of $0.74 on Friday. Most recently Asanko Gold (AKG Stock Chart) has been making management changes within the company. Joe Zvaipa will be appointed EVP and COO effective August 1. Mike Begg, who’s Asanko’s current SVP of Mineral Resources will fill the role of SVP Technical Services.
In line with other gold stocks, Asanko also reported its Q2 2019 production results. “Q2 2019 has been a very strong quarter with the Asanko Gold Mine setting new records in production, sales and revenue. This is particularly impressive given we are in the final stages of waste mining the Cut 2 pushback at Nkran. The Cut 2 pushback will essentially be finished in Q3 2019, marking the end of our investment program, and will enable the mine to focus on cash generation. We remain on track to achieve our 2019 annual production guidance of 225,000 to 245,000 ounces,” commented Greg McCunn, Chief Executive Officer.