As penny stocks are extremely volatile, gold stocks are beginning to see some of their most volatile times. With market uncertainty and global unrest, many investors and top hedge funds are starting to play it safe and buy gold and gold mining stocks. Due to the latest push in gold prices, there has become a huge jump in gold stocks. Here is a look at a few gold stocks to watch for July:
Gold Penny Stock to Watch #1: Alio Gold Inc. (ALO)
Based in Canada, Alio Gold (ALO Stock Report) is a gold mining company. The company focuses on the production, development, and exploration in Mexico and the U.S. Alio Gold holds 100% interests in San Francisco Mine in Sonora, Mexico and the development stage of Ana Paula project in Guerrero, Mexico. Over the past three months, there has been some insider buying as President Mark Backens bought $20k worth of shares. Due to the amount purchased, have recent transactions been important?
After insiders buy shares, companies could do well in the years after. Alio Gold insiders own CA$713K of shares, but there was no selling. A hedge fund also raised stake in Alio Gold. First Manhatten Co. increased its stake in ALO stock by 12.4% in the 1st quarter. The firm owns 1.60% of Alio Gold, equivalent to $973,000. ALO stock price shot up 5.46% or $0.79 from its previous close of $0.75. As the stock is more volatile than the market, it may be a gold penny stock worth keeping an eye on.
Gold Penny Stock To Watch #2: Roscan Gold (ROS.V)
Shares of this gold penny stock have been steadily climbing over the last few days. Volume began trending much higher on July 22 after the company’s news release. What was the penny stock news?
Roscan (ROS.V Stock Report) reported positive assay results from two drilling programs at its Kandiole Project in West Africa. This included its diamond drilling and air core drilling programs. This news seems to have sparked a rally in Roscan Gold stock with early highs of $0.16. This is up 45% from its previous week’s low. With more attention on West African gold mining in recent months, this segment may be something to watch.
Highlights:
| In hole ACMan 19-167 | 5.86 g/t Au over 26.0 m (incl. 9.44 g/t Au over 10.0 m) |
| In hole ACMan 19-168 | 3.74 g/t Au over 30.0 m (incl. 6.73 g/t Au over 6.0 m) |
| In hole DDH 19-04 | 8.63 g/t Au over 10.0 m (incl. 11.48 g/t Au over 7.0 m) |
| In hole DDH 19-03 | 6.53 g/t Au over 5.0 m (incl. 10.09 g/t Au over 3.0 m) |
| In hole DDH 19-03 | 5.56 g/t Au over 3.0 m (incl. 7.14 g/t Au over 2.0 m) |
| In hole DDH 19-08 | 3.45 g/t Au over 10.0 m (incl. 6.76 g/t Au over 3.0 m) |
Also keep in mind that West Africa has begun to see a wave of mergers and acquisitions for smaller companies. Smaller companies may become prime targets especially if they are in the process of showing provable reserves. Generally speaking, larger gold companies may tend to have a hard time discovering large enough deposits to make a difference. This is based on the larger overhead costs involved. Hence you could see larger companies deciding to buy smaller ones. There’s also the fact that several key billionaires are starting to take note of small cap gold stocks [Click For More Details].
Gold Penny Stock to Watch #3: Great Panther Mining Limited (GPL)
Great Panther Mining (GPL Stock Report) is a metals mining and exploration company. GPL operates three mines: the Tucano Gold Mine in Amapa State, Brazil, and two primary silver mines in Mexico. These silver mines are the Guanajuato Mine Complex and the Topia Mine.
GPL stock price has moved higher this month due to some recent news. GPL approved a positive production decision for its 100% owned Coricancha gold-silver-lead-zinc-copper mine in Peru. The decision was based on results from a trial sample. President and CEO, James Bannantine, commented: “We are pleased with the results of the BSP and look forward to advancing Coricancha towards commercial production.”
Advancing Coricancha could show GPL success in the months to come. That’s as Great Panther Mining has a twelve month low of $0.54 and a twelve month high of $1.19. On July 22, shares of the mining stock were holding above $0.90 throughout the day.
Gold Penny Stock to Watch #4: McEwen Mining Inc. (MUX)
McEwen Mining Inc. (MUX Stock Report) is a mining and minerals production and exploration company. It has targeted sites in Argentina, Mexico, and the United States. The company’s revenue is established from the production of gold and silver. MUX owns and operates the wholly-owned El Gallo 1 mine in Mexico. The company also has a minority holding in a company that operates San Jose mine in Argentina.
One week ago, the stock was trading as low as $1.71. But to start this week, shares of MUX stock were trading mostly above $1.80. On top of this, over the last week, MUX managed to reach highs of $2.
With its Q2 2019 production results being released, Chairman and Chief Owner, Rob McEwen, commented: “The big events in Q2 were achieving commercial production at Gold Bar in late May and the high-grade exploration results from the Black Fox properties. Production results in the quarter were mixed.”
MUX stock has approximately 362 million shares outstanding as Rob McEwen owns 22% of the shares.
Gold Stock to Watch #5: New Gold Inc. (NGD)
New Gold Inc. (NGD Stock Report) is an intermediate gold mining penny stock. The company owns The Rainy River and New Afton Mines in Canada. NGD also operates the Cerro San Pedro Mine in Mexico and owns 100% of the Blackwater project located in Canada. NGD expects to receive Environmental Assessment approval later this year.
New Gold stock jumped 22.5% since July 15 and has reached highs of $1.56 during that period. Its new project, Blackwater open-pit mine, can be an exciting investment assuming a higher gold price. But concerns from shareholders persist over the Rainy River Mine. And when it comes to penny stocks to watch, any small hiccup could mean volatility.
The main reason is based on a higher operating cost. So it’s noted that progress has been made on the Rainy River mine. Shareholders can be reassured that production is on track to meet annual guidance of between 250,000 and 275,000 gold equivalent ounces for Rainy River.
