These Gold Penny Stocks Jumped Amid More Uncertainty About Coronavirus Implications
There’s something that has continued to captivate the news cycle for weeks now. That “something” is now being called COVID-19. It’s gone by other names like coronavirus and Wuhan Flu. But what we know right now is that it has become a global problem. It’s one that has seen airlines cut flight paths, companies shut down manufacturing, and entire cities go on lockdown.
If this doesn’t seem to make sense to you, consider what the outcome would be down the line. With a pause to manufacturing, logistics, travel – just to name a few – the repercussions could be major. Italy, for instance, relies heavily on tourism but with travel being cut, that now impacts an entire market. Similarly, manufacturing plays a huge role when it comes to the global economy.
Obviously a pause to this has its own ramifications. These are just the broad strokes of it. The point of the article isn’t to go over economics, supply, and demand, etc. But just in case you needed a quick update on why the coronavirus could have such a big impact on markets, these are some basic reasons why. And if you already knew this then, hey, there’s a refresh.
Gold Penny Stocks To Watch As Coronavirus Fears Persist
In any case, one of the big focal points has been on coronavirus stocks. These are typically biotech penny stocks that have some association with the prevention of or treatment for viral infections. But while people search for these speculative stocks, others are finding and making money with penny stocks in another niche.
This one actually has a proven track record of success when it comes to uncertainty in the market. What I’m talking about are gold penny stocks and this week we’re seeing many surge. Are any of these on your penny stocks watch list right now?
Gold Penny Stocks To Watch: IMC International Mining
First, IMC International Mining (IMCX – Free Report) (IMIMF) has been on our list of penny stocks to watch for almost 2 full months. At the start of the year it only traded in Canada under the symbol IMCX. Since then, it now trades on both the Canadian and U.S. exchanges. On January 28, IMIMF went live on the OTC. While the price of gold has likely had an impact on junior gold penny stocks like IMC, the company is also in execution mode.
In addition to its current asset in Arizona (the Bullard Pass), IMC recently signed a letter of intent for another acquisition. This would be a multi-million dollar deal to take 100% control of Thane Minerals in British Columbia, Canada. Not only is the area generally untouched but its also in a region called the Quesnel Terrane. Thane’s Cathedral Project covers over 51,000 acres. Furthermore, there are already six areas with significant copper mineralization, and it includes areas of high-grade silver and gold mineralization.
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.
On top of this, IMC has also been busy arranging its leadership team and board. Greg Hawkins, MSc, PGeo will be appointed as Chairman to the Company’s Board of Directors as part of this acquisition. His experience spans 50 years and he is also the current Director of New Pacific Metals Corp. (NUAG – Free Report). This week, the company also brought on a new CFO, David Charlton. Thanks to these developments, IMC saw shares spike yet again to highs of $0.465CAD by the close on February 24th; up over 80% since the start of the year.
Gold Penny Stocks To Watch: IAMGOLD
IAMGOLD (IAG – Free Report) had one of its best trading days in months on February 24. The gold stock opened the week at $3.29 and by the end of the day, saw highs of $3.71. For most of the year, IAMGOLD had been pushed lower amid a flurry of analysts’ price cuts. The 2020 high sits at $3.82 so it’s within striking distance right now.
Last week the company reported earnings. While IAMGOLD’s management explained how 2019 was a year of challenges, it also plans to commit itself to become a lower-cost producer. “With our strong balance sheet and pipeline of growth projects complementing our core operating assets, we are optimistic about the future at IAMGOLD,” said Gordon Stothart, President, and COO.
Full-year production totaled 762,000 ounces at an all-in sustaining cost of $1,124 per ounce. This was in line with the guidance of $1,090-$1,130 per ounce. In 2020, IAMGOLD plans to produce 700,000-760,000 ounces at an all-in sustaining cost of $1,100-$1150 per ounce. While earnings weren’t as jawdropping as other companies, the latest jump in gold seems to have done the job. IAMGOLD stock has jumped 22% over the last 3 sessions alone.
Gold Penny Stocks To Watch: New Gold Inc.
Meanwhile, New Gold Inc. (NGD – Free Report) had a mixed day of trading. Like the rest of the sector, the gold stock gapped up on February 24. It also jumped to fresh highs for the month. However, it wasn’t able to sustain the move by the end of the day. After reaching $0.95, shares slid back to $0.90 by the close. Does this mark the first sign of a roll-back or is this just some late profit-taking?
Last week the company reported its Q4 and annual results for 2019. It also gave an update to its 2020 outlook. For the year, production was 486,141 gold eq. ounces, which met its annual guidance of 465,000 to 520,000 gold eq. ounces. Revenues for the quarter were $139 million and $631 million for the year. Looking ahead, the company gave production guidance of 313k-343k gold produced. It also expects to produce 465k-515k gold equivalent ounces.
Renaud Adams, CEO of New Gold said, “With the release of our updated life of mine plans we now begin a new phase for the Company as we position Rainy River for profitable operations that drive free cash flow generation by the end of 2020 that will sustain over the life of the mine. We will also continue to focus on advancing development of the New Afton C-zone and expand our exploration program at both operations.”
Gold Penny Stocks To Watch: B2Gold Corp.
B2Gold Corp (BTG – Free Report) also mimicked a similar move as New Gold. Unlike IAMGOLD and IMC International, B2Gold stock gapped up to highs of $4.93 but slid back for most of the session. By the close, however, the gold penny stock managed to hold above its previous closing price by about 2%.
Earlier this year the company reported upbeat results from an economic assessment for one of its projects. The Gramalote Project in Colombia is the target of the assessment. in addition, according to the Mineral Resource estimate for Gramalote Ridge that forms the basis for the PEA, Indicated Mineral Resources of 70,110,000 tonnes grading 0.92 g/t gold for a total of 2,070,000 ounces of gold and Inferred Mineral Resources of 79,030,000 tonnes grading 0.79 g/t gold for a total of 2,010,000 ounces of gold.
B2Gold and AngloGold Ashanti Ltd (AU – Free Report) have agreed on a budget for the feasibility study on the Gramalote Project of approximately $37 million through the end of 2020. Each holds a 50% ownership interest in the joint venture with B2Gold acting as manager. With earnings still due, it will be interesting to see what happens next.
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.