Are These Gold Stocks On Your List Right Now?
One of the most popular hedges against market volatility has been safe-haven stocks like gold. Gold penny stocks, in particular, have offered larger breakouts during times of harsh negative sentiment in the market. While last week was quite an anomaly, most gold stocks were back in bullish spirits on March 3.
The general trend has been this: Broader Markets Down; Gold Stock up. Now, this is never a guarantee and there are plenty of times where this correlation wasn’t in play. However, if you look at the market, historically, times of economic and financial uncertainty point to higher gold prices.
Thanks to this, gold and gold penny stocks are in focus this week. The coronavirus did a number of stocks, which put a strain on the global supply chain. On top of that, the Federal Reserve found a reason to implement emergency rate cuts on benchmark rates this week. While this could have been seen as a positive for the market, the lasting implication might point to something completely different.
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As a result, an even lower rate environment made a strong argument in favor of gold penny stocks. With this in mind, it may be appropriate to take a look at several gold penny stocks to watch this month.
Top Gold Penny Stocks To Watch: IMC International Mining
First, IMC International Mining (IMIMF – Free Report) (IMCX) has pushed higher this week. While most gold stocks dipped at the end of February, shares of IMC maintained a sideways trend. In fact, over the last few days, the gold stock managed to jump from lows of $0.38CAD to highs this week of $0.455CAD.
The big focal point over the last few weeks has been on a pending acquisition that the company initiated in February. Specifically, this would see IMC acquire Thane Minerals and its Canadian asset in the Quesnel Terrane. British Columbia’s Quesnel Terrane, which has been host to past and planned production. But this isn’t the biggest thing to factor in right now.
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 March 3, IMC announced something to take note of especially if junior gold stocks are of interest. The company anticipates actually closing on its acquisition deal by or before March 15. Considering the speculative nature of junior miners in general, this could be an important date to be aware of. That’s also taking into consideration the gold discovery potential of the Cathedral property.
Top Gold Penny Stocks To Watch: Gold Standard Ventures
Similar to IMC International, Gold Standard Ventures (GSV – Download Report) has also enjoyed a multi-day uptrend since the end of February. Much of the move came after gold prices began to climb. So, similar to the broader gold sector, GSV stock is in line with the overall move.
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However, that doesn’t mean the company isn’t building either. In a late-February update, Gold Standard reported updated pre-feasibility study information. The data was from its South Railroad-Pinion project in Nevada.
Jonathan Awde, CEO and Director of Gold Standard commented: “We are very pleased to see the substantial improvement in project economics in this second PFS. Project design is an iterative process and we expect to see further improvements as we proceed with our development plans. The 2020 drilling program will focus on extending mine life through the potential conversion of Inferred ounces at Pinion, and other satellite deposits, to the Measured and Indicated categories, and step out exploration testing new geologic interpretations at Dark Star .”
Top Gold Penny Stocks To Watch: Gold Resource Corporation
Gold Resource Corporation (GORO – Download Report) has made one of the most text-book technical moves of the bunch recently. As you’ll see on the chart below, it “tested” or traded at its 200-day moving average line (red line) a few days ago. But as a traditional technical level of support, the stock held its ground at the 200MA without crumbling below it. Since then, the gold penny stock has managed to continue heading higher.
On March 3, shares rallied to highs of $4.99 attempting to regain momentum lost last week. This week the company gave an update on its projects. First, the gold and silver producer announced it returned $113 million to shareholders in the form of dividends since July 2010. The unique part about its dividend is that Gold Resource offers the option to convert the cash dividend into physical gold and silver. Furthermore, Gold Resource updated on its proven and probable reserves too.
Jason Reid, President, and CEO of Gold Resource Corporation said, “With construction and commissioning of a new mine being a capital-intensive process during the year, our exploration team delivered great results with a relatively modest $3.6 million 2019 exploration budget. The Isabella Pearl mine’s average life of mine gold grade increased from 2.28 grams per tonne to 3.05 grams per tonne, a very attractive grade for any open-pit mine. For 2020, we are also excited to follow up on the first successful round of drilling at the Scarlet target, as this has the potential to become the Isabella Pearl project’s next gold deposit along our 10-kilometer target-rich property position…July 2020 will mark ten years that the Company has been mining in Oaxaca…A decade of mining later we continue to believe this large and powerful epithermal system has tremendous potential to grow.”
Top Gold Penny Stocks To Watch: Asanko Gold
Finally, Asanko Gold (AKG – Download Report) has managed to jump back above its 50-day moving average on March 3. Similar to how these technical levels can present potential support, they can also indicate potential resistance. While Asanko gold stock could push high enough on March 2, this Tuesday the stock managed to maintain trading above the 50MA for most of the trading day.
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The significance of this is that it could see the 50MA become a potential level of support moving forward as opposed to resistance. Obviously, the stock needs to trade above this level and hold for more than a few hours. But for those looking at technical trading, AKG could be showing certain indications of a more bullish trend.
At the end of the month in February, the company reported updated mineral reserve estimates. This was for its Asanko Gold Mine; a 50:50 joint venture with Gold Fields Ltd (GFI – Download Report) managed by Asanko. “The updated Mineral Reserve Estimate for the Asanko Gold Mine is in-line with the development plan that we announced in August last year which targeted 8-10 years of mine life at a production rate of 225,000 to 250,000 ounces per year. 2020 and 2021 are both expected to be good years for the mine with projected strong free cash flow. Using this updated life of mine plan as a baseline, we are launching a major cost reduction initiative at the AGM and increasing focus on exploration on our prospective 21,000-hectare land package,” said Greg McCunn, Chief Executive Officer.
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.