5 Precious Metals Penny Stocks To Watch Right Now
On Monday, November 9th, many gold and silver penny stocks saw a big market correction. After gold and silver hit lows of $1,450 and $11.74 per ounce respectively back in March, prices have since rallied. From March to August, gold prices shot up dramatically, hitting a record high of $2,089.20 by the middle of August. Similarly, silver prices hit a high of $29.91 in August, up by 155% from its March lows. While Monday, November 9th may be disheartening for gold and silver stock investors, it could also signal a potential.
In the past few years, we have seen a trend of precious metals stocks dropping in value prior to the end of the year. With this in full swing, we could see the potential for precious metals penny stocks as we move into 2021. In addition, geopolitical tensions usually tend to make precious metals prices rise.
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Lastly, those who invest in gold and silver stocks, tend to do so for a longer-term. This is because they present themselves as stable assets for guarding wealth. With this in mind, it looks like we could see a potential rally next year. All things considered, here are five precious metals stocks that gained some attention amid the recent market swings.
5 Precious Metals Penny Stocks to Watch
- Walcott Resources Ltd. (OTC : WALRF Stock Report)(CSE : WAL Stock Report)
- Iamgold Corp. (NYSE : IAG Stock Report)
- New Gold Inc. (NYSEAMERICAN : NGD Stock Report)
- Yamana Gold Inc. (NYSE : AUY Stock Report)
- Hecla Mining Co. (NYSE : HL Stock Report)
Precious Metals Penny Stocks to Watch #1: Walcott Resources Ltd.
Walcott Resources Ltd. is a mining company that has several mining properties around the world. The company works in the acquisition, exploration and mining of precious metals assets. While WALRF stock has remained under the radar, the company has been working on some big projects. One of its main mining properties known as the Tyr Project, has shown estimates of very high silver reserves.
The company states that it estimates the Tyr Project could hold as much as 4,710 grams per ton of silver ore. In addition to this, the company has stated that it has been focusing on its Cobalt Hill property. Walcott has stated that it owns 8 of the mineral tenures within this one project.
Well this is all great news, let’s take a look at some more recent announcements from Walcott Resources. On September 11th, Walcott announced that it will be following up with studies showing that the Cobalt Hill property holds high grade gold mineralization. Only a week later, the company announced that it had closed on a brokered private placement worth $2,865,750.
Additionally, the company announced that it will use these funds to complete the proposed acquisition of 1256714 B.C. Ltd. With both the Tyr and the Cobalt Hill projects showing potential, Walcott Resources remains a leading mining stock to watch.
Precious Metals Penny Stocks to Watch #2: Iamgold Corp.
Iamgold Corp. is another mining company that works in the exploration, development, and production of gold assets. The company has been working on the exploration of several properties around the world. Recently, it announced its earnings report on September 30th. In the report, the company stated that its quarterly revenue came in at $335 million with a net profit of $60.2 million.
The company also announced that it is working with its partner Oriole Resources, to begin a 10,000 meter air core drilling program in Senegal. Although this project was started earlier in the year, heavy rains meant that it had to halt production. Iamgold has stated that it should have preliminary results regarding this program by the first quarter of 2021.
Under the deal made by the two companies, Iamgold will spend as much as $8 million over a three year time span. With this investment, it will receive a 70% interest in the Senala Project. Tim Livesey, CEO of Oriole stated that “as we have seen from recent drilling on other licenses in the immediate surrounds of Senala, long intercepts with grades well above 2 g/t gold can quickly build the types of volume required for standalone mineable resources.”
On Monday, November 9th, shares of IAG stock dropped by around 6.5% during intraday trading. With this, some investors could view IAG stock as a value mining stock to watch. With a lot in the works, it’s up to investors to determine whether or not IAG stock is worth watching.
Precious Metals Penny Stocks to Watch #3: New Gold Inc.
New Gold Inc. is quite a popular mining penny stock to watch. Since early March, shares of NGD stock have climbed from $0.39 to over $2.28. With this type of performance, it’s no wonder that so many investors have been paying attention. On November 5th, New Gold Inc. announced its third quarter financial results. In the announcement, the company stated that it has been working to ramp up production significantly. The company states that it has a goal of mining 150,000 tons of ore per day in its Rainy River Mine alone. If it is able to operate at this capacity, it would help to improve cash flow and offer capital for other projects.
Renaud Adams, CEO of New Gold Inc. recently stated that “as we enter the final quarter of the year, we will continue to build on the progress made during the year as we position the Company for the future and delver free cash flow generation beginning in 2021.”
As of intraday on Monday, November 9th, shares of NGD stock were down by around 6% to $1.85. While this may seem disheartening, it seems as though this price drop is due to widespread volatility in the mining industry on November 9th. But, with its financials in good standing, NGD stock continues to be an interesting mining penny stock to watch.
Precious Metals Penny Stocks to Watch #4: Yamana Gold Inc.
Yamana Gold Inc. is a precious metals producer based out of Canada. The company has significant operations that deal in gold and silver production around the world. This includes mining properties in the Americas, Canada, Brazil, Chile and Argentina. With its focus on building out new mining operations, Yamana Gold currently has a lot in the works.
On October 29th, the company announced its third-quarter 2020 financial results. In these results, it stated that it has posted increased earnings, EBITDA, and cash flow. Specifically, the company posted adjusted net earnings of around $92.9 million. This is a very solid gain from the same quarter of the previous year’s net earnings of $49 million.
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In addition, the company announced a 316% increase in its net free cash flow over the same quarter of the 2019. While it did miss forecasts by around 20%, the effects of Covid and geopolitical uncertainty need to be taken into account. For 2021, analysts project that the company will post revenue of around $2.01 billion. This would be a 35% increase on the companies sales in the past year. While there is a good amount of uncertainty with AUY stock, investors continue to believe in the future of the company.
Precious Metals Penny Stocks to Watch #5: Hecla Mining Co.
Hecla Mining Co. is another mining stock that recently reported its Q3 earnings. In the report, the company announced that it had beat estimates by quite a large margin. During the third quarter, HL stock posted a quarterly earnings amount of $0.05 per share. In addition, the company posted revenue of around $200 million compared to the previous years same quarter of $161 million. Since the beginning of the year, shares of HL stock have climbed by around 65%.
When we compare this to the S&P 500s gain of 8.6% in the same period, we see that HL stock has grown quite a lot. In addition, the company announced an adjusted Q3 EBITDA f $75 million which is up by around $6 million from the previous years quarter. Hecla Mining also announced that it had increased its dividend by 50% Although the earnings were quite good, similar to the other listed mining stocks, HL stock dropped by around 7% on November 9th.
While it did drop significantly on Monday, many believe that HL stock could have long term potential. With this information, it remains up to investors to decide whether or not HL stock is right for them.