4 Mining Penny Stocks For Your July 2021 Watchlist
With the price of gold remaining high, mining penny stocks are showing solid market potential right now. Very recently, Credit Suisse continued its hold rating for gold and put a year-end forecast for $1,900 an ounce.
“We continue to remind investors that the current gold price still allows for healthy margins and free cash flow for almost all the producers in our coverage. On top of that, balance sheets have never looked better.”Fahad Tariq, the Precious Metals Analyst at Credit Suisse
Often, investors will use mining stocks as a way to hedge bets against market uncertainty. And while penny stocks in the mining sector can be more volatile than blue-chip mining stocks, the sentiment remains. So with inflation numbers continuing to rise, many traders are looking toward mining to beat out any negative effects from the pandemic on the economy.
While many are uncertain about what the future holds, the overall sentiment does seem positive. So, with mining penny stocks rising again today on July 14th, some investors are taking note. It is also important to consider the underlying price of the resources that a company mines, as well as the companies fundamentals. Considering all of these factors, here are four mining penny stocks to watch right now.
4 Mining Penny Stocks to Watch in July 2021
- IAMGOLD Corp. (NYSE: IAG)
- New Gold Inc. (NYSE: NGD)
- Harmony Gold Mining Company Ltd. (NYSE: HMY)
- Denison Mines Corp. (NYSE: DNN)
IAMGOLD Corporation (NYSE: IAG)
IAMGOLD Corporation is a mining penny stock that explores for, develops, and operates gold mining properties. The company currently owns an interest in the Rosebel mine, Essakane mine, Westwood mine, and many other projects. In addition to gold, the company also explores silver and copper as well.
These precious and semi-precious metals make up the backbone of most mining companies investors are watching right now. And, the rising price of gold could be one of the reasons that shares of IAG stock are increasing in July 2021.
It’s important to consider that trading for mining stocks is usually much flatter than other penny stocks. So, we don’t usually see double or triple-digit percentage gains like we can with other small-caps. However, since last week, shares of IAG stock are up by a respectable 2% or so.
While IAG has not released any company-specific news lately, as mentioned before, it will often move up or down with the price of gold itself. On July 13th, gold prices increased and so did IAG stock price, indicating this clear correlation. Another example of this comes as IAG stock hit highs last year due to the record highs that gold reached. Considering this, is IAG stock worth adding to your watchlist right now?
New Gold Inc. (NYSE: NGD)
New Gold Inc. is a gold mining penny stock that develops and operates mineral mining properties. In addition to gold, the company also searches for silver and copper deposits, similar to IAG. Its main properties are the Rainy River and New Afton mines which are both located in Canada. In addition to this, New Gold Inc. has several other mining properties in its pipeline.
On June 10th, New Gold released its latest updater for investors to consider. The company provided an exploration update on its New Afton Mine. This included the previously announced information that the company has received the Mines Act permit enabling mining of the B3 zone at New Afton.
“This is a significant milestone for the New Afton Mine. With the receipt of the B3 permit, ore extraction activities will begin this quarter and ramp up over the year. C-Zone development continues to advance with C-Zone extraction expected to begin in the second half of 2023.”The President and CEO of NGD, Renaud Adams
This is big news as it shows that New Gold Inc. could have access to a new slew of resources to mine. Whether this makes NGD stock worth keeping an eye on, however, is up to you.
Harmony Gold Mining Company Limited (NYSE: HMY)
Harmony Gold Mining Company Limited is another mining penny stock that is pushing up on July 14th. While its gain of around 2.5% at midday is not something to write home about, it is significant enough to take note of. For some context, the company explores for, extracts, and processes gold.
Additionally, Harmony explores for silver, copper, and uranium deposits, which add to its large portfolio of offerings. Currently, Harmony Gold Mining Company Limited has nine underground operations and additional interests in other properties in various locations.
There is no company-specific news that is causing Harmony Gold Mining Company Limited to increase in market value. As mentioned numerous times before, HMY stock often moves when the price of gold or other minerals shoot up or down in value. At one point in 2020, HMY stock left penny stock territory, reaching above $7 per share on average.
This was around the same time that gold reached a new record high. Despite no recent updates from Harmony Gold Mining Company Limited, its volume is nearly double its average at the moment. With the price of gold showing solid momentum right now, HMY could be worth adding to your list of penny stocks to watch.
Denison Mines Corp. (NYSE: DNN)
YTD, shares of DNN are up by a very solid 55% or so, with over 30% of those gains occurring in the last six months alone. For some context, Denison Mines Corp. is a mining penny stock that explores uranium deposits. Denison actively searches for these deposits in Canada at its Wheeler River Uranium project.
The most recent update from DNN came on June 15th. This occurred as the company announced that it had acquired 50% ownership of JCU Exploration Company Limited (Canada) from UEX Corporation. This deal was made with a cash consideration of $20.5 million.
“Denison welcomes this new partnership with UEX. We are pleased with the acquisition terms for this unique and valuable portfolio of strategic Canadian uranium interests, which have been meticulously accumulated by JCU over prior decades.
Following this acquisition, Denison will not only increase its indirect ownership of the Company’s flagship Wheeler River project but will also expand its asset base to include additional important Canadian uranium development projects such as Millennium and Kiggavik.”The President and CEO of Denison, David Cates
The uranium market has steadily increased in value over the past year and a half. With the world looking for the newest and most efficient form of renewable energy, uranium continues to top the charts.
Because it is both extremely efficient and a clean source of power, investors are searching for the best uranium penny stocks to buy. Whether DNN is a part of this is up to you. So, with this recent advancement in mind, is DNN stock worth adding to your watchlist?
Which Mining Penny Stocks Are You Watching?
While some investors tend to search for penny stocks that have large gaining potential in the short term, others look to do the opposite. This includes penny stocks that could be longer-term buys or those that have solid future opportunities. Within the mining industry, there are plenty of stocks to watch that fit the bill.
As always, investors should do the due diligence needed to understand whether a penny stock is worth buying. This includes understanding its fundamentals and the speculative factors impacting its price. Considering all of this, which mining penny stocks are you watching right now?