3 Resource Penny Stocks For Your August Watchlist
Throughout the pandemic, many penny stocks investors have turned to resource stocks as a way to avoid market volatility. And while penny stocks in the resource sector do come with a degree of volatility, it is usually less than in other industries.
For some context, a resource stock is any company engaged in the production or sale of commodities. This includes metals, energy, and everything in between. In addition, we also have ancillary resource stocks, such as those that engage in the transport of goods or those that provide other services to the resource industry. In August 2021, investors are showing renewed interest in these stocks as a way to hedge bets against rising Covid case numbers.
In addition to this, many investors are witnessing inflation rates shoot higher than in many years prior. This is the result of billions in stimulus given out over the past year, and fears surrounding the new $1 trillion infrastructure package. So for these reasons, many investors see resource stocks and resource penny stocks as a way to potentially stay clear of higher overall market volatility.
As stated earlier, traders should keep in mind that nowhere in the market is safe from intraday fluctuations right now. Because of the extraordinary times we are living in, there is a lot of movement across the stock market. However, knowing how to use this to your advantage will help when it comes to making money with penny stocks. So, with all of this in mind, let’s take a look at three resource penny stocks to watch right now.
3 Resource Penny Stocks to Watch This Month
- Denison Mines Corp. (NYSE: DNN)
- Gran Tierra Energy Inc. (NYSE: GTE)
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Denison Mines Corp. (NYSE: DNN)
Denison Mines Corp. is a uranium exploration and development-focused company. Its main project is the Wheeler River Uranium Project which is located in the Athabasca Basin region in Saskatchewan. At this project, Denison owns a more than controlling, 95% interest. The Wheeler River Project is reportedly one of the densest untapped uranium resources in the Athabasca Basin, which helps to show why Denison has such a large interest in it. On August 5th, the company reported its second-quarter results for 2021.
“The Company continues to successfully advance on its ambition of developing the high-grade Phoenix deposit, as potentially one of the lowest cost uranium mines in the world, at a time when the uranium market is showing signs of a sustained recovery and the beginnings of a new contracting cycle.”President and CEO of Denison Mines, David Cates
During this period, Denison consolidated a 5% larger ownership in its flagship Wheeler River project moving its interest from 90% to 95%. Just 5 days after this announcement, the company’s stock price has gone up by more than 6.7% in the market. YTD, shares of DNN are up by around 65%, and in the past month by around 4%. With this in mind, will DNN make your list of penny stocks to watch in August?
Gran Tierra Energy Inc. (NYSE: GTE)
Gran Tierra Energy Inc. is an energy penny stock that is up by around 58% YTD. This company explores for and produces oil and gas at its properties around the world. For the most part, Gran Tierra’s operations take place in Ecuador and Colombia. As of December 31st, 2020, the company had total proved undeveloped reserves of 26.2 million barrels of oil equivalent in just Colombia alone.
Gran Tierra Energy is another company that just joined the second-quarter earnings season. On August 3rd, Gran Tierra released its second-quarter results for 2021. The company’s average total production rose 14% year over year. In addition, the company experienced blockades during the quarter as a result of Covid, however, it states that it has begun production once more.
“With production restored, we expect Gran Tierra to generate second half 2021 free cash flow of $100-120 million. With a constructive oil price environment, a successful first half 2021 drilling program, and the expiry of our first half 2021 oil price hedges, we are very excited about the second half of 2021 and all of 2022.”The President and CEO of Gran Tierra, Gary Guidry
Considering this, is GTE stock worth adding to your list of resource penny stocks to watch?
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Seanergy Maritime Holdings Corp. is a penny stock we frequently mention on this site as a result of its momentum in the market. If you’re unfamiliar, Seanergy is a transporter of dry bulk commodities by sea. As of February 19th, 2021, the company owned 11 Capesize vessels that can carry more than 1.9 million deadweight tons of dry bulk commodities. Primarily, Seanergy transports iron ore and coal via its Capesize vessels.
On July 29th, the company reported its financial results for the second quarter and the first six months of 2021. During the period, Seanergy’s gross revenue grew 209% year over year. In the same period, its net income was $2 million compared to a net loss of $11.3 million the year prior. These are both encouraging numbers and show that both the shipping industry and Seanergy in specific, are growing.
“The six-month period that ended on June 30, 2021, marks a significant turning point for Seanergy, with strong financial performance, being the first profitable first-half since the Company’s relaunching in 2015. Most importantly, we have successfully concluded many milestone transactions that saw Seanergy’s fleet growing by more than 60% while solidifying our financial standing.”The Chairman and CEO of Seanergy, Stamatis Tsantanis
With this significant progress in mind, will SHIP make your penny stocks watchlist?
Which Resource Penny Stocks Are You Watching Right Now?
While resource penny stocks may not be the first ones that come to mind for your watchlist, they can be safer alternatives when the market is volatile. Considering that there are so many to choose from, it can be difficult to pick just one or two for your list.
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However, with the right research into the individual company and industry alike, it can be easy to make money with resource penny stocks. Considering this, which ones are on your watchlist right now?