The Russia-Ukraine conflict has sent a surge of uncertainty across all markets this month with several industries in the crosshairs of investors. Oil and energy stocks have reigned supreme amid new sanctions on Russian oil. Meanwhile, grain prices have skyrocketed, bringing attention to things like wheat and fertilizer.
Recently, metals prices have also shot up significantly with prices for things like nickel and preciously metals exploding this week. Nickel, alone has sent shockwaves across the market as some called it the Mother Of All Short Squeezes (MOASS):
“This has never happened before in the history of the nickel market…Unprecedented’ is an overused word, but this actually is.” Guy Wolf, the global head of market analytics at Marex, an energy and commodities broker, told The Times recently.
Top Penny Stocks To Watch
- Northern Dynasty Minerals Ltd. (NYSE: NAK)
- The Metals Company (NASDAQ: TMC)
- Tanzanian Gold (NYSE: TRX)
Best Penny Stocks To Buy?
In general, mining stocks have come into focus for traders and based on current trends, that is for a good reason. Just look at small-cap mining stocks like Hycroft Mining Holding Corp. (NASDAQ: HYMC), a gold an silver mining company. The owner of the Hycroft Mine in Nevada recently reported its 2021 operating results, revealing strong production figures for the year that seem to have attracted the attention of retail traders just about a week later. As an inflationary hedge, precious metals have been looked at as safe havens during times of turbulence. Given the recent sanctions, however, it’s more than just safe haven metals gaining appeal from investors.
Northern Dynasty Minerals Ltd. (NYSE: NAK)
Some of the lowest-priced mining stocks have gotten wrapped into the mix this week. Northern Dynasty Minerals has been a long-standing favorite among retail traders as speculation has become a source of bullish and bearish sentiment. This week, NAK stock is back in a positive light thanks to a focus on rare earth and energy metals.
The company continues pressing forward in its efforts to obtain approval for its Pebble Project in Alaska. Ron Thiessen, President and CEO of Northern Dynasty went as far as saying that “While awaiting a decision from the USACE [U.S. Army Corps of Engineers], we continue to assess legal options to address the many possible outcomes from their decision. We are also studying the positive economic benefits of our project for Alaska and the U.S. The Pebble project is too important to be stifled by regulatory inaction.”
According to Northern Dynasty, there are significant levels of resource deposits at the property. In particular, copper, palladium, molybdenum, silver, and gold are among the most prominent.
The Metals Company (NASDAQ: TMC)
A more unique mining company on this list of penny stocks is The Metals Company. The comapny explores for low-impact battery metals from seafloor polymetallic nodules. Its focus is on suplying metals for clean energy infrastucture and the growing electric vehicle industry.
Of particular importance especially in light of recent trends is a peer-revieweed analysis commissioned by TMC. As published in the Yale Journal of Industrial Ecology, the report found that “producing four key battery metals (nickel, copper, cobalt, manganese) from seafloor polymetallic nodules could reduce lifecycle solid waste by 59-93% compared to land ores.”
With nickel, copper, and other energy metals in a very bright light right now, companies with direct exposure have received a flood of attention. TMC stock, for example, has climbed from under $1.40 to over $2.40 within the last week as mining industry speculation has ran its course in the market.
Tanzanian Gold (NYSE: TRX)
Shareholders of Tanzanian Gold recently approved a name change for the company to TRX Gold Corproation, which brought some attention to the company this month. However, the bulk of the market mometum came as the focus for traders zeroed in on mining and metals stocks.
Tanzanian Gold is a gold mining comapany that is looking for 2022 to be a year that it exands on the Buckreef Gold Project. Earlier this quarter Tanzanian reported that the first phase of the oxide mill expansion at the project was fully comissioned with a successful production ramp up.
“he monthly production record of 764 ounces is a great start and a significant milestone for Buckreef Gold. It is a testament to all the hard work by the team on the ground in Tanzania…Buckreef Gold has great momentum as we move forward in our exploration activities while at the same time increasing our production profile, there is an excitement at site!”
Stephen Mullowney, Chief Executive Officer of TanGold
While it isn’t in the energy metals segment of the mining industry, Tanzanian’s focus on expansion during a year where gold price are reaching near-record levels has placed it on the watch list. Furthermore, there’s also a trend making its way across retail trading circles focusing on penny stocks under $1. With both prominent trends, TRX stock could be one that traders take a closer look at this week.
Are Penny Stocks Worth It?
Penny stocks are well-known for their volatile swings. But when you throw in broader trends based on speculative assumptions and major market catalysts, things tend to get amplified. In this case, energy metals, precious metals, gold, nickel, lithium; everthing is in the conversation this week. With so much attention on mining stocks, of course, traders have looked for some of the lowest-priced ways to gain exposure to this trend.
