The coronavirus scare and oil price war have both created turmoil in the market, and consequently, the price of the goal is soaring as investors look for safer assets. Back in January, the precious metal was trading at $1,321 an ounce, but recently, it went past the $1,690 an ounce barrier to hits its highest level in seven years.
In such a situation, it is worthwhile to consider whether investments in gold stocks are going to be profitable. To that end, here is a look at four gold stocks to watch heading in March.
Gold Stocks To Watch #1: IMC International Mining
While a number of gold stocks have consolidated over the last few days, IMC International Mining (IMCX – Free Report)(IMIMF) has upheld its trend. Though it hasn’t made new highs, it also hasn’t fallen prey to the market’s sell-off. So as most junior mining stocks are in recovery mode, IMC has maintained its trend between $0.38CAD and $0.44CAD.
Something that could be in focus is the recent updates coming from the company regarding new opportunities in British Columbia as well as additional leadership changes. First, the company announced a letter of intent to acquire Thane Minerals, who owns 100% of the Cathedral property in B.C. The location is knowns for its rich mineralization and host to past and planned production of 50 billion pounds of copper, 28 million ounces of gold, and has 16 producing and development projects. The company also plans to bring on 50 industry vet, Greg Hawkins to its board. Hawkins would effectively join the company’s newly appointed CFO, David Charlton. Specifically, Hawkins was the Founding Project Consultant and/or Founding Director of seven public and private Exploration/Development ventures. Some of these ventures resulted in significant acquisitions by larget mining companies.
Gold Stocks To Watch #2: Barrick Gold
But just because Gold Fields missed the mark, doesn’t mean all gold stocks should be questioned right now. Barrick gold stock has been maintaining a trading level above $19 for most of February and March. Other than the late-February flash drop in gold, Barrick has seen an increase in trading volumes this quarter. One of the keys to its progress was the company’s better than expected financial results.
The company’s Q4 EPS beat estimates while sales came in ahead of forecasts. Gold production delivered over 1,400 ounces of gold with an All-In Sustained Cost of $923 per ounce & a realized gold price o just over $1,480 per ounce. Considering the monstrous move in prices this year, will the company be looking at another big quarter?
Kinross gold stock also managed to sustain most of its gains for the year despite the recent dip. After hitting highs of $6.27, shares pulled back at the end of February following suit of the rest of the sector. This first move came as the company reported better than expected earnings. The company added 7.7 million ounces of gold to estimated measured and indicated resources.
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Gold Stocks To Watch #3: Yamana Gold
Next, Yamana Gold stock (AUY-Free Report) has also started to recover during Tuesday’s afternoon session. With the rise in gold prices, juniors like Yamana have been able to capitalize. The stock has tested its 50-day moving average several times over the last few weeks. While it briefly broke below this level, Yamana gold stock has managed to sustain trading at or above this level for most of the year. Assuming this as the case, AUY’s 50MA could be a strong level of support for the gold stock.
The company recently announced an update for exploration activities on its pipeline of gold projects, including the Domain Joint Venture in Manitoba. The JV is held 70.4% by Yamana and 29.6% by New Dominion, with Yamana being the Project Operator. Eric Roth, New Dimension’s CEO, commented, “We are very pleased to be reporting that Yamana is continuing to evaluate the Domain JV area. Considering the significant amount of drilling that has been completed at Main Zone, together with the potential for new discovery, we feel strongly that the project has the potential to grow rapidly. I look forward to keeping the market informed on progress at Domain.”
Gold Stocks To Watch #4: B2Gold
Another one of the junior gold stocks to watch was B2Gold (BTG-Free Report) on Monday. The junior gold stock is roughly 3.94% of the total assets in the VanEck Junior Gold ETF (GDXJ-Free Report). Shares of B2Gold stock exploded last week after pulling back during the last week of February. Since March 2, B2Gold stock jumped from lows of $3.89 to highs of $4.57 last week. While many gold stocks including BTG slipped at the end of the day Friday, this weekend’s gold surge could spark a boost later this week.
In its most recent financial statement, B2Gold showed that it generated revenues of $314 million in the fourth quarter. This reflected a year-over-year growth rate of 36%. In addition, B2Gold’s consolidated gold production was 234,416 ounces in the fourth quarter.
The company stated, “Looking forward to 2020, B2Gold remains well-positioned for continued strong operational and financial performance with consolidated gold production forecast to be in the range of between 955,000 and 1,005,000 ounces.”
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp.(CSE: IMCX), 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 March April 30, 2020 We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) 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). Read full disclaimer here.