As you know, gold stocks have been on an upwards trend for quite some time now. It has nearly been a year since the pandemic started and brought gold prices way up. At one point gold prices even reached past $2,000 per ounce. The yellow metal has come a long way in the last year. Things were seemingly normal for gold prices when 2020 started. Then the pandemic came, and it caused a massive increase in the price of gold and gold stocks as well. Now we have finally arrived in 2021, so what is new with gold stocks? Well, in the first week of 2021, the price of gold pushed back above $1900 per share. Shortly after, the price fell back down to where it was in December 2020.
As of January 22nd, the price of gold has remained over $1,800 per ounce. As the pandemic numbers continue rising, it is only increasing investor trust in gold rather than the dollar. Sure, there is a vaccine being distributed all over the world at the moment. But this vaccine is only going to healthcare workers at the moment, and it is not significantly moving down COVID numbers if at all yet. The stimulus bill passed in December helped gold stocks as well. Now Biden’s $1.9 trillion stimulus COVID recovery bill will only continue the momentum for gold stocks at the moment. Some may stray away from these assets due to the volatility. But as you know, most stocks at the moment have quite a bit of volatility because of COVID. During these times there are still plenty of great gold stocks to consider when looking to invest. So let’s look at four gold stocks that show potential for the future.Gold Stocks To Watch
- Newmont Corporation (NYSE: NEM)
- Kinross Gold Corporation (NYSE: KGC)
- Eldorado Gold Corporation (NYSE: EGO)
- AngloGold Ashanti Limited (NYSE: AU)
The first company to talk about on this list is Newmont Corporation. Newmont Corporation is a mining corporation that produces and explores for silver, gold, copper, zinc, and lead. Its land is located in the United States, Mexico, Canada, Peru, among other countries. The company had proven and probable gold reserves as of December 31st 2019 that totaled 100.2 million ounces. Overall Newmont Corporation holds more than 68,000 square km of land. Let’s have a look at its 2021 performance so far.
The company’s most recent update was on January 14th. Newmont announced a $1 billion share repurchase program. This is for up to $1 billion of common equity to be completed in the next 18 months. This will be executed at its discretion, utilizing open market repurchases from time to time. The President and CEO of Newmont said “Our share repurchase program demonstrates the confidence we have in our world-class portfolio and disciplined operating model to provide industry-leading returns to our shareholders.” This is the latest that has come from Newmont.Kinross Gold Corporation
Next up is Kinross Gold, which is a mining company which explores for land, acquires land, and develops gold assets on its properties. It operates in the United States, Canada, Russia, and more. The company extracts and processes gold ores, then produces and sells the precious minerals. Kinross had 24.3 million ounces and 55.7 million ounces of proven and probable gold and silver respectively as of December 31st. Now let’s see what Kinross has been up to lately in 2021.
The latest Kinross update came on January 7th. The company announced the release date for its 2020 fourth quarter and full year financial statements and operating results. This report will be released on Wednesday, February 10th, 2021 after the market closes. This info includes full year 2021 guidance, exploration and project updates, as well as mineral reserve and mineral resource statements as of December 31st 2020. This will likely be very telling for the future direction of KGC stock price. For now, this makes KGC stock a potential gold stock to watch.Eldorado Gold Corporation
Next on this list of gold stocks is Eldorado Gold Corporation. Eldorado Gold is a mining company that explores, discovers, develops, acquires land, produces, and sells minerals. It’s primary products include gold, silver, lead, zinc, and iron ores. Eldorado operates the Kisladag and Efemcukuru mines. Its properties are located in Canada and Greece. So what has come recently from the Eldorado Gold company?[Read More] Top Mining Stocks To Watch Next Week
On January 21st, Eldorado and QMX Gold Corporation announced a definitive arrangement agreement. This is for Eldorado to acquire all outstanding shares of QMX for CAD $132 million on a 100% and fully diluted basis. The President and CEO of QMX, Brad Humphrey stated this about the acquisition, “After evaluating the terms of the transaction, management and the board of directors of QMX view this transaction as beneficial for all shareholders as it provides immediate value for their support and the opportunity to continue to benefit as part of an established and well financed gold producer.” That is the latest from the company.AngloGold Ashanti Limited
The final company on this list is AngloGold Ashanti Limited. AngloGold Ashanti is a gold mining company that produces gold, silver, uranium, and sulpheric acid. It currently operates 14 mines and three projects, located in nine countries around the world. This includes the Americas, South Africa, Continental Africa, and Australia. So what has this gold company been up to in 2021 so far?
AngloGold Ashanti has not yet released any updates in 2021 so far. But it can be expected that the company will provide an update or financial results in the near future. As a result, the price of AU stock has been moving in general with the price of gold itself. So in the first week of 2021, AU stock price went up, and then fell back down in the second week of the year. As of January 22nd, AU stock price is at $23 a share on average.