In 2020, the popularity of mining stocks has increased greatly. Gold and Silver have been performing very well this year as a result of the events happening in the world. Those are the main two resources performing well, but there are many others too.
Let’s talk about gold stocks for a second. Gold stocks refer to companies that mine and refine gold. Often these companies will acquire large pieces of land as well, to use for operations. The price of gold is affected by its supply and its demand. The economy has caused the price of gold to reach record highs throughout 2020.
Silver stocks have also been going up this year with the price of silver. Despite the pandemic causing production and sales to slow earlier in the year, things have already changed. When silver is being used more in an industrial setting it tends to go up. With industrial work starting back up again in many places, it affects the price of silver. What will be interesting to investors is how different mining stocks perform once the economy is able to make a recovery.Top Mining Stocks To Watch In October: Freeman Gold Corp.
First let’s talk about Freeman Gold Corp. (CSE: FMAN Stock Report) (OTC: FMANF). Freeman Gold Corp is a gold company with a focus on mineral exploration in a variety of locations. The company develops, explores, and acquires different types of mineral locations. In addition to gold, it also operates silver and copper deposits as well. The company’s Lemhi Mine has an active 5000-meter diamond drill program currently operating. Now let’s talk about some recent news regarding this mining stock.
Freeman Gold announced that it has acquired a back-in right from Yamana Gold Inc. (AUY Stock Report), for its Lemhi Project. The company issued Yamana Gold more than 4 million common shares in the deal. In other news, Freeman acquired Moon #100 and Moon #101, mining claims that are located in its Lemhi project in the historical region.
These mining claims are in a region of drill holes with lots of gold mineralization, which is why the deal was committed. Freeman will hold a complete property package with 0 back-in rights of these properties. This should let the precious resource mining company have more room for its current and upcoming drill projects. In light of the recent spark in gold prices, will Freeman be at the top of your gold stocks list this month?Top Mining Stocks To Watch In October: Helca Mining Company
Up next on this list of mining stocks to watch is Helca Mining Company (HL Stock Report). Hecla Mining Company is a mining company that sells unrefined gold and silver bullion bars to traders and buyers. In addition to gold and silver, the company offers lead, zinc, bulk concentrates, and carbon materials as well. The company owns multiple mines including the Greens Creek, San Sebastian, and Casa Berardi mines. Hecla recently shared that it has increased its quarterly dividend by 50%, and also made its silver dividend better.
Currently, Hecla Mining stock is benefitting from the rise of silver prices. The ongoing pandemic caused a lot of uncertainty in the market, which made many investors choose silver as a way to invest. In addition to this, low-interest rates and liquidity boosts contributed to the rise of silver prices as well. Lastly, the increase of industrial operations globally as well. The company’s earnings and revenue surprises of 0.00% and -7.65% as well.Top Mining Stocks To Watch In October: Pan American Silver Corp.
Now let’s talk about the next mining stock, which is Pan American Silver Corp. (PAAS Stock Report). Pan American Silver Corp. is a mining company that primarily will explore, develop, extract, process, refine, and reclaim silver mines. It also produces and sells gold, zinc, lead, copper, and more. Currently, Pan American has an interest in La Colorada, Dolores, Huaron, Morocoha, and many more mines across the world. PAAS stock has been able to perform very well throughout 2020.
[Read More] 4 Gold Stocks To Watch Turning Heads This Month
Since the start of 2020, PAAS stock price went from $23 a share to $33 a share on average on October 2nd. In the company’s second-quarter results, revenue of $249.5 million was reported. Its consolidated silver production was 2.8 million ounces, and gold production was 96.6 thousand ounces.
Usually, these numbers would be higher but the pandemic has affected this company in a negative way, at least at first. The company’s Latin American operations were in care and maintenance mode for a time as well. All of its mines except for 2 are now fully operational. This is great news for this precious metals company.Top Mining Stocks To Watch In October: Fortuna Silver Mines Inc.
In the final spot on this list, let’s talk about Fortuna Silver Mines Inc. (FSM Stock Report). Fortuna Silver Mines Inc. is a mining company that owns two silver mines in Peru and Mexico. The company also owns a few other additional mines. Now, Fortuna owns the Goldrock Mines since 2016, an acquisition that cost $129 million CAD. These mines have not opened yet still though. Due to its financial results and rising silver prices, Fortuna has been able to increase its market share in 2020.
In early September the company announced that it started irrigation and ore leaching at its Lindero project in Argentina. Its first gold pour is expected early this month. In 2020, FSM stock price has increased by more than 75%. On September 18th to the 21st, its stock price fell due to a large precious metal sell-off.
Despite this, silver has been outperforming even gold in 2020. FSM stock price is still much higher than it was when 2020 began. It will be interesting to see how future silver prices and financial results will affect the stock price of FSM.