The value increase that mining stocks have seen is very impressive. A little over one year ago, many thought it would be another regular year for mining stocks. Then the pandemic arrived and shook up the world of these assets. COVID caused mining stocks to fall hard in the market, but this was very short-lived. In April 2020, mining stocks began to soar in value. Many investors choose to turn to things like precious metals when the economy is not doing well.
There are many types of mining stocks that are increasing in market value lately. The first kind is the most common, gold stocks and silver stocks – precious metals. Metal prices skyrocketed in 2020 and are holding some momentum in 2021 as well. This is not the only type of mining stock that exists in the market, though. Another type of mining asset trending in the market is lithium stocks. Lithium stocks are increasing in value because of electric vehicles. EVs use lithium-ion batteries, and EV production is growing rapidly every year. This increases the need for the mineral. Copper stocks are trending for a similar reason. Its conductivity and cost make it perfect for electric vehicles, which has caused its value to increase.
In 2021 there are multiple things affecting mining stocks. The first of which is mineral prices themselves for obvious reasons. The pandemic is still impacting these stocks, and things could be bad as reopening continues in America. Simultaneously, many analysts do not think the economy can quickly recover, which could keep some types of mineral prices high in the market. Let’s now highlight some mining stocks that are showing higher performance or volume in the market recently.Top Mining Stocks To WatchNovaGold Resources Inc.
The first mining stock to watch is a gold stock, NovaGold Resources. NovaGold is a mining corporation that explores and develops gold mineral properties in the United States. The company holds a 50% interest in the Donlin Gold project holding 493 mining claims in Alaska. These mining claims take up an area of 71,420 acres in the Kuskokwim region of southwestern Alaska. Recently the company has released updates that have affected its stock price.
On March 31st, NovaGold reported its first quarter 2021 financial results. It announced that it has completed its COVID-Free 2020 drill program with ‘outstanding’ results. It also has higher drilled grade thickness than predicted previously. The company has $114 million treasury with $75 million more due in July this year. In addition to all of this, NovaGold actively has joint agreements with Barrick, one of the largest gold producers in the world.
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Gregory A. Lang, President and CEO of NovaGold stated, “By far, our most important objective in 2020 was to protect the health and safety of our workforce, contractors, and partners. Despite the added challenge of navigating a pandemic, all Donlin Gold 2020 drill program objectives were achieved and accomplished with zero COVID-19 cases on site and no Lost-Time Incidents.”Silvercorp Metals Inc.
Next up on this list of mining stocks to watch arrives Silvercorp Metals Inc. Silvercorp Metals is a silver company that acquires, explores, develops, and mines mineral properties located in China. The company will mostly search for silver, gold, lead, and zinc as well. It holds interest in the Ying silver-lead-zinc project and the GC silver-lead-zinc mine. This corporation has been up to a lot so let’s dive right into its recent progression.
Back in February, Silvercorp received its mining license renewal and extension. This is for the TLP, LME, and LMW mines in the Ying Mining District. This extension is for the long period of 20 years given out by the Department of Natural Resources In Henan Province, China. One year ago, SVM stock was worth under $4 a share on average. Today, SVM stock has reached nearly $5.50 a share. This is important progress for the company, helped by positive metal prices in the market. This is the latest that has come from Silvercorp and SVM stock.Equinox Gold Corp.
Another company that made significant 2020 progress and is still performing well now is Equinox Gold Corp. This gold stock has seen its share of ups and downs, but also has lots of recent announcements that could help it move forward in the market. Equinox focuses on acquisition, exploration, and development of mineral properties. Equinox will explore for gold, silver, and copper at its mineral deposit locations. Equinox’s primary assets include the Aurizona gold mine that covers 107,023 hectares in Brazil, as well as the Mesquite gold mine and Castle Mountain properties in California.
The company’s latest update comes from April 7th, 2021. Equinox announced that it has completed the acquisition of Premier Gold Mines Limited. This means that Premiers interest in the Hardrock Project in Canada, Mercedes Mine in Mexico, and Hasaga and Rahill-Bonanza exploration properties will be added to its portfolio. The spin off i-80 Gold Corp. made by Premier was also acquired by Equinox Gold.
The CEO of Equinox Stated, “With Mercedes and Greenstone in our portfolio, Equinox Gold now has eight operating mines and one of the largest gold reserves in our peer group, all in the mining-friendly jurisdictions of Ontario, California, Mexico and Brazil.” The companies believe that shareholders will benefit from this, and it will add the ability to advance its Greenstone Project. Equinox is working on construction at its Santa Luz mine at the moment, and expects Greenstone construction to start this year, which is its flagship project. It is also expecting to expand its current projects significantly during 2021.