The market for mining stocks has had a lot of bullish momentum in 2021. We’ve seen the prices of gold and silver for example, skyrocket at many points throughout the year so far. So what is creating this bullish sentiment around mining stocks right now? Mining stocks are going up in price as the world reopens. Sure, in some places like India COVID-19 cases are rapidly climbing. But in other big economies like the United States and China, cases have fallen dramatically. It has been reported that at least 45% of the United States population has been vaccinated now.
In addition to COVID-19 coming closer to an end, industrial demand has increased for a lot of materials. Gold, silver, copper, and more have all been going up in price as the world returns to a more normal state.
There are a few things to take note of when investing in mining stocks. The first of which is world news, which as you’ve seen in the last year with the coronavirus. Many mining stocks rallied to new record highs in the last year because of world news. In addition to this, sector news is also very important. This includes things like shortages, demand, mine accidents, and more.
Nobody knows which direction mining stocks are going to move throughout the rest of the near. Gold is close to the $1,900 per ounce price point for the first time in months right now. This is great progress as this is one of the most popular types of mining stocks. With all of the above information in mind, let’s take a look at the top mining stocks to watch this month.Top Mining Stocks To Watch
- Endeavour Silver Corp. (NYSE: EXK)
- First Majestic Silver Corp. (NYSE: AG)
- Pan American Silver Corp. (NASDAQ: PAAS)
One of the more popular mining stocks to watch over the last year is Endeavour Silver Corp. This is a mining business that acquires land, explores on it, and develops it. Endeavour similarly works on the processing, refining, and reclamation at its mineral properties. The properties in question are located in both Mexico and Chile. Endeavour’s primary focus is searching for gold and silver deposits.
On May 20th the company announced that it intersected high-grade gold-silver mineralization at the Bolanitos Mine in Durango, Mexico. The Vice President of Exploration said, “We continue to intersect strong drill results as we step out from the current margins of the Melladito and Belen orebodies, with a number of other targets to drill, along both the Melladito and Belen veins.”
Just one year ago, this silver stock was worth under $2 a share on average. Now on May 27th EXK stock price is at $7.20 a share on average. One month ago the stock was worth under $5.60 per share. So you can see that the growth of EXK has been significant throughout the last year. With that being said, will you add EXK stock to your watchlist?First Majestic Silver Corp. (NYSE: AG)
Another notable mining stock in terms of growth is First Majestic Silver Corp. First Majestic acquires, explores for, develops, and produces product at mineral properties. First Majestic’s main product that it searches for is silver deposits. It owns various mines like the La Encantada mines, San Dimas, and Santa Elena in Canada and Mexico. These properties are more than 160,000 hectares in total size.
Due to severe weather conditions, First Majestic’s production fell quarter over quarter. On May 6th the company reported its first quarter financial results. Its revenue totaled 17% higher or $100.5 million year over year. This was helped by realized average silver prices being 56% higher than the first quarter of 2020.
Keith Neumeyer, the President and CEO of First Majestic said, “Due to the high demand for physical coins and bullion, our online retail store generated $4.8 million in silver sales during the quarter, or approximately 5% of our $101 million in total quarterly revenues, representing a new record in its 13-year online history.” AG stock price has gone up from $10 a share to $17.50 a share in the last 6 months. Will you add AG to your list of mining stocks to watch?Pan American Silver Corp. (NASDAQ: PAAS)
Pan American is a mining business that discovers and progresses mineral properties in Canada and Mexico. Pan American processes, extracts, reclaims, and refine precious metals. It searches for metals such as silver, gold, zinc, lead, and copper. It holds interest in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, among many other mines.
On May 12th the company reported its first quarter results for 2021. This company experienced a lot of negative during the quarter because of COVID-19. The CEO and President Michael Steinmann said, “Q1 was a challenging quarter, as the COVID-19 pandemic continues to grip Latin America, impacting our workforce, communities and operations. At La Colorada, we experienced large inventory build-ups and a blockage of a ventilation project that occurred during commissioning, which reduced Q1 sales and production.”
The company expects to resolve these issues throughout the rest of 2021. Vaccines are expected to continue rolling out which will help the company progress further. It will be interesting to see what impact this has on the company. With that being said, will PAAS make it on to your list of mining stocks to watch?The Future of Mining Stocks
In 2021, there are still plenty of mining stocks that are moving in the market. There is a variety of things affecting mining stocks at the moment. One of them is the pandemic itself, which is still roaring on in some countries despite the vaccines being distributed in others. Yes, this lessens the amount of closures in the world but does not get rid of them. Economic recovery could potentially take a long time. So which mining stocks will make it on to your watchlist?