Mining stocks experienced quite a run last year, and that momentum has seemingly carried into 2021. Things seemed normal for mining stocks before the pandemic started. But once the pandemic came, it brought with it a big increase for mining stocks throughout all of 2020. But now we have reached 2021, so what is going on? Well, the first week of the year went well with the price of gold reaching upwards of $1900 and silver moving past $28 per ounce. But in the second week of January, things have changed a bit for precious metals. As it sits, gold prices are still at about $1,850 per ounce and silver is above $25 per ounce. This is just about where things were back in December before the new year came. So what is affecting these mining assets at the moment?
Well, it seems that the rising pandemic numbers are what have been helping mining stocks hold the momentum in the last few months. Things getting in the way of that include the vaccine. Stimulus is also helping mining stocks as it hurts the cost of the dollar, thus increasing the price of metal assets. President-elect Biden stated that stimulus checks of $2,000 should be issued to Americans in addition to the $600 that already went out in the recent $900 billion stimulus plan. So clearly there is a lot of factors affecting mining stocks. So with that being said, let’s have a look at four mining stocks that are pulling ahead as we reach towards mid January 2021.Top Mining Stocks To Watch
- Fortuna Silver Mines (NYSE: FSM)
- Kirkland-Lake Gold (NYSE: KL)
- McEwen Mining (NYSE: MUX)
- Pan American Silver Corp. (NASDAQ: PAAS)
First up on this list is Fortuna Silver Mines Inc. Fortuna Silver Mines is a mining corporation that explores, extracts, and processes different precious metals. Actively, the company searches for silver, gold, zinc, and lead deposits. Its main property is the Cayloma mine and San Jose mines. It additionally runs the Lindero Gold Project. So how has Fortuna Silver been performing since 2021 has started, and where is it headed next?
So overall in the last year, FSM stock price is up more than $4.40 a share on average. As of January 11th, FSM stock is at $8.50 a share. This is higher than the $8.24 a share it was at on December 31st, 2020. On January 7th, Minaurum announced an option with Fortuna for it to earn up to an 80% interest in MGG’s Taviche silver project located in Oaxaca, Mexico. The President and CEO of Minaurum, Darrell Rader stated, “We are excited to be partnering with Fortuna at the Taviche Silver project”. It will be interesting to see what comes from this partnership.Kirkland-Lake Gold Inc.
Next up on this list is Kirkland Lake Gold Ltd. Kirkland Lake is a mining business that possesses mining rights and land in many places. It explores for different mineral resources at a diverse portfolio of projects. Its main resource searched for at Kirkland Lake’s claims is gold. Its major assets are the Macassa Mine and Fosterville mines in Canada and Australia. It also has a current agreement with Newmont to run exploration on some of its properties as well. What is causing Kirkland Lake Gold and KL stock to perform in the market at the moment?
KL stock price is lower than it was on December 31st, being at about $41 a share as of January 11th. But KL stock could see an uptick if metal prices rise or if the company has positive financial reports. On January 4th, it reached $44 a share on average for example. It will be interesting to see if KL stock is able to uptick again upon one of those two things happening to it. In the last 5 years this mining stock went from a penny stock to a high volume stock.McEwen Mining Inc.
Next up on this list of mining stocks arrives McEwen Mining Inc. McEwen Mining is a company that explores for, develops, produces, and sells different resources. These resources include but are not limited to silver, gold, and copper. It owns 100% interest in the El Gallo project, Fenix project, Black Fox mine, and plenty more. It operates properties in Mexico, Canada, Argentina, and the United States. So what has McEwen Mining’s performance looked like in 2021 so far, and what’s MUX stock doing?
MUX stock had a tough time a lot of 2020 recovering from the negative pandemic affects. In the first week of 2021, this mining stock reached above $1 a share on average. But MUX stock has now fallen to about $0.98 a share on average as of January 11th 2021. On January 8th the company announced a financing plan to fund the development of its Froome deposit that is expecting commercial production by Q4 2021. The financing price is at $11,821,000 private placement offering through common shares.Pan American Silver Corp.
The final mining stock to watch is Pan American Silver Corp. 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. So what has PAAS stock and Pan American’s performance been recently?
PAAS stock in general is up in the last month. As of January 11th, PAAS stock price is at about $34 a share on average. This mining stock has gone up significantly in the last year. In January 2020, it was at just $20 a share on average. This strong performance has solidified PAAS stock as a good potential mining stock to watch. The company intends on releasing 2021 guidance and preliminary production results from last year on January 19th. That is when we can expect PAAS stock to move again.