Mining stocks have had quite the run in 2020. The price of assets like gold and silver has risen exponentially, reaching new record highs. As a result, this has obviously caused an uptick in plenty of mining stocks. Silver is being used more industrially now that places have opened back up which has helped that metal perform well. But there are a few main things that are impacting the price of mining stocks that should be noted if you’re looking to invest or are a current investor. The first news piece that is moving these assets is a jobless claims report from the U.S. Labor Department that was released on December 23rd.
This report stated that on the week ending December 12th, jobless claims dropped by 89,000 to 803,000 week over week. The four-week moving average for new claims rose 4,000 claims from the previous week to a total 818,250. This news is important as unemployment has an affect on mining stocks. In addition to this, the $900 billion stimulus bill that was passed by Congress is being contested by President Trump. The President stated in a tweet that the stimulus checks should be $2,000 instead of $600 that are going to the American people.
Many agreed with this, including Nancy Pelosi. But Trump did not say he would veto the bill, but more stimulus news could be coming in the future. More stimulus lowers the dollar value which as a result could make the price of precious metals like gold increase in price. With so many things impacting the price of these assets it can get confusing where to invest. Rest assured we have compiled a list of the top mining stocks to watch as we continue through December 2020.Top Mining Stocks To Watch: Alexco Resource Corp.
The first company on this list is Alexco Resource Corp. (AXU Stock Report). Alexco is a mining company that engages in exploration, mine development, and operational activities. Primarily, the company will seek silver, gold, lead, and zinc deposits at its locations. Most of its operations are completed in Yukon Territory, Canada. Alexco owns majority interests in the Keno Hill Silver District project. This includes the Flame & Moth, Bermingham, Bellekeno, Lucky Queen, and Onek deposits. Additionally, it includes 725 quartz mining leases and 873 quartz claims. Let’s take a look at what Alexco Resource Corp. has been up to in its recent history.
The most recent company update comes in the form of commissioning and initial concentrate production at the Keno Silver District Mill. The Chairman and CEO of the company Clynt Nauman said, “This achievement has only been possible with the hard work and determination of all our employees and contractors who have worked safely to deliver this milestone.”
The current AXU stock price is at $2.86 a share as of December 23rd. On the day of, it is up 2% a share.Top Mining Stocks To Watch: Cleveland-Cliffs Inc.
The next mining stock to watch is Cleveland-Cliffs Inc. (CLF Stock Report). Cleveland Cliffs is an independent iron ore mining company that operates in Mining and Pelletizing as well as Metallics. The company runs three iron ore mines all over the United States. This includes the Tilden mine, Northshore mine, and many others. It produces iron ore pellets such as standard, fluxed, and DR-grade for blast furnace steel producers. Let’s see what the company is up to recently.
The company announced that it acquired ArcelorMittal on December 9th 2020. The Chairman, President, and CEO stated, “The acquisition by Cleveland-Cliffs of ArcelorMittal USA, boosted by our buyout of Nippon Steel from the I/N Tek and I/N Kote joint ventures, opens a new chapter in the history of the steel business in the United States.”Top Mining Stocks To Watch: Vale S.A.
The next mining stock to watch is Vale S.A. (VALE Stock Report). Vale is a mining company that produces and sells iron ore and iron ore pellots to be used as raw materials. Most of the company’s operations are in Brazil but it operates internationally as well. It extracts nickel, copper, gold, silver, cobalt, and other precious metals as well. The company engages in coal mining too. So let’s look at what Vale S.A. has been up to in its recent history.
VALE stock price has gone up significantly in 2020. As of December 23rd, VALE stock is at $16.78 a share on average. At the start of 2020, it was at around $13 a share on average. At lows in March it dropped under $7 a share at one point. Vale produced 215.9 Mt of iron ore in the nine month period ending on September 30th 2020. This company has seen great recovery and growth as a result of the pandemic making metal prices rise up. That is why Vale is a potential company for your list of mining stocks to watch.Top Mining Stocks To Watch: Harmony Gold Mining Company Limited
The final company on this list of mining stocks to watch is Harmony Gold Mining Company Limited (HMY Stock Report). Harmony Gold engages in exploring, extracting, and processing of gold in South Africa and Papua New Guinea. It will also search for silver, copper, and uranium deposits at its locations as well. Its primary locations are the Witwatersrand Basin, Kraaipan Greenstone Belt, and other surface treatment operations located in South Africa.
The company had negative financial results back in September. This was announced as drops in both revenue and gold production. The negative results hurt the company and were caused by the pandemic. Yet still, HMY stock has been able to perform rather well this year. As of December 23rd 2020, HMY stock price is at $4.66 a share on average. At the start of the year, it was at $3.60 a share on average so this is a significant gain for this mining penny stock. It will be interesting to see how Harmony Gold Mining Company Limited will be able to perform in the future. This proves that even when financials are bad, it is possible for mining stocks to go up based on metal prices.