Mining stocks have been very interesting to watch in the last year. The pandemic caused some materials like gold and silver to reach record prices in mid-2020. Now in 2021, gold and silver prices have slowed down. Prices of the two metals hovered around the same price point of above $1,700 and above $25 respectively that they had traded at for a few months now. That was until May 6th, when gold finally broke through the $1,800 per ounce level. This is also when silver climbed above $27. The result of this was many gold stocks went up.
The momentum that mining stocks experienced in the last year has brought a lot of new investors to the sector. There are a few questions on the table about what direction these stocks could go in. On one hand, the economy could recover and cause gold and silver prices and demand to go down. In this climate, there is still the opportunity for other metals to thrive, like copper and iron ore are doing at the moment. On the other hand, it can take a very long time for economic recovery and demand could remain steady.
It is important to note that there are many types of mining stocks to look at. Some of the most popular mining assets are gold stocks and silver stocks. Many traders look at these two as defining the entire sector. This could not be further from the truth. In fact, copper and iron ore seem to be the highest performing type of mining stocks in May 2021 so far.
On a day where gold and silver are high performers, there are many choices when investing in mining stocks. With all of this in mind, let’s take a look at three that have potential today.Top Mining Stocks To Buy Or Sell
- Endeavour Silver Corp. (NYSE: EXK)
- First Majestic Silver Corp. (NYSE: AG)
- Hecla Mining Company (NYSE: HL)
Amid the silver price uptick, Endeavour Silver Corp. is performing well. The company is a precious metals mining company that manages all aspects of mining & refining at its properties in Mexico and Chile. Not only does Endeavour look for silver deposits, it also searches for gold deposits.
Part of the reason EXK stock is performing well has to do with rising silver prices. But this is not the only reason for the company’s positive momentum. On May 4th the company intersected high-grade silver and gold mineralization at its Guanacevi Mine. The result of this is 2,982 grams-per-ton silver equivalent.
The Vice President of Exploration, Luis Castro said, “We continue to intersect excellent drill results as we step out from the current margins of the El Curso orebody. There remains an additional 100 m to drill until we connect El Curso with the Milache orebody to the west, and there is a similar gap to fill to connect El Curso with the Porvenir Cuatro orebody (previously mined) to the east.”
When a company posts positive results like this, it can often see positive momentum. EXK stock managed to climb above $6 for the first time since March. The company will be releasing its first quarter earnings report on May 11th which is likely to have an impact on Endeavour’s future. If you’re investing in this mining stock, this may be the next thing to look forward to in terms of things that may affect its share price. Keeping this in mind EXK could be one of the mining stocks to watch.First Majestic Silver Corp. (NYSE: AG)
This silver company acquires land, explores, develops, and produces mineral properties. Its main focus is silver and gold production. Last month, First Majestic Silver Corp. reported its production results for Q1 2021. Its production numbers fell due to lower average silver grades and dangerously cold weather in February causing milling delays.
Since both silver and gold are performing well on May 6th, AG stock is too. Despite the reversal from those production results, the recent uptick is not just because of increased mineral prices though. A new update has possibly changed the outlook that investors have for the company. In contrast to soft production numbers, First Majestic just reported its first quarter financial results and things are looking good. Its revenue grew 17% year over year to $100.5 million total. Its realized average silver price of $27.13 was 56% higher than the first quarter of 2020. Mine operating earnings went up by 33% as well.
Keith Neumeyer, CEO and President 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.”
This positive earnings update is one of the reasons that AG stock managed to jump this week. Will it be something you add AG stock to your watchlist?Hecla Mining Company (NYSE: HL)
For a while, HL’s momentum seemed bearish. That was until its recent earnings report was released on the same day as rising metal prices. But what does Hecla Mining Company do? Hecla will discover, acquire, develop, and produce precious and base metal properties. Its most popular minerals sold are unrefined gold and silver bullion bars, lead, zinc, and more.
In its recent first quarter report, its sales grew 54% to its second highest number in history at $210.9 million. Its gross profit grew $53.4 million to $64.8 million. All of its production numbers increased as well.
The President and CEO of the company Phillips S. Baker Jr. said, “Free cash flow generation was the most Hecla has had in the first quarter in a decade. Since the first quarter is typically our smallest quarter, we anticipate cash flow increasing over the rest of the year. Therefore, the Board has increased the silver-linked dividend at the $25 price threshold by 50% to $0.03 per share annually.”
This is the reason that HL stock climbed over 13% on May 6th and could be a reason to have it on the watch list in May.The Future Of Mining Stocks
The world is in a volatile place at the moment. Something that does not have to do with mining stocks directly like unemployment reports can even affect the price of them. This is because the mining sector moves based on world news too, not just sector news. In terms of gold, the VanEck Vectors Gold Miners ETF (NYSE: GDX) is performing a lot better than it was at the end of March. While precious metals are in a volatile state, there are many opportunities to turn a profit with mining stocks. Which companies will you consider for your watchlist?