The present situation with the markets has proven to be a boon for gold, and on Monday, April gold future rose by as much as 5.6% to hit $1567.60 an ounce and up another 6.30% at $1665.45 this morning. The continued uncertainty in the markets has resulted in this state of affairs, and it could be worthwhile for investors to explore the possibility of investing in gold stocks. Here is a look at four gold stocks worth tracking.
Gold Stocks to Watch #1 Coeur Mining
One of the more interesting companies in the gold sector is Coeur Mining (NYSE:CDE), which could benefit from higher gold prices. In addition to that, it is important to mention that the company has also temporarily halted operations at its Silvertip mine, which should ensure better cash flow.
That being said, Coeur is known for diluting its stock to raise cash, and hence it might not be a great long term opportunity. In 2019, the stock gained as much as 80%, but in 2020, the Coeur stock has lost 40% so far.
Gold Stocks to Watch #2 Sibanye-Stillwater
A gold miner which might be hurt in its United States operations due to the coronavirus pandemic is Sibanye-Stillwater (NYSE:SBSW). On Monday, the company announced that it is going to ‘significantly reduce’ the workforce in the United States temporarily due to the outbreak.
This move from the company is apparently going to affect the development of the Blitz palladium project. Sibanye stated that the move from the company would not affect its other projects in the United States.
Gold Stocks to Watch #3 Endeavour Mining
On the other hand, Endeavour Mining (OTCQX:EDVMF) is another attractive option for investors who are looking to cash in on the recent rally in gold. On Monday, the company announced that it had reached an agreement to acquire Semafo Inc in a deal worth C$1 billion. The deal is going to be concluded entirely in cash.
The company stated that the merger would create a gold producer which is going to be among the top 15 in the world and produce 1 million ounces of gold a year. It will also be the largest producer in West Africa. Investors could keep an eye on the stock.
Gold Stocks to Watch #4 Standard Ventures
Lastly, it is Gold Standard Ventures Corp (NYSEAMERICAN:GSV) that could be tracked by investors at this point in time. Earlier on in February, the company announced positive results from the Updated South Railroad Pre-Feasibility Study of the Railroad-Pinion project in Nevada. It is a significant update and one that could have a positive effect on the stock.