Over the past weeks, gold stocks have been riding on rising gold prices as the coronavirus pandemic and growing concerns of a recession push investors to the precious metal. However, on Tuesday gold gains were halted after rising 1% on Monday as the dollar became strong. But the bullion losses were limited by the current volatile equity markets.
On Monday the plunge of US oil prices increased gold’s appeal but going to Tuesday spot gold fell 0.2% to $1,689.45/oz. On the other hand, US gold futures eased 0.4% to $1,704.60/oz.
Gold Stocks Benefiting From High Gold Prices #1 Newmont Corporation
The coronavirus pandemic has hit several sectors including mining but with several operators reopening mining this could boost gold stocks. For instance, Newmont Corporation (NYSE:NEM) has indicated that it will reopen its gold mines in South America and Canada that it closed last month to combat the spread of coronavirus.
The shutdowns affect the Cerro Negro mine in Argentina, Eleonore mine located in Quebec as well as the Musselwhite operations in Ontario. Canadian and Argentinian authorities have lifted coronavirus restrictions and now the company is ready to commence production.
Gold Stocks Benefiting From High Gold Prices #2 Harmony Gold Mining
Another company that is resuming operation is Harmony Gold Mining Company (NYSE:HMY). The company is resuming operation in South Africa after authorities lifted restrictions on mining. Harmony has indicated that it expects an increase of its quarter over quarter operating cash flow by approximately 55% because of the high gold prices.
Gold Stocks Benefiting From High Gold Prices #3 Mountain Province Diamonds
Mountain Province Diamonds (OTCMKTS:MPVDF) has released its Q1 production results reporting a 2% year over year decrease of total mined ore and waste to 9.4 million tonnes. The company recovered 1,655,121 carats at an average of 1.83 carats for each tonne which is 4% more compared to the previous quarter.
Stuart brown the CEO indicated that the Q1 results were in line with the company’s expectation. The company, however, plans to revise its full-year production guidance because of the impact of COVID-19.