The gold price is on the move again, climbing back up off the $1680 level where it was sitting in March. There is now a wider awareness among investors that inflation is creeping up, the inevitable result of ongoing global stimulus measures. With many countries now reopening after the second wave of the pandemic, spending is increasing too.
At time of writing the price of gold was over $1900 an ounce, prompting forecasts from many quarters that it is going to break $2000 this summer. With that price rise has come intense interest in gold mining stocks as well. Here are some that we have been following over the last few months.
Greatland Gold (LSE:GGPL)
A favourite with investors, Greatland Gold is working on the world class gold-copper mine at Havieron in Western Australia. This is the company’s flagship asset, which it is developing in conjunction with Newcrest Mining. It recently told investors it had started an underground decline at the site, which should provide access to the top of the ore body at Havieron. Greatland Gold said it is on course to become a large, multi-commodity, bulk tonnage underground operation. The share price will be helped by the fact the miner is also gunning for copper, which is also on a run at the moment and likely to continue for some time. Prices and volume have been subdued in the stock since February, when it slid off the 37.50 level. Currently trading at 21.15.
China Gold International Resources Corp (TSX:CGG/HKEx:2099)
China Gold International has had a whopper of a quarter already. The Toronto-listed China gold miner saw its stock move from less than two bucks in February to literally double in price and this before the gold price rallied. Results out on 13 May saw revenue up by 83% and mining operation earnings up by 360% to $83m. The miner, which runs two mines in China, the CSH Gold Mine in Inner Mongolia and the Jiama Copper-Polymetallic Mine in Tibet, went from an operating loss to a profit of more than $57m. CEO Liangyou Jiang called it the best quarterly performance in the company’s history. The company is already selling gold from the CSH project and copper from Jiama, while also continuing exploration efforts at both sites. Profits from this one have the scope to be spectacular.
Brigadier Gold (TSX-V:BRG/OTC:BGADF/FRA:B7LM)
Brigadier Gold has just finished the first phase of its exploration activity at its Picachos Project in Sinaloa in Mexico. This is focusing on areas beneath and around previous historic mines and mining exploration. It is in prime gold and silver yielding territory in Mexico and with decent transport links to the Pacific coast. Brigadier has been using diamond drill technology for the first time at Picachos and has yielded interesting gold and silver results from the site already. There are still some assays to come in, but Brigadier Gold has also now discovered what it is calling bulk tonnage copper type mineralisation at the site. Volumes in the stock have been picking up quietly over the last 10 days or so. One to keep on the radar. Based on past performance, new results have the scope to make this one move quickly.
Listen: Podcast with Michelle Robinson, Chief Geologist, Brigadier Gold
We will be revisiting SolGold in more detail in the near future, as it has been a while since we looked at the stock. It is currently exploring in Ecuador where it is the largest and most active concessions holder. It is active in the Andes Copper Belt and just published an update on its drilling results from the Tandayama-America porphyry copper-gold target. SolGold has intersected copper and gold mineralisation at the site, further good news for investors who have been returning to the shares after they slumped badly in January, sliding off a high close to 38 in London, before finding a platform just above 20. Since early April Sol Gold stock has come roaring back, paring those losses. At the time of writing it was trading at 36.15.
Minnova Corp (CVE:MCI/OTC:AGRDF)
This Manitoba gold mine is coming back to life this summer as the snow has melted and pandemic-induced restrictions on exploration in Canada are a thing of the past. Minnova is looking to revamp and bring back online an existing gold mine as well as start new exploration around the same site. Minnova has the rights to the PL Mine and has the scope to rapidly become profitable if gold is above $1250 an ounce. It already has a lot of the necessary infrastructure on site including a crusher and we are anticipating drilling to start there imminently. Early on site drilling from last year produced multiple high grade intercepts and the miner reported results from a limited spring drilling campaign of Au 27.44 gpt at a depth of 109m. More to come from exploration here in the next few months.