Gold looks set to breakout in the upcoming months, maybe even weeks. We wrote about this move earlier this week. But if you are not one to trade commodities and prefer trading stocks, here are some gold stocks that can hit the jackpot.
Equinox Gold Corp (EQX) – Market Cap: $2.26B
Equinox operates entirely in the Americas, with one project in Ontario, two mines in California, two mines in Mexico and three mines and one project in Brazil. With a strong treasury, cash flow from its producing mines and a corporate revolving credit facility, the company is well funded to execute on its growth objectives and rapidly achieve its vision of becoming a million-ounce gold producer. While Equinox looks set to continue their growth, it is a value stock trading at at P/E ratio of 5.4. Value stocks will likely hold up better throughout this year.
Equinox Gold announced in mid-December that it has agreed to sell its Mercedes Gold-Silver Mine in Mexico to Bear Creek Mining Corp. for $100M. The transaction is expected to close in the first quarter of 2022.
The chart broke out of some resistance at $7.10 yesterday and made a quick move up to the next resistance level of $7.50, ending the day with a 9% increase.
AngloGold Ashanti Ltd (AU) – Market Cap: $8.97B
AngloGold is one of the fastest growing gold stocks. The company is based in South Africa and has activities spanning nine countries. The company also produces silver and sulfuric acid as byproducts in South America. It is the third-largest gold producer globally and the top producer in Africa.
AngloGold made a 12.2% move up yesterday, one of the best performers in the sector. The price is up 3% again in pre-market trading today. AU’s 52-week-high was $26.77 in May. If prices were to climb to this level again, that would provide a 25% upside. $23.80 is another level to watch as it has acted as support and resistance on the weekly timeframe.
The 50 DMA has just crossed above the 200 DMA indicating bullish momentum.
New Found Gold Corp (NFGC) – Market Cap: $1.08B
New Found Gold is a Canada-based mineral exploration company engaged in the acquisition, exploration, and evaluation of resource properties. It is primarily focused on gold properties located in the Canadian provinces of Newfoundland and Labrador, and Ontario. The company is focused on advancing its 100%-owned Queensway gold project in Newfoundland.
NFGC had an impressive 2021, rising from lows of $2.50 to highs of $12, a return of 380%. The chart is looking to break a current downtrend line which could see the price breakout to the $9 level.
NFGC has the smallest market cap of the stocks mentioned and could make the biggest move in the sector if gold continues to move higher. Also, its recent history of a strong performance could help a move up.
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