Three Canadian Mining Stocks Performing Well During The COVID-19 Pandemic

With the coronavirus crisis deepening various equity markets have been affected adversely but some Canadian mining stocks could offer investors a great investment alternative. The downturn resulting from the pandemic has forced investors to turn into mining stocks.  Gold prices have been rising as concerns of a global recession grow and with oil prices currently declining, investors have turned to bullion thus pushing the price which is a great opportunity for Canadian mining stocks.

Precious metals are valuable investments during the downturn as they hold value or even appreciate and can be stored until it is right to sell. Therefore investments in mining stocks reflect this value for investors to take advantage of.

Newmont among Canadian mining stocks reaping from rising gold prices

For instance, Newmont Gold Corp (NYSE:NEM) has benefited from the jump in gold prices and it has been consolidating its position in the industry. The company is pursuing various projects that include Tanami Expansion located in Australia as well as the expansion of the Ahafo mill and the Subika Underground project in Africa.  Last year the company generated 1.1 million gold ounces from operations in Africa at less than $800/ounce.  This was due to the completion of the expansion of the Ahafo projects. Between 2020 and 2024 the company is targeting 75,0o0 to 100,000 gold ounces annually.

The company continues to do well because of its controlled allocation of resources and kit recently divested its Ontario-based Red Lake complex for $375 million to Evolution Mining Limited (OTCMKTS:CAHPF). With the completion of the transaction, the company can now focus on other opportunities and management of its 12 diversified operations.

Agnico drew its credit line to cushion against COVID-19

Also, Agnico Eagles Mines (NYSE:AEM) is one of the Canadian mining stocks that have positioned themselves to emerge from the COVID-19 crisis strong. The company recently drew $1 billion from its $1.2 billion unsecured line of credit as insurance against then the effects of COVID-19. The company later suspended and minimized operation in some of its mines because of the pandemic.

The company is yet to use the credit line and its CEO Sean Boyd indicated that it has used part of its cash in paying off $360 million of its debt. Despite the current challenges on going the company is among the gold miners that are benefiting from the increase in gold prices. The prices have been surging and are almost surpassing 8-year highs.

Rockridge intercepts gold deposits at the Raney Project

Rockridge Resources Ltd (OTCMKTS:RRRLF) is among the Canadian mining stocks that have been aggressively focusing on the development of gold and copper projects in Canada. The resource exploration company currently operates two projects which are the Raney Project and Knife Lake Project.

Raney project is the main gold project of the company which should capture the attention of investors. Recently the company announced the completion of 9 diamond drill holes at the Raney Project in the 2,070 meters diamond drill program. Preliminary results indicate gold intercepts around 28.0g/t gold more than 6 meters.

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This article by Money News National is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Money News National has no position in the stocks mentioned. Thank you for reading.

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This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

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