Canadian mining stocks have withstood the recent turmoil on equity markets caused by the COVID-19 pandemic. Although miners were forced to shut operations due to COVID-19 some resumed operations sooner than anticipated. Most importantly the miners have benefited from the growing prices of precious metals.
Barrick to Commence exploration at Pueblo Grande project
One Canadian mining stock that has performed well during the pandemic is Barrick Gold (NYSE:GOLD). The company was among the companies that didn’t suspend operations amid the COVID-19 pandemic. Barrick has been generating significant returns recently and Zacks Consensus Estimates for its full-year earnings are up 8.64% over the past quarter.
The company has continued to enhance its position and has commenced fieldwork and exploration at Precipitate Gold Corp’s (TSXV:PRG.V) Pueblo Grande mine in the Dominican Republic. The mine is in proximity to Barrick’s Pueblo Viejo project which is a joint venture between the company and Newmont Goldcorp (NYSW:NEM).
Kinross reaches agreement with Mauritanian Government over Tasiast Sud project
Another mining stock that has performed exceptionally is Kinross Gold Corp (NYSE:KGC). Recently the company reported strong quarterly financial results compared to other miners. Its operations were impacted minimally with the company managing to produce 567,327 gold ounces.
The company has announced that it has solved disputes with the Mauritanian government resulting in the company receiving a 30-year license for exploratory activities for Tasiast Sud. Kinross also reached an agreement with the government resulting in reinstating tax exemption of fuel levies with the Mauritanian government expected to pay the company around $40 million in Vat refunds.
Franco-Nevada among Canadian mining stocks that have rallied in 2020
Franco Nevada Corporation (NYSE:FNV) is also among Canadian mining stocks that have gained significantly this year. The stock is 62.4% up year to date and the company has a 4% EPS growth estimate. One of the factors that have been driving the stock is portfolio diversification. Its two assets the Antapaccay and Candelaria contributed around 12% each to its 2019 revenues.