Canadian mining stocks have been riding on COVID-19 tailwinds and the rising price of gold leading to some delivering impressive returns this year. Most investors usually consider mining stocks as risky because they can easily be overvalued and then plunge. However for now Canadian mining stocks are benefiting from the high gold prices currently.
Eldorado Gold among top-performing Canadian mining stocks
One Canadian mining stock that has been impressive in the past one year is Eldorado Gold Corporation (NYSE:EGO). The stock is up 53% in the as 12 months outperforming the market that has declined 8.2% in the same period. Over this period the company grew its EPS moving to a profit from a loss.
RBC Capital’s Josh Wolfson early this week maintained a buy rating on the stock with a price target of $7.75. Wolfson expects the company to report earnings per share of -$0.03 in Q3 2020.
Silvercorp invests $4.5 million in Avalon Investment
Silvercorp Metals Inc. (NYSEAMERICAN:SVM) is another mining stock that has been impressive recently and it the past move the stock surged more than 40%. Also, the stock is trading above its 20-day SMA and coupled with solid price performance the stock is expected to continue with this impressive run.
The company has announced a $4.5 million investment in Avalon Investment Holdings which holds 100% indirect interest in the Omai Gold Mine. Avalon issued 30 million shares to a subsidiary of Silvercorp for $0.15 per share.
Alamos Gold expects Q2 revenue of $111.6 million
Also Alamos Gold (NYSE:AGI) has been impressive in recent months and it was upgraded recently to Zacks Rank #2. The upgrade is a reflection of the upward trend in Alamos’ earnings estimates after it revised its expected EPS for 2020 to $0.33 per share.
The company is expected to report its Q2 earnings on July 29, 2020. According to analysts’ consensus estimates indicating that the company will report revenue of $111.6 million and EPS of $0.03.