These Six Penny Stock Gold Mining Companies Are Worth Watching
Numerous speculators love penny stocks for their enormous potential to gain returns, yet penny stocks are theoretical and hazardous. This is particularly valid for organizations in the mining sector. However, where there is risk there is often reward. There is no solid definition for a penny stock. Some analysts may characterize it as any stock that exchanges beneath $1 per share, while other consider any stock which is exchanging at around $5 a share a penny stock .
Some analysts concentrate on the penny stock’s market capitalization, yet most would concur that penny stocks have limited liquidity and resources.
In this article, we will present six mining gold companies that have a solid track record and that are trading at major exchange rates. These companies have positions in the lucrative mines and have potential to expand their operations in adjacent markets. It’s always wise for investors to pick those penny stocks that have some credibility and are trading on major exchange rates to avoid scams.
New traders always try to make out their initial trades; therefore, it is advisable for new investors to invest in the mining sector, particularly gold mining companies. Gold prices have surged significantly since the start of this year and prices are likely to expand as global markets are fumbling. Gold always has an inverse relationship with crude oil and economic environment. Thus, investing in gold mining companies is a perfect strategy for new investors to start trading.
Timmins Gold Corporation
Timmins Gold Corporation (TMM) is situated in Canada, and its gold mining operations are located in Mexico. The company has positions in San Francisco’s open-pit heap leach gold mine in Sonora, the Caballo Blanco gold mine in Veracruz and the Ana Paula gold venture in Guerrero. The company acquired Ana Paula mine in 2015, and is looking to expand operations in other mines.
Timmins Gold has market capitalization of $226 million and its share is currently trading around $0.71 per share. Its share price surged nearly 200% amid its focus bringing general expenses down to survive the downturn when it renegotiated its credit office in early 2016. With the potential growth in gold prices and its positions in lucrative mines, this penny stock has a substantial upside.
Minco Gold Corporation
Minco Gold Corporation (MGH) is a Canadian based company with 13 exploration licenses in China. China has been the globes biggest gold producer. Gold mining in China has clear favorable circumstances, as Asian nations are significant purchasers of gold. Minco’s shares climbed a humble 3.6% this year. The company’s share price has significant upside potential and it is working on the strategy of lowering its cost structure to decline its break-even point.
Lexam VG Gold Inc. (LEX) is also a Canadian miner with numerous advantages in its historical position in the district of Timmins, Canada. It has joint-ventures with top-level gold organizations, for example, Goldcorp Inc. The Timmins zone ventures are contiguous huge gold mines, and hold National Instrument and a preparatory financial appraisal for open-pit structures.
Lexam VG Gold keeps on working its mining assets to increase its production volumes. Given its advantageous area in a verifiably delivering district and its top-level associations with other companies, it is a perfect penny stock for gold mining workers. The organization is interested in merger and securing (M&A) open doors, and may get a takeover offer sooner rather than later. The company’s stock is currently trading at around CA$0.26 per share.
Golden Star Resources Ltd.
Golden Star Resources Ltd. (GSS) is a gold penny stocks trading on NYSE. The company’s stock has great standings with the business sector and is among the quite high volume penny stocks adding up to more than 2.6 million every 30 days. The organization has a few gold exploratory and mining ventures in South America and West Africa. It has additionally extended its gold mining operations to other African nations like Burkina Faso, Niger, and Ghana. Its stock is currently trading around $0.79 per share with a market capitalization of $283 million.
New Gold Inc.
New Gold Inc. (NGD) is a gold penny stock and its shares are exchanging at a normal 5.2 million volumes within 30 days and have showcased a decent reputation of recording financials and providing traders with essential data. This gold mining company broadens its gold operations over several countries, to be specific, Australia, North and South America. It has potential to produce gold of almost 18 million troy ounces. Its shares are trading at around $5 a share with a market capitalization of over $3 billion. New gold is strongly recommended for new investors due to its diverse asset portfolio and strong liquidity position.
Aside from the other gold mining organizations working outside the Unified States to investigate gold, Midway Gold Corp (MDW) made its objective to center its exploratory mission in zones of Washington and Nevada States. It is in the exploratory phases of its gold production. Thus, its low price per share of gold penny stocks and potential to generate higher returns offers a strong entry point for new investors. The organization has not restricted its concentration only on gold; it keeps on searching for silver and mineral rich mines all over the U.S.
Nothing ensures profits in any venture; however the possibility to profit with penny gold stocks begins with discovering well run organizations. A penny gold mining organization ought to have the same qualities of a blue chip organization. Penny stocks need an accomplished administration group set up to regulate the progressing and mining operations. The financials ought to be sufficiently solid to pull in investments that are utilized to develop the business. Despite the fact that penny gold stock shares are offered for $5 or less, that can rapidly change if the organization strikes gold or is acquired by a bigger gold mining company. Therefore, investing in penny stock gold mining companies is a good strategy for new investors to begin their trade.