Mining Stocks to Keep an Eye On

September 29th, 2015 by

The mining industry has been mostly in disarray over the last several months as major producers and exploration companies struggle to find solid footing in an increasingly unattractive commodities sector.

Perhaps most notably, the world’s largest copper producer, Glencore (LON:GLEN) has seen a smattering of its name across mainstream headlines as the company’s stock has absolutely cratered due to a combination of financial restructuring and the company’s attempt to cope with bottoming copper prices.

A somewhat similar conundrum has befallen Alcoa (NYSE, SWX:AA; ASX:AAI), a miner who specializes in aluminum and other light metals. Alcoa has settled on a corporate split in order to become more efficient and financially swift. The spin-off would produce two separate firms: one that exclusively handles Alcoa’s aluminum extraction and another that processes the metal into manufactured parts.

After slumping to close out last week, shares of AA have surged as much as 7% over the past two days since the decoupling of the firm’s operations into two units was announced.

AA daily price chart. Source: Google Finance

AA daily price chart. Source: Google Finance

Junior Mining Companies

An extremely successful "junior" miner, apparently.

An extremely successful “junior” miner, apparently.

Although there are certainly differences between the two groups, precious metals miners have largely suffered the same losses as their counterparts in metals like copper and aluminum. According to Gold Stock Trades Editor Jeb Handwerger in an interview with The Gold Report’s J.T. Long, the smaller junior gold miners may offer some value to savvy investors who would like to shy away from the major mining stocks. Here are a few of the juniors that Handwerger is focusing on, most of which are traded on the Canadian Venture Exchange:

  • Integra Gold Corp. (CVE:ICG) recently received $14 million in funding from one of the industry leaders, Eldorado Gold (NYSE:EGO; TSX:ELD).
  • Pershing Gold Corp. (NASDAQ:PGLC) was just uplisted onto the Nasdaq, and is reportedly drilling at a frenetic pace.
  • Corvus Gold Inc. (TSX:KOR) has similar big-name backing, as two of its largest shareholders are AngloGold Ashanti Ltd. (NYSE:AU; ASX:AGG; JSE:ANG) and Tocqueville Gold Fund (a major gold-backed mutual fund).
  • NuLegacy Gold Corporation (TSX:NUG) is looking to extend its partnership with major miner Barrick Gold (NYSE, TSX:ABX) at its projects in Nevada.
  • Red Eagle Mining Corp. (CVE:RD) has ventured into Colombia’s Medellin region, the first new mine the Colombian government has allowed in the country since the mid-1990s.
  • Carlisle Goldfields Ltd. (TSX:CGJ) also has the financial backing of a larger firm, Alamos Gold Inc. (TSX:AGI), cited as an especially encouraging sign for future growth.

Micro Miners

gold-in-flask-wikimediaFor those who are even looking beyond the major and junior miners for value in the mining sector, there are also several “micro miners” that trade for well under $1 per share. These firms may have modest market capitalization and are relatively unknown, but are low-risk and could provide value on a long-term timeline.

Columbus Gold Corp (CVE:CGT): 38¢ per share
Nevada Sunrise Gold (CVE:NEV): 19¢ per share
Scorpio Gold Corp (CVE:SGN): 9¢ per share
Tyhee Gold Corp (CVE:TDC): 1¢ per share
Plato Gold Corp (CVE:PGC): 1¢ per share

 

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.