What happened to Mining Stocks since PDAC?

Mining stocks
Published on: June 1, 2020
Author: Gilbert Chan

After more than 2 months since the PDAC in Toronto, the last major mining conference before the lockdown, we take this opportunity to examine the performance of the mining stocks that were interviewed during the event.

The majority of the companies have enjoyed positive runs during the past 2 months for various reasons. Gold equities continue to lead the market but silver stocks are also starting to shine. Another bright spot in the metals market is uranium that, after long years of depressing runs, has seen its spot prices climb from the bottom. Supply shortage has been the story: The closure of the world’s biggest uranium mine, Cigar Lake of Cameco, Canada now only contributes 14 million pounds per year of supply. The effects on supply due to COVID-19 fears were seen with South Africa closing all of its mining operations and Namibia also reducing its supply.

Furthermore, Kazakhstan imposed restrictions due to the coronavirus outbreak. Kazatomprom, world’s largest producer and seller of uranium, anticipated that its 2020 output to be 16% less than the previous guidance for the year. The production amount equates to 10.4 million pounds, comparable to 8% of global supply. Due to the stance taken by the Kazakhstan government, uranium prices shot up to US$29.45/lb on 9 April 2020.

There was no coincidence that most of the Uranium stocks benefited from such developments. IsoEnergy, Blue Sky Uranium and Goviex all enjoyed over 40% gain in this time.

Company Exch. Symbol Project Location Metal Focus Stage 15-Mar 1-Jun  % 
Lomiko TSXV LMR Quebec Graphite, Lithium Explorer 0.03 0.035 16%
Sierra Metals TSX SMT Latin America Silver,Copper,Zinc Producer 1.17 1.12 -4.20%
Trilogy TSX TMQ Alaska Copper Developer 1.84 2.02 9.70%
Nouveau Monde  TSXV NOU Quebec Graphite Developer 0.185 0.2 8%
Goviex Uranium TSXV GXU Africa Uranium Explorer 0.1 0.14 40%
Frontier Lithium TSXV FL ON Lithium Explorer 0.185 0.24 29%
Clean Air Metals TSXV AIR Thunder Bay, ON PGE Explorer N/A 0.34 just listed
Golden Minerals TSX AUMN Mexico, Argentina Gold, Silver Explorer 0.23 0.54 135%
Avino Silver TSX ASM Mexico Silver Producer 0.41 1.1 168%
Minera Alamos TSXV MAI Mexico Gold Developer 0.2 0.43 115%
IsoEnergy TSXV ISO Saskatchewan Uranium Explorer 0.3 0.69 130%
Blue Sky Uranium TSXV BSK Argentina Uranium Explorer 0.055 0.155 182%
Golden Arrow TSXV GRG Chile, Argentina Gold, Silver Explorer 0.1 0.155 55%
First Vanadium TSXV FVAN Nevada, Arizona Vanadium, Gold Explorer 0.125 0.185 48%
NewRange TSXV NRG Nevada Gold Explorer 0.09 0.17 89%
Westhaven TSXV WHN Merritt, BC Gold Explorer 0.445 0.75 69%
Vizsla Resources TSXV VZLA Mexico Gold, Silver Explorer 0.295 0.48 63%
Murchison  TSXV MUR Saskatchewan Base metals Explorer 0.09 0.8 789%
Copper Fox  TSXV CUU BC, Arizona Copper Developer 0.06 0.09 50%
Sokoman TSXV SIC Newfoundland Gold Explorer 0.07 0.11 57%
Imperial Mining TSXV IPG Quebec Copper, Zn Explorer 0.05 0.045 -10%
Scottie TSXV SCOT Golden Triangle, BC Gold Explorer 0.13 0.265 104%
Renforth  CSE RFR Quebec Gold Explorer 0.035 0.04 14%
Klondike Gold TSXV KG Yukon Gold Explorer 0.2 0.29 45%
Braveheart TSXV BHT BC Gold, Copper Explorer 0.085 0.055 -35%

With smart money flowing back to the gold & silver sectors, the juniors are starting to benefit now after the producers. Westhaven (TSXV:WHN) put out strong results recently and continued drilling, making it one promising explorer in the Yukon.

Minera Alamos (TSXV:MAI) is making steady progress towards production, the company has been revalued and thus had a very positive return at more than double.

One special note on the company Clean Air Metals, (TSXV:AIR) which started trading recently, the company has been building up a lot of interest because of its strong management team.  It raised $15M back in February in order to look for PGE, Copper and Nickel in Thunder Bay, a region that is famous for its mining and exploration history.

With most mining stocks starting to take off, the metals market is shaping to be very profitable for investors while the majority of the economy is still in recession.

Base Metals Copper Energy Metals Gold Industrial Metals Mining Nickel Precious Metals Silver Uranium