What happened to Mining Stocks since PDAC?

Brigadier Gold 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.

CompanyExch.SymbolProject LocationMetal FocusStage15-Mar1-Jun % 
LomikoTSXVLMRQuebecGraphite, LithiumExplorer0.030.03516%
Sierra MetalsTSXSMTLatin AmericaSilver,Copper,ZincProducer1.171.12-4.20%
Nouveau Monde TSXVNOUQuebecGraphiteDeveloper0.1850.28%
Goviex UraniumTSXVGXUAfricaUraniumExplorer0.10.1440%
Frontier LithiumTSXVFLONLithiumExplorer0.1850.2429%
Clean Air MetalsTSXVAIRThunder Bay, ONPGEExplorerN/A0.34just listed
Golden MineralsTSXAUMNMexico, ArgentinaGold, SilverExplorer0.230.54135%
Avino SilverTSXASMMexicoSilverProducer0.411.1168%
Minera AlamosTSXVMAIMexicoGoldDeveloper0.20.43115%
Blue Sky UraniumTSXVBSKArgentinaUraniumExplorer0.0550.155182%
Golden ArrowTSXVGRGChile, ArgentinaGold, SilverExplorer0.10.15555%
First VanadiumTSXVFVANNevada, ArizonaVanadium, GoldExplorer0.1250.18548%
WesthavenTSXVWHNMerritt, BCGoldExplorer0.4450.7569%
Vizsla ResourcesTSXVVZLAMexicoGold, SilverExplorer0.2950.4863%
Murchison TSXVMURSaskatchewanBase metalsExplorer0.090.8789%
Copper Fox TSXVCUUBC, ArizonaCopperDeveloper0.060.0950%
Imperial MiningTSXVIPGQuebecCopper, ZnExplorer0.050.045-10%
ScottieTSXVSCOTGolden Triangle, BCGoldExplorer0.130.265104%
Renforth CSERFRQuebecGoldExplorer0.0350.0414%
Klondike GoldTSXVKGYukonGoldExplorer0.20.2945%
BraveheartTSXVBHTBCGold, CopperExplorer0.0850.055-35%

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

Gilbert Chan

President, NAI Interactive Ltd.

Gilbert has over 19 years of experience in the investor relations industry with a focus on natural resources. In addition, Gilbert has established a broad network of business relationships within the financial and investment communities in both North America and China. Gilbert's expertise and experience has led to a strong following in the Chinese speaking investor community in Canada. In recent years, Gilbert has become frequent speaker and interviewee on mining topics for numerous media outlets, including the Financial Post, Wall Street Journal, Vancouver Sun, OMNI TV, and other industry publications.