There are a host of reasons why mining penny stocks will outperform the market. Much of this was evident in the previous year when gold and silver stocks skyrocketed in value. It all began with the pandemic at the beginning of 2020. The value of the dollar plummeted, causing the stock prices of numerous mining companies to rise. This is because when the economy was terrible, investors turned to physical assets like gold. Now in 2021, there is still a lot of market volatility that is impacting mining penny stocks.
But what about people who don’t want to physically hold gold or silver but yet want to invest in the sector? This is where mining stocks come into the picture. Those who do not want to possess these assets physically can invest in mining stocks. Several mining stocks have seen rapid increases in value over the last year.
However, gold and silver mining equities are not the only ones available on the market. Lithium stocks, for example, have risen dramatically since the beginning of 2020. Electric vehicles are to blame for most of this momentum. Lithium-ion batteries are used in all production electric vehicles. As you may be aware, this is a rapidly expanding market. This is the same reason copper is performing so well right now. Most if not all electric vehicles include hundreds of pounds of copper. Steel stocks, uranium, and a variety of other commodities are also available. Let’s take a look at three mining penny stocks that are currently performing well in the market.Top Mining Penny Stocks To WatchDenison Mines Corp. (NYSE: DNN)
Denison Mines Corp. is a Canadian mining company that searches for uranium. In the Athabasca Basin region of northern Saskatchewan, the development business owns a 95 percent stake in its flagship Wheeler River uranium project. DNN has seen several large-scale rises and drops in the market during the previous six months.
The company declared at the end of last month that it has engaged in an equity distribution arrangement. This deal with Cantor Fitzgerald and Scotia Capital to provide an at-the-market offering. Denison will be able to offer and sell securities in Canada and the United States through these businesses, using the facilities of the Toronto Stock Exchange or the NYSE American. The total selling price for the number of common shares sold might be up to USD 50 million.
Any revenues from the at-the-market sale will be used to fund the company’s mineral property appraisal and project engineering efforts. It also intends to use the funds for long-term construction projects as well as other corporate and administrative needs. Up 4.38% in the market on October 11th, will DNN be on your list of mining penny stocks to watch?New Gold Inc. (NYSE: NGD)
Due to its market momentum, New Gold Inc. is a mining stock that is frequently mentioned on this site. This is a firm that is actively developing and operating a number of mineral properties. New Gold primarily looks for gold, silver, and copper deposits at its properties, all of which are in the United States. The Rainy River and New Afton mines are New Gold’s main assets.
It revised its operational outlook for fiscal 2021 earlier this month. New Gold expects to produce between 405,000 and 450,000 ounces of consolidated gold equivalent at its Rainy River mine, up from 440,000-490,000 ounces before. As a result of this occurrence, the company’s guidance numbers have dipped marginally.
President and CEO Renaud Adams said, “While the reduction in our near-term guidance at Rainy River is unfortunate, I remain confident the mine has reached an inflection point, as evidenced by the free cash flow generated in the second quarter and the mine is on track to deliver an improved second half of the year.” NGD stock has gone up in price over the last 5 trading days. Will NGD stock make it onto your October watchlist?Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is a mining penny stock that has recently increased in value. This is a corporation that focuses largely on gold exploration, discovery, and mining. Yamana’s mines also look for silver, in addition to gold. The company’s headquarters are all throughout the Americas, including Canada and Brazil.
Yamana has announced promising exploration results at its operating mines. For all of its actions, it selected new zones and targets. In addition, the company recently released preliminary exploration drill findings from its Wasamac project. Now the company intends on providing its third-quarter results after the market closes on October 28th, 2021. Yamana will also provide an operational update on the same date, and hold a conference call the next morning. Ahead of these financial results, will AUY be on your mining penny stock watchlist?Hot Mining Stocks To Buy?
Searching for hot mining stocks to buy can often be a confusing process. This is due to the fact that the world is in a constant state of change as a result of the pandemic and economy. What we do know is that there are current concerns about inflation in the United States. It’s probable that material prices will rise if the dollar crashes again. This could help mining equities perform better as a result. But, for the time being, which firms will you add to your mining stock watchlist?