This stock has surged off the March lows and looks poised to move even higher. Eldorado Gold Corp. (NYSE: EGO) engages in the exploration, discovery, acquisition, financing, development, production, sale and reclamation of mineral products, primarily in Turkey, Canada, Greece, Brazil and Romania.
The company primarily produces gold, as well as silver, lead, zinc and iron ore. It operates five mines. Kisladag and Efemcukuru are located in western Turkey, Lamaque in Canada, and Olympias and Stratoni located in northern Greece.
The $13 BofA Securities price objective was raised to $15. The posted consensus target of $1.98 is questionable, given that Eldorado Gold stock closed at $10.05 on Wednesday.
Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration and development of gold properties, principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
Kinross Gold is also involved in the extraction and processing of gold-containing ores, reclamation of gold-mining properties and the production and sale of silver. As of December 31, 2019, its proven and probable mineral reserves included approximately 24.3 million ounces of gold and 55.7 million ounces of silver.
BofA Securities has a new $15 price target, up from $8.90. The consensus target is $9.80, and Wednesday saw a closing price of $12.71 for Kinross Gold stock.
Wheaton Precious Metals
This precious metals royalty stock makes good sense for more conservative accounts looking to have exposure to the sector. Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.
Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, the Lundin Mining Zinkgruvan mine in Sweden, and Glencore’s Antamina and Yauliyacu mines in Peru, then sells the silver and gold into the open market.
Last December the company announced it had reached a favorable settlement with the Canada Revenue Agency with respect to the 2005 to 2010 tax years. Wheaton now anticipates that there will be no additional cash taxes for those years for its international subsidiary. This tax case had depressed the valuation and should help the shares continue to move higher.
Holders of Wheaton Precious Metals stock receive a 0.71% dividend. The BofA Securities price target jumped from $47.00 to a whopping $64.50. The consensus target is down at $51, below Wednesday’s close at $56.21 a share.
As we mentioned at the beginning of this post, proper asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only do they hedge inflation over the long term, but they really can help if the market goes into correction or bear market mode, as they tend to trade inverse to markets.
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