How Did These Stock Picks Do In 2020?
When it comes to looking back on 2020 most people will be glad to see this year in a rear view mirror. What started off like normal didn't last too long when the world found out about the covid virus. Society around the world came to a stand still. Business's closed down and millions of workers were displaced and in fact millions still are. On the news there was and still is tons of chatter about a depression that will happen because of this situation. But for gold bugs and the junior mining sector, 2020 was a year of boom times. Some folks out there make a fortune in mining stocks and in my opinion this bull market rally in metals and mining stocks has just gotten started.
In March when global stock markets took a tumble it took down litterly everything. Even today 7-8 months later there are still piles of stocks out there that have yet to return to their respective highs. However early summer rolled around and gold and silver prices took off with gold hitting new historic highs over $2000 US per oz. This rally of course took some junior stocks to new all times also with the market seeing some mining shares giving investors anywhere from 100% - 900% gains in short order.
Some of the stocks we followed and wrote about did exceptionally well. Our favorite play this year was and still is Skeena Resources TSX-SKE. Skeena is drilling in the Golden Triangle in northern BC and because of the exceptional drill results that keep coming in the company is going full tilt with upwards of 12 rigs. Early in the year you could have bought the stock in the 50 cent range. Infact after the March crash the stock fell back to the 50's but has since rallied to $3.00 giving long investors a 600% return. In my opinion there is still a whole lot of upside here as this resource just keeps getting bigger and grades keep getting richer all the time.
The second company we wrote about was Benchmark Metals TSX-V:BNCH. Benchmark had a very active summer drill program of 100,000 meters east of the Golden Triangle and that was one of the reasons we started to follow this play. At the early start the stock price was still in the 30 cent range and as summer progressed and news was released the stock climbed to a high of $1.60 giving early investors a healthy 500% gain. The stock has settle back with a 30% retracement and is now in trading sideways in the $1-1.20 range.
In late May of this year we wrote about silver miner Vizsla Resources TSX:V-VZLA that had some good prospects down in Mexico. At the time the stock price was 50 cents and within a month the stock was flirting with the $3.00 region. This miner gave investors a real quick 600% for those who would have held from bottom to top. Even for those who maybe got in early spring are still up a tidy 100% plus.
Not all of the juniors we followed did well. In early spring we took a look at Strategic Metals Ltd TSX-V:SMD. At that time the stock was in the 30 cent range and the company was talking about their up coming summer drill program at Mt Hinton in the Keno mining district of Yukon. The stock climb all summer and things looked promising but by mid November when news was finally issued about assays and after gold prices had slumped into fall, the stock took a hit. This is the perfect example of how thing can go wrong when maybe drill results are not up to market expectations.
Another not so well performer was the small junior Enduro Metals TSX-V:ENDR that was actually a real disappointment. The company at the time was named Clear Lake Mining but did a name change to Enduro. We started to follow the company in early spring mostly do to the reason because of their proximity to Skeena Resources. At the time the stock price was a mere 18 cents and throughout the summer it rallied to the 30 cent area. In my opinion the company started too late in the season with it's drill program with not a lot of meters of drilling. The stock today is right back down to 18 cents and will most likely fall even further throughout the winter months.
A new miner to the public this year was New Found Gold TSX-V:NFG. The company never became public until August. I had heard about this IPO because of different mailings I get all the time so as usual I was very earger to check it out and once it became public there was the usual wait and see game before making a decision. I started following this play in earnest after a few weeks of trading and it has not dissappointed investors to this date. This company has a massive drill program and lot of property to explore and the grades so far as quite impressive.
Well that wraps up the stocks I followed this year. Another small company was Falcon Gold TSX-V:FG was bought and sold however if this stock was held from the 6 cent area it would have given the investor a rather quick 200% gain. YOu win some and loose some. Maybe next year 2021 will be just as spectacular for mining stock investors.
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