Gold price may be struggling to gain momentum Monday morning due to weak US manufacturing to date, but the market is still hot, and there are still plenty of gold penny stocks worth looking at this month.
On Monday, the Institute for Supply Management (ISM) said that its Purchasing Managers Index rose to 43.1%, which is up from April’s 41.5%, but slightly worse than the expected 43.5%.
Gold future prices dropped sharply on initial reaction to the data with August gold futures last trading at $1,742.50 an ounce, representing a 0.53% drop.
Despite the slight decrease in gold prices, analysts at the Bank of America see the price of gold hitting a record high of $3,000 in the next 18 months.
With ongoing uncertainty surrounding the reopening of economies around the world, investors will likely continue flocking to the safe-haven metal in a bid to protect their portfolios.
With that in mind, here are three red hot gold penny stocks under $5 to consider this month.
3 Gold Penny Stocks to Buy: New Gold Inc. (TSX:NGD) (NYSEAMERICAN:NGD)
First on the list of hot gold penny stocks to buy in June is New Gold Inc., a Canadian miner that owns and operates the New Afton gold-silver-copper mine in British Columbia and the Rainy River gold-silver mine in Ontario.
After experiencing a significant drop at the beginning of March, which sent the stock down to a low of $0.39, NGD stock has continued to climb back towards its 52-week high.
On April 29, New Gold Inc. reported its Q1 2020 financial results, which showed a decrease in both production and revenue for the quarter. Luckily, the loss hasn’t curbed investor interest in NGD stock, with daily trading volume consistently surpassing 3 million shares.
>> 3 High Volume Penny Stocks to Watch
Although the company faced a setback due to the temporary suspension at Rainy River, the close of a strategic $300 million partnership with the Ontario Teachers’ Pension Plan gives the company a strong liquidity position of $600 million, which is “more than adequate to fund our business during this COVID-19 period.”
On Monday, NGD stock increased by 1.65% to close at $1.23 and is up 36.6% since the beginning of 2020.
3 Gold Penny Stocks to Buy: IAMGOLD Corporation (TSX:IMG) (NYSE:IAG)
Next on the list of red hot gold penny stocks to buy in June is IAMGOLD Corporation, a gold miner with four operating gold mines on three continents.
IAG stock was up 2.41% to $3.83 on Monday after entering into an agreement with Monarch Gold Corporation (TSX:MQR) (OTCPK:MRQRF) for the sale of the Fayolle property. The Fayolle property consists of 39 mineral claims covering an area of 1,373 hectares in Quebec.
According to the agreement, IAMGOLD will pay Monarch a total amount of $11.5 million through the issuance of common shares of IAMGOLD to Monarch for a total value of $9.7 million based on a 10-day volume-weighted average price (VWAP) on the TSX preceding today’s announcement; a $300,000 cash payment upon transfer of ownership; and a $1.5 million cash payment 90 days after the initial transport of ore from the Fayolle deposit.
The recent uptick has sent IAG stock above some analysts’ price targets, but a handful of them see the company reaching new highs in the next 12 months. Raymond James expects the share price to increase to $4, Canaccord Genuity sees IAMGOLD stock hitting $4.75 in the next 12 months, and Stifel Nicolaus has given the stock a 12-month price target of $5.75.
IAMGOLD has a market cap of $1.76 billion, with 470,900,000 shares issued.
3 Gold Penny Stocks to Buy: Harmony Gold Mining Company Ltd (NYSE:HMY)
Third on the list of hot gold penny stocks is Harmony Gold Mining Company Ltd, a world-class gold mining and exploration company with operations and assets in South Africa and Papua New Guinea.
After experiencing a steep drop in value in March, HMY stock is back over the $3 mark after announcing its plan to raise up to $200 million via a share issue to help fund part of its purchase of AngloGold Ashanti’s last remaining assets in South Africa.
The purchase of AngloGold Ashanti’s properties would make Harmony the largest gold producer in South Africa. It will also help Harmony bounce back after its mining operations faced a five-week lockdown to curb the spread of the coronavirus.
Luckily, mines were allowed to restart operations with 50% of their workforce as of May 1, meaning the company may be able to ramp up its gold production in the second half of the year.
Harmony Gold Mining closed up 2.4% at $3.41 on the NYSE. The company has a market cap of $1.8 billion, with 542,718,000 shares issued.
Takeaway
It’s no secret that the gold market is hot right now, but many investors are missing out on hot gold penny stocks by focusing their attention on industry giants and physical gold purchases.
While there are several ways to get in on the gold market, including gold exchange-traded funds (ETFs) or physical gold bars, gold penny stocks can offer the greatest upside when chosen wisely.
Are there any gold penny stocks on your radar? Tell us about them in the comments!
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