Mining Penny Stocks Down on the TSX—Why?

Penny stocks

Mining penny stocks have been put on the backburner lately since cannabis emerged as the ‘hot’ stock sector this year. And last year, mining was overshadowed by blockchain technology stocks.

Let’s take a look at two mining penny stocks that have fallen on the TSX today.

RNC Minerals (TSX:RNX)

RNC Minerals is based out of Toronto, Ontario, and is a mineral resource company. The company mines for nickel, copper, cobalt, gold, and precious metal deposits. The company was formerly known as Royal Nickel Corporation but changed its name back in September of 2016.

The mining penny stock fell dramatically on the Toronto-based exchange. The last update given by the company was two days ago. RNC announced that its operations will now resume for its initial Father’s Day Vein discovery. This was a positive announcement for the company, but it didn’t seem to grow investors’ confidence.

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President and CEO of RNC, Mark Selby, said:

“With resumption of mining in the initial Father’s Day Vein development area later this week, we will add additional production to bring expected total gold production from this area to 30-35,000 ounces. The cash flow from the initial ounces processed to date has allowed RNC to repay all of its debt facilities and, once the remaining gold shipments have been processed, will put the company into a substantial net cash position.”

According to Yahoo Finance, the mining penny stock is trading at $0.75 a share, down -$0.07 (-8.54%).

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Coro Mining Corp. (TSX:COP)

Coro Mining is based out of Vancouver, Canada, and engages in the acquisition, exploration, and exploitation of mineral properties and projects located within Latin America. The company mines for copper, gold, iron ore, and other base and precious metals.

The company released its latest announcement eight days ago. The mining company announced it had completed a $33.5 million rights offering. 

According to Yahoo Finance, the mining penny stock is dropping sharply on the market today. At the time of writing, COP shares are trading at $0.055, down -8.33% from yesterday’s close.

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