Argonaut Gold (TSX:AR) is a Canadian gold miner with projects in Canada and Mexico. Shares of Argonaut Gold have surged 35.7% over the past month. The stock is still down 34% year over year.
Gold miners have benefited from the rise in the spot price of gold over the past several months. The yellow metal has seen its U.S. dollar price rise to nearly $1,300 as of this writing. This is compared to a price below $1,200 in the early fall. Slowing global growth, severe market turbulence, and the potential of a pause on rate hikes have all been positive for gold price action in late 2018 and early 2019.
In the first nine months of 2018 Argonaut Gold reported gold equivalent ounces produced of 113,459, which was up 24% from the same time in 2017. Revenues also rose 25% to $144.4 million. The company has performed well under less-than-stellar conditions for gold’s base price.
If the yellow metal can sustain its momentum throughout 2019 Argonaut Gold stock could quickly rise back to highs it reached in 2016 at the height of the short gold bull market.
The average realized sales price per ounce was $1,212 in the third quarter of 2018. The dash into the safe-haven could propel the spot price further upward going forward. In any case, Argonaut’s Q4 report should reflect a friendlier environment.
Gold equities have been one of the few bright spots in late 2018 and early 2019. Argonaut Gold is a great value pick for those looking to dive into the sector this month.
