8 Reasons To Be Bullish On Gold and Silver Mining Stocks

Bullish sentiment is surrounding Gold & Silver Mining Stocks as the Gold spot price hit a YTD high yesterday of $1,789.50. Yet penny stock North Springs Resources (OTC: NSRS), which has been reporting daily on gold and silver finds globally, flamed out crashing further from its $1.72 high just weeks ago down to $0.236.

It seems not only has Harry Lappa, CEO of NSRS, made headlines with the penny stock press releases that are selectively issued daily, but also in a small local news paper with ties to Mr. Lappa. The writers appear to have done their due diligence as should have the investors who got burned on NSRS.

Regardless of the NSRS scam, Gold is heading towards the $2,000 level that analysts predicted and we at AimHighProfits have taken notice of some of the Gold and Silver Mining Stocks which are currently bullish having  created the Golden Cross on their 50 and 200-day moving averages. Many of the stocks we tracked are barely over their 52-week lows.

Here are 8 reasons to be bullish about gold and silver mining stocks:

1) Kinross Gold Corporation (NYSE: KGC) is so hot right now, it’s smoking. With investor lawsuits hanging over them for failure to deliver profits after missing on estimates, revenues and EPS expectations, KGC is trading some serious volume currently. KGC closed Thursday, February 23, 2012 was $11.41   ($10.31 on Feb. 15th), down -1.13% (-0.13). KGC is trading:

  • $6.84 below its 52-week high: $18.25
  • $1.45 above its 52-week low: $9.96
  • 1.12% above its 50-day Moving Average: 11.28
  • -17.22% below its 200-day Moving Average: 13.78

2) Eldorado Gold Corp. (NYSE: EGO) was awarded approval this week to inspect the Perama Hill Gold Deposit in Thrace, Northern Greece which has proven and probable gold reserves of 975 thousand ounces which would cost EGO around $300 per ounce to produce. EGO closed Thursday, February 23, 2012 at $14.88, up 0.74% (+0.11). EGO is trading:

  • $7.24 below its 52-week high: $22.12
  • $2.04 above its 52-week low: $12.84
  • 4.83% above its 50-day Moving Average: 14.19
  • -12.16% below its 200-day Moving Average: 16.94

3) IAMGOLD Corp. (NYSE: IAG) reported record revenues of $1.7 Billion on an average gold price of $1,555 per ounce. Earnings more than doubled compared to 2010. With increases in dividends announced in June and December 2011, IAG’s dividend payment for the year was $0.25 per share, a 317% increase over the payout rate at the beginning of 2010. IAG closed Thursday, February 23, 2012 at $17.45, up 0.52% (+0.09). IAG is trading:

  • $6.43 below its 52-week high: $23.88
  • $2.76 above its 52-week low: $14.69
  • 4.83% above its 50-day Moving Average: 14.19
  • -12.16% below its 200-day Moving Average: 16.94

4) Allied Nevada Gold Corp. (NYSE: ANV) last night reported successfully upgrading 93.3 million ounces of silver and 2.5 million ounces of gold to the proven and probable mineral reserve categories. Total proven and probable mineral reserves on December 31, 2011 were 481.9 million ounces of silver and 12.7 million ounces of gold. ANV closed Thursday, February 23, 2012 at $34.84, up 1.28% (+0.44). ANV is trading:

  • $11.06 below its 52-week high: $45.90
  • $6.31 above its 52-week low: $28.53
  • 2.70% above its 50-day Moving Average: 33.92
  • -3.73% below its 200-day Moving Average: 36.19

5) Pan American Silver Corp. (NASDAQ: PAAS) posted record financial results yesterday of:

  • Silver production of 21.9 million ounces
  • Gold production of 78,426 ounces
  • Cash costs of $9.44 per ounce of silver, net of by-product credits
  • Record mine operating earnings of $409.1 million
  • Record net earnings of $354.1 million/$3.31 per share
  • Record adjusted earnings of $252.3 million/$2.37 per share
  • Record cash flow from operations before changes in working capital of $347.4 million/$3.26 per share
  • Record revenue of $855.3 million

PAAS closed Thursday, February 23, 2012 at $25.85, up 2.70% (+0.68). PAASis trading:

  • $17.21 below its 52-week high: $43.06
  • $5.92 above its 52-week low: $19.93
  • 9.13% above its 50-day Moving Average: 23.69
  • -2.89% below its 200-day Moving Average: 26.62

Pan American Silver Corporation announced Monday, January 23, 2012, they agreed to acquire Minefinders Corp. in a cash and stock deal valued at $1.49B making them the world’s leader in silver production.

6) AuRico Gold, Inc. (NYSE: AUQ) reported that production would double year-on-year in 2012 to between 540,000 and 600,000 gold equivalent ounces thanks to its C$1.46-billion October acquisition of Northgate Minerals. AUQ closed Thursday, February 23, 2012 at $9.65, up 2.22% (+0.21). AUQis trading:

  • $4.52 below its 52-week high: $14.17
  • $2.37 above its 52-week low: $7.28
  • 6.79% above its 50-day Moving Average: 9.04
  • -3.41% below its 200-day Moving Average: 9.99

7) Hecla Mining Co. (NYSE: HL) generated $477.6 million in revenue from 9.5 million ounces of silver produced during 2011 and enjoyed a gorgeous net profit margin of 31.5% as reported earlier this week. HL closed Thursday, February 23, 2012 at $5.46, up 0.55% (+0.03). > HLis trading:

  • $5.62 below its 52-week high: $11.08
  • $1.21 above its 52-week low: $4.25
  • 5.98% above its 50-day Moving Average: 6.05
  • -9.72% below its 200-day Moving Average: 5.15

Since the feature on Hecla Mining Co. , Lucky Friday mine’s main shaft was closed until end of 2012 due to an incident which occurred in December, 2011. The forecast for Hecla Mining Co. has been reduced considerably for their silver output this year.

8) Silver Standard Resources, Inc. (NASDAQ: SSRI) was the only primary silver producer reporting earnings recently to end 2011 with a lower per-ounce reserve valuation (currently $5.52 per ounce). SSRI closed Thursday, February 23, 2012 at $17.17, up 2.69% (+0.45). SSRIis trading:

  • $18.77 below its 52-week high: $35.94
  • $4.78 above its 52-week low: $12.39
  • 5.52% above its 50-day Moving Average: 16.27
  • -9.04% below its 200-day Moving Average: 18.88

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