In the after-hours of trade yesterday, gold and precious metals companies have shown serious upward performance. Almaden Minerals Ltd. (NYSEAMERICAN: AAU) is one such example of an aftermarket mover that has picked up attention. AAU saw a persistent climb by 32.9% during the day, followed by an additional 16.1% in the after-hours. This strong bullish momentum follows through from the prior 3 weeks, which netted in a 60% gain till the present.
Market Rush to Safe-Haven Assets
The climb in AAU price comes alongside a broader growth spurt seen with gold and precious metal stocks. During times of economic uncertainty, traders tend to rush towards stable and valuable commodities such as gold or minerals. Given the global impacts of the Russia-Ukraine crisis and the potential for escalation, these commodities act as ideal safe-haven assets. The threat of a potential nuclear crisis further leads to investors looking towards safety cushions such as metal stocks.
AAU Stock’s high-rise trajectory has more to do than just global political turmoil and the offer for safe-haven assets. It further relates to a global reorientation of the commodities market, on account of economic sanctions on Russia. The price hike on these crucial assets further adds to global inflationary pressures. Firms such as Almaden Minerals, therefore, are a prime choice for investment given the uncertain circumstances of the surrounding market and industry.
AAU Prospects
Almaden Minerals in particular is especially well-suited to capture the opportunity presented, resulting in the share price climb. The company currently awaits approval from Mexico’s supreme court to initiate operations in Puebla State, after a crucial discovery. A feasibility report from 2018 pointed to probably 8.5 million ounces of silver, and 1.4 million ounces of gold. The project named the Ixtaca Silver-Gold Deposit offers high growth potential, whilst ensuring business sustainability amidst global economic uncertainties.
Chatter across social media surrounding AAU points to the level of interest the stock has currently attracted. Its trade volume of 1.6 million further attests to this hype, which has reeled in additional traders towards the stock.
Conclusion
The broader economic picture, tied along with AAU’s company-specific prospects have caused interest around the stock to spike. As trade continues into the after-hours and premarket, investors eye the bullish trajectory, with concern for geopolitical developments.
