The Newcrest Mining Limited (ASX: NCM) share price climbed 2.3% higher yesterday to close the day trading at $33.92, inching closer to its 52-week high of $40.01. So why are the ASX miners surging higher this year?
What's driving the ASX mining share price boom?
Newcrest is far from the only ASX mining company to see its share price rocket higher so far this year, with Resolute Mining Limited (ASX: RSG) and Regis Resources Ltd (ASX: RRL) also seeing significant share price gains across the first half of the year.
The Resolute share price closed 4.6% higher at $1.82 per share yesterday, after the Aussie miner announced a major gold resource and reserve upgrade for its Ravenswood mine before the market opened.
Resolute said mineral resources were up 24% to 5.9 million ounces and ore reserves had increased 58% to 2.7 million ounces, resulting in the addition of 1 million reserve ounces from its Ravenswood Gold Mine.
All of the Aussie gold miners have been buoyed by ongoing uncertainty in global geopolitics and the respective interest rate decisions by both the United States Federal Reserve and the Reserve Bank of Australia.
Domestic equities have enjoyed their best start to the year since 1991 and the recent decision to cut interest rates by 50 basis points (bps) has pushed more asset allocations away from low-yielding fixed income and into equities, driving share prices higher still.
Gold prices have been on the rebound amid the ongoing US–China trade war and tensions with Iran and the Aussie gold miners have cashed in, with revenues climbing and production remaining steady.
Is there still time to buy the ASX mining stocks?
Given the way that gold prices have been trending and the political uncertainty we're facing in the second half of the year, I wouldn't be surprised to see further capital gains in these 3 ASX mining stocks.
Newcrest has been one of the top performers in the S&P/ASX 200 (INDEXASX: XJO) index so far this year with its share price climbing 56.2% higher since the start of January.
While most ASX companies remain in a sort of blackout period ahead of the August reporting season, I'd be seriously considering buying these stocks if production and cost numbers look positive in their full-year results.
