The Newcrest Mining Ltd (ASX: NCM) share price closed 3.08% higher at $35.13 per share to be a top performer amongst the S&P/ASX 200 (INDEXASX: XJO) and set a new 52-week high.
So, why is the Aussie gold and copper mining stock so hot right now and what lies ahead in the company's August results release?
Why the Newcrest share price climbed higher yesterday
The big factor driving the Newcrest share price higher yesterday was an update from its joint venture (JV) partner, Encounter Resources Ltd. (ASX: ENR).
Newcrest is sole funding exploration activities across a series of JVs in the Tanami and West Arunta provinces in Western Australia, with the exploration activity expected to be completed between August and November 2019.
The 12-month alliance between the two companies was formed in July 2017 to cover these regions, which ultimately resulted in Newcrest and Encounter entering JVs covering 4,400 square kilometres in the first year.
The two companies subsequently extended the agreement for an additional 12 months and this resulted in an additional 1,500 being added to the JVs in March 2019.
According to the release, with project generation activities complete and multiple large JVs established, Newcrest and Encounter are focusing on progressing the planned exploration programs targeting Tier 1 gold and copper-gold mineral deposits.
Can the Newcrest share price surge even higher?
Following the Encounter update, the Newcrest share price climbed 3.08% to market close to be among the top performers within the ASX 200 and set a new 52-week high watermark.
The Newcrest share price has continued to perform strongly in 2019 and is currently up over 60% for the year, even while most of its Resources sector peers have struggled to stay in the black.
The company recently reported its Q4 2019 quarterly results and reported strong gold and copper production increases and a record low all-in sustaining cost (AISC) for the quarter.
In terms of the quarterly results, gold production climbed 6% quarter on quarter to 661 koz, while copper production similarly climbed 14% to 29kt, up 14% from the March 2019 quarter.
In line with the group's full-year results, the group's quarterly AISC fell $18 per ounce to $720 per ounce while its AISC margin rose $26 per ounce compared to the March 2019 quarter.
I'd personally be waiting until after I see Newcrest's full-year 2019 results in August before making a decision on whether to buy and hold the stock long-term.
