Newcrest Mining share price falls after JV update

The Newcrest Mining Ltd (ASX: NCM) share price is falling lower in early trade after an update on its joint venture activities in WA.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Newcrest Mining Limited (ASX: NCM) share price is falling lower this morning after its latest joint venture (JV) update.

What did Newcrest Mining announce?

JV partner Encounter Resources Ltd (ASX: ENR) completed the first phase of reverse circulation (RC) drilling in the Tanama region of Western Australia.

The company announced that 17 RC drill holes were completed at the Hutch's Find site with assay results expected in November 2019.

The drilling is part of Newcrest's JV with the small-cap Aussie miner.

The project has now moved to its Afghan prospect with 12 RC holes on the cards to a planned depth of 300 metres.

Encounter and Newcrest expect the results from the Afghan drilling activities in December 2019.

What's the story with the JV?

Newcrest is the financial backer of Encounter Resources and its projects in Western Australia.

Newcrest announced earlier this year that it would be the sole financier with a large exploration tenure with Encounter.

The two Aussie resources companies are involved in several joint ventures across the state.

The Newcrest Mining share price will be one to watch in 2019, with assay results expected in November and December.

How has the Newcrest Mining share price performed in 2019?

The company's shares have been a strong performer so far this year.

The Newcrest Mining share price had climbed 48.13% year to date, prior to this morning's open. It has since pulled back slightly in morning trade to $31.97 per share.

However, Newcrest shares reached as high as $38.87 per share back in August. One big boost has been the US–China trade war escalation, which saw investors flock to gold assets.

The company's shares have also outperformed many of its ASX Metals & Mining sector peers in 2019 and the ASX 200 this year.

The S&P/ASX 200 Index (INDEXASX: XJO) had climbed 21.29% higher so far this year prior to this morning's strong open.

You might be interested in checking out these 3 things before you dive into Newcrest shares in 2019.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

A young woman holds onto her crown as another moves to take it, indicating rival ASX shares
Resources Shares

Is a royalty ruling a problem for Liontown shares?

Not the news investors were hoping for.

Read more »

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Resources Shares

Fortescue shares are galloping again as Twiggy stays confident in China's horsepower

It's business as usual for the miner despite Trump's promised 60% tariffs on Chinese imports.

Read more »

Miner standing at quarry looking upset
Resources Shares

This ASX All Ords mining stock sinks 13% after a rocky quarter

Investors continue unloading shares in the precious metals company.

Read more »

Miner looking at a tablet.
Resources Shares

Will ASIC make a dog's breakfast of Mineral Resources shares?

ASIC has now stuck the probe in to investigate.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Resources Shares

Should you buy Rio Tinto stock or Woodside stock today?

Which of these giants is best? Here's what Goldman thinks.

Read more »

Miner looking at a tablet.
Resources Shares

What does Trump's win mean for iron ore shares like Fortescue?

The controversy on tariffs has already started.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Own BHP shares? Directors of the mining giant have been busy with stock transactions

It can be worrying when directors sell.

Read more »

Buy, hold and sell ratings written on signs on a wooden pole.
Resources Shares

Are Lynas shares a buy, sell, or hold for 2025?

Much depends on the outlook for rare earths.

Read more »