The Newcrest Mining Limited (ASX: NCM) share price will be on watch today after an update from the company's joint venture (JV) partner.
Why could the announcement move the Newcrest share price?
Newcrest is the JV partner of Encounter Resources Ltd (ASX: ENR), an Aussie gold miner operating in Western Australia. Newcrest is sole funding the exploration activities across a series of JVs with Encounter.
Encounter this morning provided an update on its Mojave prospect and recent drilling activities in the Tanami region of Western Australia. The positive update could see the Newcrest share price move in early trade.
RC drilling is continuing at the Selby JV in conjunction with Newcrest. Encounter Managing Director Will Robinson said, "the drilling at Hutch's Find has successfully defined a broad corridor of bedrock gold anomalism that remains open."
Encounter has finished its Afghan drill program and commenced at Mojave to test down plunge of a 600 metre long gold and arsenic anomaly. Assay results from the Mojave project are expected in January 2020.
How have the company's shares performed in 2019?
The latest update from its JV partner will be welcome news for Newcrest and its shareholders.
The Newcrest share price is down 5.03% in the last month as the ASX 200 has fallen lower. However, the company's shares have still climbed an impressive 46.82% higher in the last year.
Encounter remains a micro-cap stock with a market capitalisation of under $40 million at the time of writing.
Newcrest has been a top ASX performer in 2019 as others have been hit hard by the ongoing US–China trade war.
Strong earnings and a supportive gold price have helped the Newcrest share price rocket higher in 2019.
Are there other good value miners on the ASX?
Newcrest is currently trading on a 29x earnings multiple with a market cap of $23.8 billion.
Fellow miner Saracen Mineral Holdings Ltd (ASX: SAR) trades at 26.7x earnings with a market cap of $2.5 billion.
