On Wednesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) pushed higher again and finished the day up 0.35% at 6,026.1 points.
This latest gain means the benchmark index has now put on a gain of over 6.5% since the start of the year.
Whilst this is excellent, some shares have managed to carve out even stronger gains. In fact, three of Australia's most well-known miners have been on fire in 2019 and each hit 52-week highs on Wednesday.
Is it too late to buy their shares?
The BHP Group Ltd (ASX: BHP) share price climbed to a 52-week high of $36.00 today, stretching its year to date gain to 10%. This return does not include the ~$1.41 per share special dividend which was paid to shareholders last week. While I think this gain means BHP's shares are approaching fair value now, I still believe they are a great option for income investors. Due to the high levels of free cash flow being generated by its operations, favourable commodity moves, and robust balance sheet, I believe management are likely to return a good portion of its profits to shareholders in the form of dividends and buybacks in the coming years.
The Fortescue Metals Group Limited (ASX: FMG) share price continued its impressive run and reached a 52-week high of $6.13 on Wednesday. This gain brought the iron ore producer's 2019 gain to a staggering 45%, making Fortescue the best performing share on the ASX 200 this year just ahead of Afterpay Touch Group Ltd (ASX: APT). As a pure play iron ore producer, Fortescue's shares will tend to move in line with the iron ore price. And with Vale potentially withdrawing a significant amount of supply from the market following the dam disaster in Brazil, things look very favourable for Fortescue right now. However, I feel its shares are now fair value and low grade iron ore prices would need to go notably higher from here for me to consider picking up shares.
The Rio Tinto Limited (ASX: RIO) share price hit a 52-week high of $91.09 today. This gain brought the mining giant's year to date gain to a sizeable 16%. As with Fortescue, investors have been buying Rio Tinto's shares after iron ore prices surged higher. If iron ore prices remain elevated over the medium term, then I believe Rio Tinto is perfectly positioned to deliver a bumper profit result in FY 2019. This could make it worth considering if you're looking for exposure to the resources sector, especially given the prospect of capital management due to its strong free cash flows and balance sheet.
