2 ASX gold mining shares to consider adding to your portfolio

Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are 2 ASX gold mining shares to consider as a hedge in your portfolio.

| 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

When analysing how your investment portfolio is constructed, it is always prudent to consider having a small percentage in companies that perform well in a bear market.  Gold mining companies typically outperform in this type of market.

Here are two ASX gold mining shares that I'd consider adding to your portfolio…

Newcrest Mining Limited (ASX: NCM)

Newcrest Mining Limited is the largest gold producer listed on the Australian Stock Exchange and one of the largest gold producers in the world.

The Newcrest share price has softened slightly since its results announcement on Thursday, with investors expecting a little bit more.  Underlying profit was up 104% to A$237 million on the back of strong gold production, while net debt reduced by 8%.

Newcrest's strategy is to continue growing through expanding its current mines and look for opportunity via mergers or acquisitions.  Along with this, there is a large focus on continued exploration and partnerships with explorers for new discoveries.

The Newcrest Mining share price is currently trading near its 52-week high on a P/E ratio of 29.

Northern Star Resources Ltd (ASX: NST)

Northern Star Resources Limited is another global-scale Australian gold producer with Tier-1 world-class projects located in Australia and North America.

The Northern Star share price has continued a stellar run after releasing positive results on Wednesday, with revenue up 43% from the previous corresponding period and underlying net profit after tax up 11%.  The result is even more impressive due to the record investment of A$83 million spent on exploration and expansionary capital, including A$10 million spent on the Pogo investment.

The strength of Northern Star's balance sheet allows for countercyclical acquisitions and sector-leading returns.  This is not a common luxury for many mining shares, which can be crippled during market downturns in commodity prices.

The Northern Star Resources share price currently is trading right near its 52-week high on a P/E ratio of 23.

Foolish Takeaway

Whilst mining companies come with their own inherent risks, Newcrest and Northern Star represent good options as a small hedge in your portfolio.  Both companies are trading near their 52-week highs so I'd consider waiting for a dip before buying in.

Motley Fool contributor Michael Guinery holds no position in any shares 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

Miner holding cash which represents dividends.
Dividend Investing

A 22% yield on Fortescue shares? Here's how these passive income investors achieved it!

Fortescue shares are popular among passive income investors for their juicy fully-franked dividends.

Read more »

Miner looking at a tablet.
Resources Shares

How global job cuts could boost the BHP share price

The mining giant is planning cost-cutting to help its profits.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

This ASX All Ords stock just surged 88% in less than 3 days! Any guesses?

The ASX All Ords stock is drawing intense buying interest from investors this week.

Read more »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
Resources Shares

How is the Fortescue share price down 3% today?

Shareholders should be cheering today's Fortescue losses.

Read more »

2 people at mining site, bhp share price, mining shares
Resources Shares

Why is the BHP share price trailing the ASX 200 on Tuesday?

BHP shares are underperforming the ASX 200 today.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

These ASX 200 mining stocks can deliver 20%+ returns

Analysts are tipping big returns from these miners.

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Alumina shares leap 8% on Alcoa takeover bid

ASX 200 investors are sending the Alumina share price soaring following confirmation of Alcoa’s takeover intentions.

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

Here's the BHP dividend forecast through to 2026

This miner is committed to paying appealing dividends.

Read more »