The Fortescue Metals Group Limited (ASX: FMG) share price is one of the top performers within the S&P/ASX 200 (INDEXASX: XJO) index so far in 2019, surging 130% higher YTD – but I think it could go even higher.
The ASX gold miners have generally performed well in 2019 amid a risk-off tone and fears of a global growth slowdown, but how has Fortescue managed to outperform this year and lead the ASX gold mining share price explosion?
Strong half-year results set the platform for growth
The Fortescue share price is currently trading at $9.20 per share after touching a new 52-week high of $9.55 per share in early trade.
One big factor in this continued upwards momentum was Fortescue's half-yearly results in February which reported strong profitability and operational results across the board.
In its February half-year results, Fortescue reported US$644 million (A$942 million) in net profit after tax and US$1.6 billion (A$2.34 billion) in underlying earnings before interest, tax, depreciation and amortisation (EBITDA).
Resources rebound helps Fortescue share price soar
Fortescue is also a big iron ore producer and its share price growth has been helped by the global resources rebound with iron ore prices returning to US$110 per tonne in 2019 for the first time in half a decade.
A shutdown of the Vale SA site in Brazil following its recent disaster, coupled with strong Chinese demand levels, has boosted iron ore prices while gold has also pushed higher on geopolitical concerns and a sputtering global economy.
Gold prices have climbed 11% so far this year and could be set to touch a 6-year high with the ongoing US–China trade war and a shaky outlook for global growth in the short- to medium-term.
Should you buy Fortescue shares?
Fortescue has continued to outperform in 2019 and its 120% share price increase puts it in the same echelon as the likes of Afterpay Touch Group Ltd (ASX: APT) or Appen Ltd (ASX: APX).
I'm personally quite bullish on Fortescue, particularly if the technical environment can remain stable in the second half of the year and I could easily see the Fortescue share price breaking the $10 barrier in the coming weeks.
