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Why I like Saracen (ASX:SAR) and these ASX mining shares today

mining dividend shares

ASX mining shares had a bumper day on Friday. Shares in top miners like Saracen Mineral Holdings Limited (ASX: SAR) rocketed higher despite the S&P/ASX 200 Index (ASX: XJO) edged 0.3% lower.

Here are a few of my favourite Aussie miners that I’d like to buy with some spare cash today.

Saracen and 2 more ASX mining shares to buy today

The Saracen share price has been absolutely flying in 2020. The ASX gold share is up 63.3% for the year including a 4.2% gain on Friday.

Gold prices have been rocketing in 2020 as the coronavirus pandemic has fuelled significant volatility in global share markets. That has seen investors seek the safe haven of gold and increased demand for ASX gold shares like Saracen.

Given the uncertain outlook for FY21, I think ASX gold shares could continue to outperform. That means the Saracen share price is a potential buy even at $5.42 per share.

It’s not just Saracen that I’m watching right now. I think the BHP Group Ltd (ASX: BHP) share price could be worth a look after slumping 3.0% lower this year.

The ASX mining share has been under pressure despite strong iron ore prices this year. That’s largely thanks to the group’s Petroleum segment which comprises a significant portion of earnings.

Oil prices are under pressure this year as supply has increased despite a slump in demand. That means BHP could be a better value buy compared to a pure play iron ore miner like Fortescue Metals Group Limited (ASX: FMG) if we see a strong economic recovery.

The last ASX mining share on my watchlist right now is Lynas Corporation Ltd (ASX: LYC).

The Lynas share price jumped 3.3% higher on Friday but has been largely out of the spotlight in recent months. I think there’s plenty to like about the rare earths miner after securing a lucrative US military tender in April this year.

Foolish takeaway

Momentum can be a funny thing in the share market. These are just a couple of the ASX mining shares I’ve got my eye on as potential outperformers in FY21.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Ken 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.

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