Introduction : Best Performing ASX Stocks
The year 2022 was a very challenging year, not only for the Australian market but also for the entire global market. The markets have experienced inflationary pressures due to supply chain disruptions created by the Corona virus pandemic and further war in Ukraine, which triggered a massive rise in commodity prices, especially energy and agriculture. To tackle the inflation that was rising the prices of goods and services, central banks across the globe unanimously agreed to aggressively raise interest rates from emergency lows to levels that are generally seen as more appropriate for the times, and even now that they are continuously monitoring it, there are still rooms for further hikes. Aggressive interest rate hikes Post-March 2022, investor sentiments began with a cautious note towards their investment decisions, as the ASX stocks have taken the race to maintain upward momentum in the share price above their overvaluations. Recession concerns have made them take the necessary actions of either profit booking or market correction. Economic concerns have impacted investor attention across the globe over the latter half of the year.
The Australian Index S&P/ASX200 has delivered a 3-year compounded annual growth rate of approximately 6.43% (31 August 2020, 6060; 31 August 2023, 7305). All ordinaries had a 3-year CAGR growth of around 6.37% (31 August 2020, 6245; 31 August 2023, 7517). S&P/ASX small ordinaries had a 3-year CAGR growth rate of 0.32%. The terminal value of the market indices is calculated after a downward slope from the peak, or else the growth rate would have been added a little more.
On a positive note, Australian share indices held up better than most other advanced markets due to an outperforming economy.
Let's look at the top 5 performing ASX shares that have outpaced the indices in the approximate last year.
Here are the top 5 performing ASX shares. The market cap and share price are based on data as of the adj. closing price of September 1, 2023.
Wildcat Resources Ltd. (ASX: WC8)
Market capitalization: $266.24M
Share price: $0.40
1 year absolute return (1 year YTD as of September 1, 2023): 1438.46%
Sector(s): Basic Materials
Industry: Gold
Wildcat Resources Ltd. (ASX: WC8) is a company focused on exploration. It has three strategic land positions in world-class provinces: the Mallina Province in the Pilbara of Western Australia, the Lachlan Fold in NSW, and the Fraser Range in Western Australia.
On May 17, 2031, the company reported that it had entered into a binding agreement to acquire the Tabba Tabba Lithum-Tantalum Project from GAM.
AZURE Minerals Ltd. (ASX: AZS)
Market capitalization: $1.15B
Share price: $2.67
1 year absolute return (1 year YTD as of September 1, 2023): 1305.26%
Sector(s): Basic Materials
Industry: Other industrial metals and mining
AZURE Minerals Ltd. (ASX: AZS) is an Australian mineral exploration company. The company transitioned back to Australia with the acquisition of gold and base metal projects in Western Australia in 2020.
Xanadu Mines Ltd. (ASX: XAM)
Market capitalization: $157.23M
Share price: $0.096
1 year absolute return (1 year YTD as of September 1, 2023): 209.68%
Sector(s): Basic Materials
Industry: Other Precious Metals and Mining
Xanadu Mines Ltd. (ASX: XAM) has a portfolio of development-ready and exploration projects in the South Gobi Desert, including Kharmagtai and Red Mountain. It remains one of the few listed juniors that control a globally significant copper-gold deposit in our flagship Kharmagtai project.
Encounter Resources Ltd. (ASX: ENR)
Market capitalization: $152.28M
Share price: $0.385
1 year absolute return (1 year YTD as of September 1, 2023): 133.33%
Sector(s): Basic Materials
Industry: Other Industrial Metals and Mining
Encounter Resources Ltd. (ASX: ENR) is a WA-based project generation, exploration, and resource development company. The primary focus is on discovering major copper and critical mineral deposits in Australia. Encounter controls a large portfolio of wholly owned projects in Australia’s most crucial mineral places that are huge resource bases for critical minerals and copper. Encounter has numerous large-scale copper-based projects being advanced in partnership and funded through farm-in agreements with leading miners: BHP, South32, and IGO.
Gold Road Resources Ltd. (ASX: GOR)
Market capitalization: $1.89B
Share price: $1.755
1 year absolute return (1 year YTD as of September 1, 2023): 43.27%
Sector(s): Basic Materials
Industry: Gold
Gold Road Resources Ltd. (ASX: GOR) is a mid-tier Australian gold producer and explorer with a Tier 1 mine and exploration projects in WA’s north-eastern Goldfields.
The company reported a consolidated NPAT for the half-year of $55.7 million. EBITDA for the period was $122.6 million. Gold sales revenue of $229.0 million was generated from the sale of 80,115 ounces at an average gold price of $2,858 per ounce. The total cost of sales, inclusive of amortization and depreciation, was $123.1 million, producing a gross profit from operations of $105.9 million. The gross profit growth compared to the previous period reflects the higher average gold price realized for sales and the surge in the volume of gold sold.
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