Fig: ASX 200 1 Year chart
Source: Yahoofinance.com
The year ended with a bumper gain of around 9.5% on the broader market, the ASX 200 (from January 1, 2023 to December 31, 2023). The ASX market is hovering near all-time highs and remains poised to go even higher. The year was filled with enormous challenges such as higher interest rates, higher cost of living crises and geopolitical conflicts. Despite this, the year ended on a promising and positive note. The ASX stock market is also on track to regain its previous high reached in August 2021 at 7,629 points. The market is well prepared to reach new highs with notable ideas in 2024. Metal stocks, technology companies and financial companies are all gathering to look at the importance and the performance of the broader index.
Now, let’s look at some of the 2023 gainers and losers on the index.
2023 Top Gainers
Note: The market cap and the share price of the selected ASX companies below are mentioned as of 2 January 2024.
AZURE Minerals Limited (ASX: AZS)
Market Cap: $1.69 billion
CMP: $3.695
Azure holds promise of great potential for the future but also currently stands in a less stable position, without significant assurance of growth to sustain in the coming years given the extreme cash flow negative position of the company and existing cash balances relative to the expected capital requirements for the development of the existing projects in the coming years. The company might also struggle to sustain the operational expenses for full-fledged production, enabling the ideal extraction of monetary value from the projects to be hampered. The company, as a result, has resorted to institutional placements on a large scale for capital inflows. Moreover, the issue price at which the shares are offered is considerably lower than the current market price even after the recent decline, still providing a lucrative position for the subscribers of the recent issue to sell, leading to a further decline in the market value of the stock.
Rimfire Pacific Mining Limited (ASX: RIM)
Market Cap: $42.18 million
CMP: $0.019
The primary focus of Rimfire’s activities over the past few months has been on securing a significant funding base along with simultaneous exploration and test work, which is anticipated to lead to a maiden MRE within the coming months. Rimfire, however, is required to carefully manage the geological complexity of its explorations, which require additional efforts from the company’s part, with the issues primarily revolving around spurious magnetic effects, lateral geochemical dispersion, and non-uniform weathering, which could also lead to disruptions in the development timeline of the project.
Top Loosers
Lake Resources N.L. (ASX: LKE)
Market Cap: $192 million
CMP: $0.135
Lake, notably, holds highly negative cash flows from its operations primarily directed towards administrative, corporate, and staff costs, along with proportional cash outflows mainly towards exploration and evaluation. This, although significant, possesses the potential to provide more than adequate returns in the coming years. This is made evident by the company’s huge resource base of lithium carbonate equivalent, allowing extraction for a long life of 25+ years while also confirming existing monetary value in the projects and acting as a strong base to gain leverage.
Argosy Minerals Limited (ASX: AGY)
Market Cap: $203.6 million
CMP: $0.145
Argosy Minerals is making significant strides with its flagship asset, the Rincon Lithium Project. Recent findings from brine samples have confirmed a thicker lithium brine-bearing layer in the deeper aquifers below the existing indicated mineral resource. This discovery is a positive sign and sets the stage for an upgraded brine mineral resource estimate, which could enhance the project's potential. The company is actively focused on reaching crucial milestones that will support its ambitious growth plans in the near term. These milestones are likely tied to various aspects of project development, including scaling up production and ensuring product quality.
Frequently Asked Questions (F.A.Q)
What are the top losers and gainers in 2023?
Top gainers:
Northern Star Resources Limited (ASX: NST)
Anglogold Ashanti Ltd (AGG)
Besra Gold Inc (BEZ)
Accelerate Resources Ltd (AX8)
Breaker Resources NL (BRB)
Top looser:
Lake Resources N.L. (ASX: LKE)
Argosy minerals Limited (ASX: AGY)
Tempest Minerals Limited (ASX: TEM)
What to select an ASX stock for 2024?
There are many ways and parameters to help choose a business to buy. A single winning strategy is not enough. Past performance and balance sheet strength strongly support future projections.
What ASX stocks are in copper mining?
ASX conpanies contribute to economic growth especially thanks to the abundant copper resources available in Australia. Examples of some ASX companies include Evolution Mining Limited, Sandfire Resources Limited, Ziimplates Holdings Limited and Chalice Mining Limited.
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