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Todays West Australian

WA lithium hopeful leads ASX200’s top-performing stocks

Liontown Resources is leading a WA share market rush that sees local lithium and gold companies topping the country’s best performing stocks as the end of the financial year closes in.

The lithium hopeful, which has been boosted by a $5 billion takeover offer from US giant Albemarle, is one of seven WA stocks in the ASX 200’s top-10 biggest gainers in 2022-23 , charging 165 per cent higher over the period. The leap compares to the 8.4 per cent recovery in the S&PASX 200 index for the year so far that has the median growth superannuation fund tracking to about an 8 per cent gain for the 12 months.

Liontown shares have nearly doubled in value to $2.86 since the confirmation in March that it had rejected several approaches from Albemarle to buy the company and its Kathleen Valley project near Leinster for up to $2.50 share.

US-based IT company Life360 and Telix Pharmaceuticals are in second and third places on the best performers list, with gains of 129 per cent and 127 per cent respectively.

However, the rest of the top-10 table has a distinctly minerals flavour, with gold stocks Bellevue Gold (111 per cent), Northern Star Resources (95 per cent), De Grey Mining (69 per cent) and Gold Road Resources (60 per cent) mixing it up with lithium miner Pilbara Minerals (107 per cent) and metals play Chalice Mining (88 per cent).

Lithium stocks are tracking higher again on renewed sentiment around the battery mineral after a few subdued months.

Gold also been through some uncertain months, hovering just under $US2000 an ounce as investors await clearer direction on US interest rates. “That said, the metal still seems comfortable in a historically high nominal price range,” investment bank Citi’s analysts said last week. “We think the macro environment is skewed positively for gold investment over a 12-month horizon, especially as the yellow metal is already starting from a historically high base.”

Citi sees the metal potentially hitting $US2200/oz by the end of the year or first half of 2024.

Stock gains for 2022-23 in the broader all ordinaries index have been bigger, led by apparel retailer Cettire’s 413 per cent increase ahead of Neuren Pharmaceuticals (239 per cent).

WA rare earths player Lindian Resources also had a good year, up 225 per cent to 39¢, as has South American-focused minerals explorer Latin Resources, putting on 209 per cent to 19.5¢.

Among the year’s disappointments are Hastings Technology Metals, which is off 65 per cent, including a big hit after a cost blowout on its Yangibana rare earths project in WA. The biggest loser in the ASX200 is casino group Star Entertainment Group, down 56 per cent.