Investors trying to pick the next big thing in the resources boom poured their money into a diverse group of Western Australian companies last year, including iron ore, coal and phosphate stocks.
Investors trying to pick the next big thing in the resources boom poured their money into a diverse group of Western Australian companies last year, including iron ore, coal and phosphate stocks.
The common link with these commodities is that all have soared in price over the past year.
The top-performing stock in the year to June 30 was satellite communications company turned aspiring coal miner, Comdek, which is planning to change its name to Resource Generation.
Comdek is a prime example of restructuring of a failed business.
After going into administration in February 2006, its balance sheet was cleaned up and a new board, which includes Sydney-based managing director Paul Jury, has taken control, delivering big gains for long-suffering shareholders.
The new board initially targeted uranium projects in Cameroon, but has since turned its focus to coal projects in South Africa and Tasmania.
Its share price rocketed to a short-lived high in excess of 40 cents around the end of June, equating to a total return to shareholders of 1,402 per cent for the financial year.
The share price has since dropped to less than half that level, and the company has announced plans to raise $12 million through a share placement pitched at 18 cents per share.
Perth-based Coal of Africa was another high-flying stock last year, rising four-fold to more than $4 in June before slipping to less than $3 currently.
As its name makes clear, the company, formerly known as GVM Metals, is focused on coal projects in Africa.
A major step during the June quarter was a deal with ArcelorMittal, the world's largest steel company, to buy a 17.8 per cent shareholding and enter an off-take agreement from its Limpopo coal projects.
Its cash balance at the end of June was $254 million, making it well placed to pursue its projects.
Writing in the June quarter report, managing director Simon Farrell says progress on the company's projects is continuing to plan.
Como-based Aquila Resources was another top performing stock last year, helped by its unusual mix of coal and iron ore projects (see page 35).
The soaring price of phosphate was great news for shareholders of CI Resources, and to a lesser extent Minemakers.
Belmont-based CI's share price has rocketed from 25 cents in March to about $1.20 currently.
Chaired by former state development minister Clive Brown, it has been a long-term shareholder in Christmas Island miner Phosphate Resources, and currently has a 38.8 per cent stake.
The unlisted Phosphate Resources announced a swath of good news last month, helping to underpin CI's share price. This included the negotiation of price increases with its major customers in the range of 85 to 95 per cent.
Phosphate also reported a pre-tax profit of $6.1 million and said it "anticipates a substantial profitability improvement over the next year notwithstanding continuing market volatility in pricing, exchange rates and fuel costs".
Phosphate also recently announced the planned acquisition of the management rights and a majority stake in three phosphate mines in China.
West Perth-based Minemakers had been pursuing a range of tin and tungsten projects, before switching focus to its 100-per cent owned Wonarah rock phosphate project in the Northern Territory.
Minemakers is aiming for phosphate production in 2010 to take advantage of high commodity prices.
Its share price has fluctuated from less than 20 cents last December to a peak of $2.95 in April. It is currently trading at about 90 cents.
Other companies seeking to take advantage of high phosphate prices include Phosphate Australia, which successfully listed on the ASX last month after a $10 million initial public offering.
Aragon Resources, Uramet Minerals, and Arafura Resources are also pursuing phosphate opportunities.
