17/08/2004 - 22:00

Special Report - Paladin outperforms top field

17/08/2004 - 22:00

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The strength of the State’s resource sector has been reflected in the companies that dominated the top-performing stocks over the past 12 months to June.

Special Report - Paladin outperforms top field

The strength of the State’s resource sector has been reflected in the companies that dominated the top-performing stocks over the past 12 months to June.

The past financial year has been characterised by resurgent commodity prices, sparking renewed investor sentiment in the sector.

Uranium-focused exploration company Paladin Resources outshone the rest, with a Total Shareholder Return of a massive 1127.3 per cent for the 12 months to June.

Paladin has benefited significantly from an emerging shortage of uranium that has become apparent in the past 12 months.

Despite a downturn in favour, Paladin has maintained its uranium focus during its 11-year history and has been rewarded for its patience.

Now, of the handful of junior companies left exploring for uranium around the world, Paladin is the only one with an advanced portfolio of uranium projects, the most advanced of which is the Langer Heinrich project in Africa.

Investors recognised Paladin’s potential late last year and, as a result, sent its share price skyrocketing. After languishing around the 1-cent mark for much of last year, the share price has since risen to almost 12 cents at the end of June.

Local gold miner Agincourt Resources, although a way off Paladin, was still well ahead of the rest in terms of performance.

Its TSR was an impressive 800 per cent for the year.

Agincourt’s Calais gold discovery has been the talk of the town in recent weeks and the company produces 120,000 ounces of high-grade gold per year at its Wiluna Gold mine. 

Agincourt purchased Wiluna from Newmont last year before merging with listed IT company Gowit, later relisting on the Australian Stock Exchange. Since then the management team has been credited for its exploration success at Wiluna, which has enabled it to grow gold reserves and increase mine from 18 months to three years.

Analysts say it is more likely the mine life will grow to seven years, however.

Agincourt’s share price more than doubled through to the end of June since re-listing in December.

Local telco Queste Communications was one of two non-resources companies to make it into the top 10 performers for the 12 months.

It placed third, up 660 per cent in terms of TSR performance.

According to its website, Queste is a listed telecommunications company focused on the supply and development of Internet telephony services.

The company is chaired and managed by Perth corporate raider Farooq Kahn.

Diversified explorers Legend Mining (up 622.2 per cent) and GME Resources up (534.1, per cent), ranked fourth and fifth respectively on the 12-month TSR performance index.

Legend until recently was mining silver at its Elizabeth Hill Silver mine, however it is now focused on developing the historic Gidgee gold mine south-east of Meekathara.

GME Resources, headed by Resolute Mining chief Peter Sullivan and former Anaconda director Geoff Motteram, is an exploration and investment company focused on gold and nickel.

It was more recently active in acquiring unlisted nickel explorer NiWest from the receivers of failed base metals miner Western Metals.

Niwest, controlled the nickel resources adjacent to Minara’s large Murrin Murrin nickel mine near Leonora.

Notably, both GME and Legend managed a plus-500 performance in the TSR survey. The 500 per cent performance mark seemed to be a rough cut-off point that separated outstanding performers from the rest.

Resources stocks Amadeus Energy, Synergy Metals, Moto Goldmines, Andean Resources and Niagara Mining were all strong performers, ranking in tight succession in the 400 per cent range, the lowest being 422.7 per cent for the year.

Also of note were two bigger companies who performed well in the past financial year.

Local bio-tech company pSivida, as well as Dragon Mining, have market caps over the $100 million mark.

Significantly, they both had 12-month performance rates of close to the 400 per cent mark, which marked the top 10.

Dragon Mining ranked 11th while pSivida ranked 13th.

 

1-YEAR RETURNS 

  • Paladin Resources: 1,127.3%
  • Agincourt Resources: 800%
  • Queste: 660%
  • Legend Mining: 622.2%
  • GME Resources: 534.1%
  • Amadeus Energy: 477.8%
  • Synergy Metals: 475%
  • Moto Goldmines: 447.6%
  • Andean Resources: 441.7%
  • Niagara Mining: 422.7%

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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