Special Report: Riding the China wave

High flying mining stocks have topped our survey of shareholder returns, notwithstanding the recent stockmarket volatility.

The spectacular rise in Fortescue Metals Group’s share price since chief executive Andrew Forrest took the reins has made the iron ore developer the top performing Western Australian stock over the past five years.

Uranium stocks Summit Resources Ltd, Deep Yellow Ltd and Paladin Resources Ltd delivered top returns for shareholders over the three years to June 2007.

Kimberley Diamond Company Ltd was a consistent poor performer in terms of shareholder returns, and it fell last month to a friendly takeover bid by UK company Gem Diamonds Ltd.

Engineering and construction company Monadelphous Group Ltd was one of the top performers in the total shareholder return survey, outperforming every other mature business in Western Australia.

The appointment of a new board and executive team in June 2006 heralded a revival in the fortunes of Western Metals Ltd, which has been ranked as the best performing Western Australian stock last financial year.

The sharp fall in share values over the past fortnight has highlighted for many investors the tangible value of companies that pay regular dividends.