Although the S&P/ASX 200 Resources (Index: ^AXJR) (ASX: XJR) has only managed to carve out a gain of 1.5% year-to-date, a number of resources shares have managed to buck the trend and push significantly higher.
Three resources shares which have gone gangbusters this year are listed below. Here’s why they are higher:
The Alderan Resources Ltd (ASX: AL8) share price has risen a staggering 265% since listing on the Australian share market at 20 cents per share in June. Although at present Alderan is just at the exploration stage, the company hopes that its drilling program unlocks the world class potential of its Frisco Project in Utah, United States. It is still very early days, so I would suggest investors resist an investment and add it to their watchlist.
The Avz Minerals Ltd (ASX: AVZ) share price has gained over 335% since the start of the year. The acquisition of the Manono lithium project in the Democratic Republic of Congo at the start of the year has been the catalyst for this gain. According to an independent review, the world class potential of the project has recently been confirmed. Furthermore, last week the first of seven drill holes revealed the presence of high-grade lithium mineralisation. With lithium demand expected to grow strongly in the future, Avz could be one to watch in the future.
The Clean TeQ Holdings Limited (ASX: CLQ) share price is up 54% so far this year. Investors have been fighting to get hold of its shares thanks to its exposure to the cobalt boom through its Syerston Nickel Cobalt Scandium Project in New South Wales. According to management, the mineral deposit is one of the largest and highest grade sources of cobalt outside Africa. This arguably puts the company in a strong position to profit greatly from the increasing demand for cobalt to be used in the lithium batteries of electric vehicles.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.