Thanks to positive forecasts for global growth and infrastructure spending, resources shares have picked up where they left off and pushed notably higher in 2018.
This has led to a number of resources shares reaching 52-week highs. Here's why these high-fliers are reaching new highs this week:
The Tawana Resources N.L. (ASX: TAW) share price reached a 52-week high of 58 cents today. Investors have been fighting to get hold of the lithium exploration company's shares due to the positive drilling results at its Bald Hill joint venture in the Eastern Goldfields region of Western Australia. There appears to be a significant resource underground, which is great news for shareholders considering the insatiable demand for lithium and the high prices it is commanding.
The Western Areas Ltd (ASX: WSA) share price has climbed to a 52-week high of $3.53 on Monday. It isn't just lithium that is in demand from battery makers. Nickel prices have been rising in recent months as demand for its use in renewable energy batteries increases. Although its shares are at a 52-week high, I still think they could provide market-beating returns this year. This could make Western Areas well worth taking a closer look at today in my opinion.
The Zenith Minerals Ltd (ASX: ZNC) share price rocketed to a multi-year high of 20 cents this morning after announcing that it has raised $2.4 million through the exercise of listed options. The proceeds will allow the company to fast track the evaluation of its high quality, lithium, gold, and base metals exploration portfolio. This includes its Split Rocks Lithium & Gold asset in Western Australia. The site is just 10km north west of the world-class Earl Grey lithium asset operated by Kidman Resources Ltd (ASX: KDR) and mining giant SQM.
