Why these ASX shares are breaking out into record highs

While the ASX 200 might be chopping back and forth, here are some ASX shares breaking into new record territory.

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The broader S&P/ASX 200 Index (ASX: XJO) has been chopping back and forth as rising bond yields weigh on market sentiment. While big names might be going nowhere, here are some ASX shares in the small end of town that have been breaking out into record highs. 

ASX shares beating the market and running into record highs 

Andromeda Metals Ltd (ASX: ADN)

The Andromeda share price has run into record all-time highs this week. This comes after the company’s Great White Kaolin Project signed its first binding offtake agreement for 5,000 tonnes per annum of its premium ceramic grade product. The small-cap ASX share briefly touched 45 cents on Wednesday, up from 28 cents at the start of the year and 5 cents back in September 2020. 

The company has highlighted the Great White project as the world’s largest known high-purity halloysite-kaolin resource. Its most recent pre-feasibility study has determined a net present value of $736 million, earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $2.06 billion and a 26-year mine life for the project. 

To further advance the project into production, the company is currently undergoing its definitive feasibility study, evaluating potential offtake partners and pending assessment with regards to its mining proposal from the South Australian Government. 

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price has gone from strength to strength after the company recorded one of its strongest sales periods to date. This ASX share has delivered more than 50% year-to-date returns after closing at 30 cents on Thursday.

The company’s half-year results announced on 25 February highlighted a 36% increase in revenue to $11.1 million and a step closer to profitability with an EBITDA loss of $912,000 compared to a $1.7 million EBITDA loss in 1H20. 

Alcidion digitally enables healthcare organisations through its flagship product, Miya Precision. This provides clinicians with actionable insights that directly impact patient care through the consolidation of information from various systems. 

Uniti Group Ltd (ASX: UWL) 

Uniti is a diversified telecommunications services provider focused on three core business areas including wholesale & infrastructure, communications platform as a service and consumer & business segments.  

The company has delivered rapid growth through strategic acquisitions and organic growth in its core fibre infrastructure. Its half-year results announcement revealed a 148% increase in revenue to $54.6 million while EBITDA surged 307% to $29.3 million.

Uniti successfully completed a series of acquisitions in 2020 to help bolster its outstanding growth figures. These acquisitions included HarbourISP effective 1 November 2020, OptiComm on 20 November 0220 and Telstra Velocity on 24 December 2020. The acquisitions have established greater scale, network, reach, capability, locked in revenue and business opportunities for Uniti. 

Uniti believes it is now positioned for accelerated organic growth, driven by the delivery of current contracted premises and improved penetration across its entire fibre premises portfolio. The company also highlighted its improved earnings as a way for the business to self-fund organic growth opportunities moving forward. 

The Uniti share price closed at a record high of $2.43 on Thursday, marking ~40% year-to-date returns for this ASX share. 

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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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