It is always interesting to see which ASX shares performed the best during a financial year. To help you out, we've compiled a list of the five best performing ASX 200 shares in FY21.
The S&P/ASX 200 Index (ASX: XJO) is one of the most important indices in Australia. It contains all of the largest companies on our stock market, and it's a barometer for how well our economy is doing.
Here are your top performers!
Shares making the ASX 200 A-TEAM in FY21
You might notice a bit of a pattern in this list… Mining and resource companies dominated the index during the last financial year.
An influx of demand spurred on by generous monetary policies globally elevated many commodity prices to new heights. Hence, miners have enjoyed bumper revenues and profits. Though, it might not have been the companies you would expect.
Orocobre Limited (ASX: ORE)
Orocobre is one of Australia's largest lithium producers, with a market capitalisation of $2.15 billion. The company, which is based in Brisbane with operations spanning the world, primarily produces lithium hydroxide, carbonate, and spodumene.
Funnily enough, Orocobre made the ASX 200 index by the skin of its teeth. The company was added to the index just recently in the last quarterly rebalance. Increased demand for the material commonly used in batteries boosted the company's share price over the year.
Interestingly, the lithium producer announced its plan to merge with Galaxy Resources Limited (ASX: GXY)
In FY21, Orocobre delivered shareholders a staggering return of 172%.
HUB24 Ltd (ASX: HUB)
Proving money could be made in something other than mining/resources in FY21, HUB24 slots into the list. The company operates in the financial sector, providing wealth management solutions to connect advisers and their clients.
HUB24's share price ascended towards the tail end of last year. The acquisition of Ord Minnett's PARS portfolio service expanded the company's funds under management (FUM) significantly. In March 2021, total FUM reached $51.39 billion, representing an increase of 237% on the prior corresponding period.
The stellar growth clearly impressed investors over the year. Shares in this ASX 200 company grew by 177% in value during the last financial year. Shareholders must be pleased with that!
Lynas Rare Earths Ltd (ASX: LYC)
Now it's back to mining companies. Making the podium finish in FY21 is rare earths giant, Lynas Rare Earths. This company boasts a market capitalisation of $5.11 billion following a momentous rally out of the COVID-19 crash.
Rare earth elements are commonly used in rechargeable batteries for electric cars, computers, wind turbines, etc. Prices for the rare earth neodymium and praseodymium (NdPr) more than doubled between March 2020 and March 2021, pushing the Lynas share price higher.
Well, shareholders were rewarded for holding through the volatility. This ASX 200 share nearly tripled in FY21 with a gain of 197%.
Pilbara Minerals Ltd (ASX: PLS)
Would you look at that, it's another lithium producer. Pilbara Minerals is Orocobre's bigger competitor with approximately 30% more annual revenue in the 2020 calendar year.
As of December 2020, the company's trailing 12-month revenue was $105.5 million, an increase of 59.4% from December 2019. Additionally, the company's strategy and outlook announcement on 11 May showed plans to further increase production.
It might be hard to believe, but the Pilbara share price has provided its investors with better returns than Bitcoin (CRYPTO: BTC) in the last financial year. The ASX 200 constituent gained a whopping 437%. Meanwhile, the OG cryptocurrency increased by 250%.
Chalice Mining Ltd (ASX: CHN)
It is time to take our hats off and crown the official best-performing ASX 200 share of FY21… with a mind-boggling 657% return in a twelve-month period — it is none other than Chalice Mining.
Investors of this mining explorer have struck gold. Chalice has 3 major operations in Australia including the Julimar Nickel-Copper-PGE Project, Pyramid Hill Gold Project, and Hawkstone Nickel-Copper-Cobalt Project. In addition to these, it is also involved in a number of joint ventures.
Plenty of excitement has surrounded the explorer's Julimar project. Several releases from the company have indicated extensive nickel-copper anomalies.