More than 900% gains: 5 ASX shares that won investors in 2021

The year 2021 had been a great one for the Australian equities market, with many shares delivering multi-bagger returns. The sharp recovery from the pandemic lows made last year in the broader markets was one of the sharpest rallies ASX 200 has witnessed since its inception.

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With 2021 just about to end in a month, investors have already raked in massive gains in some of the hottest stocks of the year. Let us have a brief look at the top high-flying stocks of 2021 that proved to be a gold mine for investors.

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Note: The returns are calculated year-to-date, as of 12:30 PM AEDT, 3 December 2021.

1. Sayona Mining Limited (ASX:SYA)

The top performer of the year and that too by a fair margin is Australian lithium producer Sayona Mining. The company focuses on developing raw materials for lithium-ion batteries and has surged to a market capitalisation of AU$951 million this year.

SYA shares have rallied sharply in 2021, delivering an astonishing return of 1,446.9% to AU$0.13. The company also reduced its FY21 net loss to AU$4.38 million, from AU$5.4 million reported in FY20.

2. Red Hill Iron Limited (ASX:RHI)

Another ASX-listed miner, Red Hill Iron engages in iron ore, base metal and gold projects in Western Australia. The company has a market capitalisation of AU$193.3 million and reported a net loss of AU$1.65 million in FY21, compared to a net loss of AU$0.47 million in FY20.

The RHI share price has surged 1,189.4% to AU$3.3 and delivered a dividend of AU$1.2 per share. The company ended FY21 with a cash reserve of AU$92.02K, compared to AU$651.16K in FY20.

3. Province Resources Limited (ASX:PRL)

Province Resources is a natural resources company listed on the Australian bourse. The company has reported a net loss of AU$14.5 million in FY21, compared to a AU$1.72million loss in FY20. Recently, it sold its Pascalle Project in the Paterson Province of Western Australia, raking in AU$400,000 from the deal.

Despite piling on losses, the company’s share price has risen 1,092.3% this year to AU$0.16, bolstering the market capitalisation of the company to AU$175 million.

4. Lake Resources NL (ASX:LKE)

Founded in 1997, Lake Resources is another mineral exploration company on the list. The company is a clean lithium developer and aims to develop sustainable, high purity lithium. The company has risen to a market capitalisation of around AU$1 billion this year.

Lake Resources minimised its losses in FY21 to AU$2.89 million, from AU$4.9 million in FY20, while the LKE shares rallied 1,023.3% to AU$0.82 this year, delivering a dream return to investors.

5. Arizona Lithium Limited (ASX:AZL)

Arizona Lithium (formerly known as Hawkstone Mining) is a diversified mining company currently working on two projects – the Big Sandy Lithium project and the Lordsburg Lithium project. The company has a market capitalisation of AU$180.7 million and posted a net loss of AU3.46 million in FY21, over a AU$3.49 million loss in FY20.

The AZL share price is up 933.3% this year, last traded at AU$0.092. In November 2021, the company also posted outstanding metallurgical testwork results from the Big Sandy Lithium project - Bench-scale ore beneficiation work had produced a concentrate containing 71% of the lithium in 36% of the whole ore mass.

Bottom Line

Although these four-digit returns might seem common, especially in the metals and mining space, one has to consider that the year 2021 has proven to be an exceptional one for equity investors. These past returns do not guarantee future performance.

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