- Small-cap stocks have the potential to deliver strong returns compared to mid-cap and large-cap stocks.
- These stocks are volatile. Thus, it requires deep research before making any investment.
- DVP, CDD, VUL are three stocks delivered over 100% in 2021.
Small-cap stocks being volatile, have the potential to deliver strong returns to investors. However, it requires thorough research before reaching any investment decision.
ASX Stocks with over 100% YTD returns
In this article, we have identified three stocks that grew significantly during 2021, following their progress during the year. So, let’s explore these stocks further.
Source: ASX, closing price as of 2 November 2021.
Vulcan Energy Resources Limited (ASX:VUL)
Mineral exploration company Vulcan Energy Resources Limited grew significantly in 2021, driven by significant progress during the year.
On 18 October 2021, the Company announced that it signed a binding lithium hydroxide offtake pact with Umicore. Umicore is a leader in cathode materials production applied in Li-ion batteries for electrified transportation. The deal is for the first five years. The commercial delivery is set for 2025.
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Umicore would buy at least 28K tonnes and a maximum of 42K tonnes of battery-grade lithium hydroxide over the length of the deal.
In the September 2021 quarter, the Company also signed deals with LG Energy Solution and Renault Group to supply battery-grade lithium chemicals.
On 29 September 2021, VUL entered into a deed with Infraserv to obtain a site for its planned Central Lithium Plant of its ZERO CARBON LITHIUM™ Project.
Cardno Limited (ASX:CDD)
Environmental Services and Professional Infrastructure Consultancy Cardno Limited (ASX:CDD) grew significantly in 2021. It noted growth in its NOPAT compared to the previous year. In FY2021, the Company reported a drop of 9.5% in its gross revenue by 9%. However, underlying NOPAT grew massively by 194.7% to AU$27.7 million.
On 21 October 2021, the Company entered into a Share Sale Agreements with Stantec Inc to sell its Americas Consulting Division and its Asia Pacific Consulting Division for US$500 million (AU$667 million). The proceeds from the sale of these divisions would be distributed amongst the shareholders. Around AU$64 million would be retained as cash after paying the transaction costs, repaying the remaining company debt plus the distribution to Shareholders. This cash would support the remaining International Development and South American operations of Cardno. CDD would also use the funds to offer socio-environmental services in Latin America via its subsidiary, ENTRIX.
Develop Global Limited (ASX:DVP)
Base metals and copper-zinc exploration company Develop Global Limited has made significant development in 2021, which supported its stocks to surge up on ASX. On 01 November 2021, the Company announced that it executed another crucial growth strategy, establishing its Underground Services division.
DEVELOP Underground Services would focus on offering various underground mining services to cater to DEVELOP’S own needs, such as at Sulphur Springs and to serve other Australian assignments on a contractual basis.
In line with its strategy of offering services on a contractual basis, the Company has been invited to tender for the mining agreement at Bellevue Gold’s (ASX: BGL) Bellevue project in WA.
The above stocks have delivered significant returns in 2021 and are progressing well. Thus, making these stocks a must-watch in the coming period.