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Highlights
- In the one-year period ending on September 29, 2023, ASX 200 has increased by 8.87%, while the materials index has increased by 13%.
- Stanmore Resources, a metallurgical coal company, recorded a rise of over 71% in the past year on ASX.
- Newcrest Mining, a gold producing company, saw its share price appreciating by around 49% in one year.
Australian equity market benchmark index, S&P/ASX 200, closed 0.34% up at 7,048.60 points today (29 September 2023) and has increased by 8.87% in the past one year. The materials index, S&P/ASX 200 Materials (INDEXASX: XMJ), closed 1.22% up at 17,218.90 points and has recorded a rise of nearly 13% in the past year.
Meanwhile, there are two ASX materials stocks that have outperformed both these indexes by a wide margin, appreciating by nearly 50% in one year.
Let’s have a close look at these ASX materials stocks.
Stanmore Resources Limited (ASX: SMR)
Metallurgical coal producer Stanmore operates its mines, wells, and projects in the prime Bowen Basin region of Queensland. Recently, Stanmore has been included in ASX 300 as a part of the September quarterly re-balance.
During the first half of the financial year 2023, the company delivered underlying EBITDA of US$650 million and operating cash flow of US$395 million. In 1HFY23, the revenue increased to US$1,493 million, compared to US$1,096 million in 1HFY22, backed by an extra four months of ownership of the SMC (Stanmore SMC Pty Ltd) assets, partially offset by the impact of ongoing logistics, lower commodity prices and wet weather.
In the financial year 2023, the company expects to deliver saleable production of 12.3-13Mtpa, FOB cash cost of US$87-93/t of FOB (free on board) cash cost and capital expenditure of US$175-195 million.
SMR shares ended today’s trading session at AU$3.7 apiece, 0.27% higher than the previous close. With this, SMR’s share price has increased by 72.90% in the last 12 months and recorded a rise of 43.41% over the previous three months.
The 52-week low of SMR is AU$1.93 apiece, which is 91.71% lower than today’s closing price.
Newcrest Mining Limited (ASX: NCM)
Newcrest Mining claims to be the largest ASX-listed gold producer and one of the biggest gold mining firms globally. The gold production company manages a portfolio of gold and copper assets which have long reserve lives.
In FY23, the company registered a profit after tax of US$778 million and net debt of US$1,459 million. Newcrest paid a dividend of 55 cents per share for the period, the highest annual dividend that the company has ever announced.
Gold production during the year stood at 2.1Moz, while copper production was 133.1kt. The company achieved this production despite the effect of weather patterns, especially with drought like conditions in Lihir.
In FY24, the company expects to register gold production of 2,000-2,300koz and copper production of 120 – 140kt. The anticipated range of sustaining capital expenditure is US$560 – 640 million, and non-sustaining capital expenditure is US$610 – 735 million.
Today, NCM shares closed 0.33% up at AU$24.52 apiece with a market capitalization of AU$21.85 billion. Including today’s gain, NCM’s stock price has surged by 48.60% in the last 12 months and by 18.65% in the previous nine months.
The 52-week range of NCM IS AU$15.72 – 30.28 apiece. It is worth mentioning that today’s closing price is almost 56% higher than NCM’s 52-week low.
