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Highlights
- Buoyed by surging commodity prices, the ASX 200 Materials index registered a gain of 8.18% in March 2022.
- RGL, LRS and CXM are three ASX penny stock miners that have more than doubled in March 2022.
- Before investing in penny stocks, investors must adhere to proper risk management, primarily due to high volatility.
March 2022 has been one of the best moths for the Australian market in a long time. The benchmark ASX 200 index gained 6,39% to end the month at 7,499.6. Also, thanks to surging commodity prices, the ASX 200 Materials index (ASX:XMJ) notched up a gain of 8.18% to close at 18,727.1 in March 2022, clearly outperforming the broader markets.
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However, some ASX penny stocks in the mining space (trading at less than a dollar) have managed to rack up decent triple-digit gains, which make the broader market gains look dwarf. Let us have a look at three such ASX mining penny stocks.
Read More: BHP, CSL and FMG – How these three ASX blue chips have been doing in 2022 so far?
- Riversgold Limited (ASX:RGL)
The first stock on our list is Riversgold, which is an ASX-listed mining and exploration company, having a market capitalisation of AU$32.52 million. The RGL share price has surged over 204.3% in March 2022. One of the main reasons for a buying frenzy in RGL shares is the company’s discovery of multiple lithium-bearing pegmatite dykes within the Tambourah tenement package in the Pilbara region of Western Australia.
On 1 April 2022, RGL shares continued their massive bull run and shot up by another 41.43% to trade at AU$0.1 by 12:30 PM AEDT. The volume for the day was recorded at over 26.7 million shares.
- Latin Resources Limited (ASX:LRS)
Latin Resources is into the business of discovering and developing sustainable minerals in Australia and Latin America in order to produce environment-friendly products. The company has a market capitalisation of AU$140.8 million and its share price rallied 161.1% in March 2022, on the back of a volume of over 767 million shares, which is the highest monthly volume since its listing in 2010.
Today, LRS shares surged by a massive 51.06% to the last traded price of AU$0.142 by 12:30 PM AEDT. The massive spike came after the company announced it has received AU$1.2 million from Integra Capital Founder and the company’s largest shareholder, Mr Jose Luis Manzano after exercising his options.
- Centrex Limited (ASX:CXM)
The last stock on our list, CXM is an Australian resources company, having a market capitalisation of AU$83.93 million. In FY21, the company posted a net loss of AU$2.63 million, significantly lower than a loss of AU$19.82 million a year ago. Last month, CXM shares surged to a high of AU$0.205, closing the month with a lucrative return of 150%.
Today, the stock is again up 5% to the last traded price of AU$0.21, on the back of a volume of 2.62 million so far, as of 12:30 PM AEDT.
Bottom Line
Volatility in penny stocks is quite high which is the primary reason behind wild in a relatively lass time. However, volatility is a two-sided metric, meaning it can cause equally high losses as well. Therefore, before investing in penny stocks investors must adhere to proper risk management.
Read More: MAY & PCL: Two ASX energy stocks under $1 with over 400% YTD gains
