Three ASX penny stocks that turned out to be goldmine this year

Highlights

  • Investing in penny stocks is a risky venture.
  • However, if these small companies make a turnaround, then they can easily make their investor happy with their multi-bagger returns.
  • DOR, SYA, PRL are some of the penny stocks that turned multi-bagger this year.

Investors generally steer clear from investing in penny stocks due to their heightened volatility. Managing risk in penny stock is somewhat difficult due to their erratic movements and low liquidity. Therefore, more often than not, short-term aggressive traders trade these stocks.

ASX penny stocks

Image Source:  Cammeraydave | Megapixl.com

However, if these small companies make a turnaround, then they can easily make their investor happy with their multi-bagger returns. In 2021, as the markets soared to all-time highs, a lot of penny stocks followed the course, turning into a goldmine for their investors. Let us have a look at three ASX penny stocks that turned multi-bagger in 2021 so far.

Read More: Five ASX penny stocks that started October with a bang

  1. Sayona Mining (ASX:SYA)

Sayona Mining is an Australian miner focused on lithium production. The company’s market capitalisation has soared to over a billion dollars this year, all thanks to a bull run in its share price. The stock has delivered a massive year-to-date return of 1400%, last closing at AU$0.15 on 13 October 2021.

Much of the credit could be given to the company’s performance in FY21, as its revenue surged over 10 times to AU$645,387, from AU$60,429 in FY20. The total loss for the year reduced to AU$4.37 million, from AU$5.4 million in the last year.

  1. Doriemus PLC (ASX:DOR)

Doriemus is a UK base oil exploration company, primarily focusing on Weald Basin in Southern England. The company has been a direct beneficiary of a consistent rise in crude oil price throughout the year, now trading above US$80 a barrel.

DOR shares last closed at AU$0.32, trading near the 52-week high of AU$0.36. The shares have rallied 700% this year, as of 13 October 2021, bolstering the market capitalisation to AU$39.6 million.

  1. Province Resources Limited (ASX:PRL)

Another mining stock on our list, Province Resources is a minerals exploration company, currently focused on copper, gold, vanadium etc. The company has recently entered into an agreement to sell its Pascalle Project in WA to Greatland Gold plc for AU$400,000.

The PRL share price has rallied 1450% to AU$0.16 this year. The company’s market capitalisation also soared to AU$169.4 million.

Bottom Line

Although, penny stocks are the riskiest of the small cap companies, making investors shy away from them. It is also important to not to dwell into something for which the risk is not known for fully understood. However, for high-risk appetite investors, some penny stocks have paid the reward for taking high risk this year.

Despite these lucrative returns, investors should consult their financial advisor before taking any position on penny stocks.

Read More: Five tech penny stocks on ASX with decent returns

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