Following a stunning 6.5% gain in the last 30 days, the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) hit a 52-week high of 5,811 points yesterday.
Three shares which have done a lot of the heavy lifting in the last month are listed below. Here's why they went gangbusters during the period:
Galaxy Resources Limited (ASX: GXY)
The shares of this lithium miner have rocketed higher by 31% in the last month thanks largely to news that it has signed binding agreements with existing customers for 120,000 tonnes of lithium concentrate for delivery in 2017. According to the release Galaxy will receive US$905 per tonne for 6% lithium oxide. This was a big lift in prices from last year and far greater than I had anticipated. Demand for lithium clearly remains strong and Galaxy is in a great position to take advantage of it.
Lovisa Holdings Ltd (ASX: LOV)
The jewellery retailer has surged 26% during the last 30 days after a significant turnaround in its performance. At the start of 2016 Lovisa's share price fell a remarkable 36% in one day after a trading update revealed that the weak Australian dollar was crushing its margins. But despite the continued weakness in the local currency Lovisa has managed to improve its margins and has forecast half-year earnings before interest and tax (EBIT) in the range of $26 million to $28 million. By comparison, in the whole of FY 2016 Lovisa produced EBIT of just $24.2 million.
Resolute Mining Limited (ASX: RSG)
This gold producer has seen its share price rise 16% in the last 30 days, or a whopping 39% since December 19. A rebound in the gold price was a huge boost for Resolute, like it was for a number of Australia's leading gold producers. The spot gold price fell as low as US$1,120 an ounce in the middle of December, but has since recovered by almost 5.5% to US$1,181 an ounce. With an all-in sustaining cost of US$874 an ounce, Resolute is still profitable despite the drop in the gold price. It also has a healthy balance sheet with a net cash position of $75 million. Whilst I'm bearish on gold prices and therefore wouldn't invest in its shares, if you're bullish on gold then Resolute could be a good option in the industry.
