Why did the Western Areas (ASX:WSA) share price just hit an 18-month high?

It's a good day to be a Western Areas shareholder.

An excited man stretches his arms out above his head as he reaches a mountain peak representing two ASX 200 shares reaching multi-year high prices today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After a week of generally strong performance, the Western Areas Ltd (ASX: WSA) share price has reached its highest point in nearly 2 years.

The nickel producer's stock has been gaining nearly every session since last Thursday, clocking up an extra 11.7% of value in that time.

As a result, the Western Areas share price reached a high of $3.33 in intraday trade today – the highest it's been since the end of October 2019.

At the time of writing, it has dropped to trade at $3.28. Though, that's still 2.34% higher than its previous close.

So, what might have spurred Western Areas' stock to soar to long-forgotten heights? Let's take a look.

Western Areas looks to the future

The reason behind the Western Areas share price's recent surge is a mystery. However, the company did release its non-price sensitive annual report this afternoon.

In its annual report, the company's leaders reminisced on financial year 2021 – a year in which Western Areas struggled against COVID-19 and lessening production at its Forrestania operations.

Forrestania is now a maturing operation and it brought in lower grades of nickel in financial year 2021. In fact, relative to financial year 2020, nickel production at Forrestania was down 23%.

The company has since implemented a turnaround strategy which has resulted in a rebound of performance.

Additionally, Western Areas' Odysseus Mine is fully funded and its development is progressing on schedule.

Odysseus' maiden production is expected in financial year 2023, in line with an expected global shortage of nickel.

The annual report likely didn't move Western Areas' shares today, but it might have boosted confidence in the company's future.

Western Areas share price snapshot

It goes without saying, the Western Areas share price has been performing well on the ASX lately.

It has gained 21% since the start of 2021. It's also 46% higher than it was this time last year.

Should you invest $1,000 in Chrysos Corporation Limited right now?

Before you buy Chrysos Corporation Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Chrysos Corporation Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Here's the latest earnings forecast out to 2029 for Rio Tinto shares

Let’s unearth what this mining giant is predicted to achieve.

Read more »

Female miner smiling in front of a mining vehicle.
Resources Shares

Is the BHP share price a buy? Here's UBS' view

Let’s dig into what an expert thinks of this mining giant.

Read more »