ASX lithium share Azure Minerals Ltd (ASX: AZS) has had an absolutely stellar year in 2023.
So stellar, in fact, that if you'd invested $2,000 in Azure Minerals on 3 January, those shares would now be worth a whopping $24,800.
That's right.
On 3 January the ASX lithium share opened the day trading for 22 cents.
Shares are up another 5.2% in intraday trading today, currently changing hands for $2.84 apiece.
Crunching the numbers, that's an eye-watering year to date gain of 1,190%!
So, why have investors been sending the Azure Minerals share price rocketing?
Why is the ASX lithium share rocketing in 2023?
A lot has been going right for Azure Minerals this year.
Back on 21 March, when the Azure Minerals share price was 'only' up 26% for the year, the miner reported on promising lithium exploration results at its joint venture Andover Project, located in Western Australia.
Azure holds a 60% interest in Andover while Creasy Group holds the other 40%.
The ASX lithium share soared on the day.
Azure Minerals continued to report on a series of strong drilling results from Andover over the following months. And its share price leapt higher with each new promising lithium discovery.
The stock enjoyed another big boost in August.
That came after management confirmed that the company was a takeover target.
They reported that they had received expressions of interest from Sociedad Quimica y Minera de Chile (NYSE: SQM) to acquire the company for an indicative offer price of $2.31 cash per Azure Minerals share.
Management rejected the offer and investors reacted by sending the ASX lithium share sharply higher.
Foolish takeaway
While investors who snapped up shares on 3 January will be sitting on gains of 1,190%, it's important to remember this doesn't mean Azure Minerals shares will offer similar returns over the nine months ahead.
That performance remains to be seen.
Investors should also keep in mind the importance of holding a diversified portfolio.
Putting all of your money in one stock might result in an outsized gain, as has been the case with this ASX lithium share. But it can also result in major losses if that stock heads in the other direction.
Invest with care.
