Which ASX stocks performed the best and worst last month?

The ASX 200 fell 2.98% in May, marking its worst monthly performance since December 2022. It was an incredibly bifurcated market – If you’re not investing in large cap tech, chances are, you’re underperforming the market  

The 10 Best Performing Stocks in May

The lithium sector continued to stabilise in May but mid-caps led to the upside :

• Leo Lithium: Operates the Goulamina Project (50% owned) in Mali, which is expected to hit production status in mid-2024. The company secured a $106 million strategic placement with its JV partner Ganfeng at 81 cents per share – An 11.7% premium to its previous price.

• Lake Resources: Has been a major laggard amongst lithium stocks and remains down 36% year-to-date. The stock’s performance in May was buoyed by the successful production of 2,5000 kg of lithium carbonate via its pilot plant. 

• Latin Resources: The stock moved out on 18 May after extension drilling encountered a significant lithium swarm that extended the footprint of the company’s Colina Deposit to over 2.0 km by 1.0 km wide. 

Other names of interest:

• Audio Pixels: Largest shareholder Frederick Bart bought an additional $2.3m worth of shares.

• Serko: Upbeat FY23 results for the year to 31 March 2023. Revenue was up 154% to $48 million, ahead of the revised FY23 guidance range of $42-47 million.

• Adbri: Upbeat FY23 outlook, sees positive impact from last year’s materials price increases as well as further increases for most product lines this year.

The 10 Worst Performing Stocks in May

The Bloomberg Commodity Index is down more than 13% year-to-date as a result of China’s disappointing post-Covid recovery. This weighed on several commodity-related stocks including copper, lithium, graphite and coal miners.

• 29Metals: The stock is down more than 70% year-to-date, gutted by operational challenges and adverse weather conditions. The latest update on 24 May provided a strategic update on the recovery of its Capricorn Copper and Golden Grove projects but raised concerns about the capital required to restart production and unlock growth.

• Vulcan Energy: No major announcements this month. The company’s flagship Zero Carbon Lithium Project has a capex price tag of 1.5 billion euros (A$2.4bn) which remains a key funding overhang for the stock. 

• Syrah Resources: No major announcements this month. The stock is experiencing a continuation selloff after its March quarter report flagged volatile sales orders from Chinese anode customers. Syrah said it plans to reduce production at its Balama Graphite Project to “match periods of volatile customer demand and lower sales ordering.” 

• Terracom: Coal prices spiralled lower in May, down 27% to US$135 a tonne. Prices are now down 66% year-to-date.