As the 2024 Financial year is now closed, I want to take a look at the top 20 Biggest Losers of FY2024 in the ASX 300 and see if there is anything that can be learned from them.
1. Core Lithium ASX:CXO
As the name suggests, a Lithium stock. First production was in FY2023 they even showed a small profit. In FY2024, production increased but the lithium price has fallen so much that they will make a loss this year. One of the biggest winners during 2021 and 2022 is now the biggest loser of 2024.
2. Neometals ASX:NMT
A battery mineral hopeful that has no revenues and doesn’t look like having any for many years yet.
3. Sayona Mining ASX:SYA
Another Lithium miner with first its first revenues produced this year. Unfortunately, they are not profitable at current Lithium prices and are not forecast to turn a profit until beyond FY2026.
4. Chalice Mining ASX:CHN
Gold, copper, cobalt, palladium, platinum and nickel miner that is nowhere near producing any revenues or profits. Analysts see nothing in this regard until beyond 2028.
5. Patriot Battery Metals ASX:PMT
Lithium explorer with no earnings or revenues forecast until beyond 2028.
6. Liontown Resources ASX:LTR
Lithium miner expected to produce first revenues next year. Analysts are even forecasting a profit. Of course, that will be almost entirely dependent on the lithium price.
7. Calix ASX:CXL
Environmental technology company producing small revenues but not forecast to turn a profit until beyond 2026.
8. Cettire ASX:CTT
Profitable Luxury goods drop-shipper. Profitable until the most recent quarter/half that is. Business model called into question as revenues are set to rise 78% in 2024 and yet profitability now looks unlikely.
9. IGO ASX:IGO
Profitable miner albeit much less so this year than last year. Exposed to Lithium and Nickel which have both had a very poor 2024.
10. Syrah Resources ASX:SYR
Natural graphite producer that has struggled due to competition from Chinese produced synthetic graphite. Currently losing money but forecast to be profitable in 2026. Graphite price will have the most significant say in that.
11. Talga Group ASX:TLG
Like Syrah in the graphite space but only expected to start producing in 2025. Profits not expected until 2027 but again will depend on the graphite price.
12. Omni Bridgeway ASX:OBL
Operates globally in the dispute and litigation space. Terribly inconsistent history of earnings (but more so losses). Things are expected to improve over the next two years but who really knows with this company?
13. Leo Lithium ASX:LLL
A company in the Lithium space in Africa that appears to have been the victim of some serious government corruption. Highlights the risks of investing in parts of Africa. The shares have been suspended for some time but should return albeit without an asset and just some cash having basically been ejected from their project and paid a pittance to do so.
14. Star Entertainment Group ASX:SGR
Casino and resorts operator in Australia that is has hit some regulatory hurdles. Issues around whether they will have their casino licence revoked. Changes across the board have been made by the company in attempt to prevent this. Large capital raise during the year to keep the business afloat has contributed to the share price being crushed. Shares appear to be trading below book value at current prices so wouldn’t surprise to see it on the list of best stocks this time next year but anything could happen!
15. Renascor Resources ASX:RNU
Another graphite stock that isn’t expected to start producing any revenues until 2026.
16. Ioneer ASX:INR
Lithium stock not expected to produce any revenues until 2027.
17. TerraCom ASX:TER
Coal miner in South Africa. Profitable albeit much less so with the declines in the coal price. Appears it got way too overvalued when the coal price spike in 2022 and has been falling back to earth ever since. Shares now appear to be trading around book value.
18. Helius ASX:HLS
Like many in the pathology and imaging space, Helius has struggled since peaking during Covid. The company is expected to show a loss this year before returning to profit next year.
19. Arafura Rare Earths ASX:ARU
Rare earths explorer that isn’t expected to show any revenues until beyond 2026.
20. Weebit Nano ASX:WBT
Computer memory (ReRAM) technology company that is yet to sign a significant customer for its product and is bleeding cash at an alarming rate.
Final thoughts on the 20 Biggest Losers of FY2024
In reviewing the 20 worst performing companies on the ASX this year, several common themes emerge. Many are heavily reliant on commodity prices, particularly in the lithium and graphite sectors, where price declines have severely impacted profitability. Others are speculative ventures in early development stages, with revenues and profits not expected for several years. This highlights the inherent risks of investing in industries dependent on volatile markets or still in exploratory phases. Additionally, some companies face significant operational and regulatory challenges, underscoring the importance of diversified portfolios and thorough due diligence when investing in high-risk sectors.
Post thought – the losers of FY2023
4 of the worst stocks of FY2023 are also on the list of the worst stocks of FY2024. 3 of the best stocks of FY2023 are on the list of worst stocks of FY2024.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
20 Biggest Losers of FY2024