Agriculture stocks: Centrex Metals, GrainCorp and Wellard Limited among the best performing

See the best-performing agriculture stocks and why these companies are attracting investors.

The performance of GrainCorp‘s processing division has contributed to the grain company’s fortunes during the past year.

A little known phosphate rock miner has emerged with the biggest rise in share price of listed agricultural companies during 2021.

Centrex has rocketed up the top performing share price charts with a 136 per cent rise in value during the past 12 months.

Although just a small company, its market capitalisation has almost tripled since the beginning of the year.

The next best performer was GrainCorp, which last Friday reached its highest share price on the Australian Securities Exchange since the 2020 share market crash of $7.90.

With a closing price of $7.85, the grain company’s market capitalisation is nearly $1.8 billion.

The only other big agricultural company listed on the ASX was Incitec Pivot, whose share price rose 39.9 per cent during the year.

Relatively small capitalised companies — under $100 million market capitalisation — were some of the best performing businesses in the past 12 months.

These included livestock carrier business Wellard Limited, with a share price rise of 59.3 per cent and Namoi Cotton, with 84.5 per cent.

Insecticide developer Bio-Gene Technology’s share price rose 48.1 per cent since early January.

Wellard’s turnaround in 2021 comes on the back of a modest profit in 2020 and a massive loss of $48 million in 2019.

Centrex’s fortunes in 2021 have been boosted by its transition into mining phosphate rock at Ardmore in western Queensland in February this year, after years of feasibility studies.

The company extracted 27,000 tonnes of phosphate rock in the first stage of production which was expected to soon top 800,000 tonnes a year.

Centrex managing director Rob Mencel said the company’s share price was helped along by demand for fertiliser globally and prices more than double what they were 18 months ago.

But the quality of the rock phosphate is key to investor interest in Centrex.

“This is the highest grade phosphate product in Australia by a country mile,” Mr Mencel said.

He said if the phosphate purity can be increased to 36 per cent, the mine would rank in the top three in the world.

GrainCorp managing director Robert Spurway said a big harvest last season, strong results in its processing division and a focus on reducing costs an lifting returns on invested capital were the major factors behind his company’s performance.

“If you look on a pro forma basis, the last year we had a big crop was in 2017, where there were similar tonnes handled as in 2020-21, yet earnings in that year were $127 million,” Mr Spurway said.

“Last year, our earnings were $331m.

“I think it underpins that we are a much more focused business.

“We have reduced costs and delivered on earnings through operating initiatives.”

TOP PERFORMERS OF 2021

1. CENTREX METALS (CXM)
Share price January 4, 2021: $0.03
Share price December 24, 2021: $0.071
Gain: 136.7 per cent
Market cap: $29.5 million

2. GRAINCORP (GNC)
Share price January 4: $4.28
Share price December 24: $7.85
Gain: 83.4 per cent
Market cap: $1796.5 million

3. WELLARD LIMITED (WLD)
Share price January 4: $0.059
Share price December 24: $0.094
Gain: 59.3 per cent
Market cap: $49.9 million

4. NAMOI COTTON (NAM)

Share price January 4: $0.30
Share price December 24: $0.485
Gain: 61.7 per cent
Market cap: $84.5 million

5. RIDLEY CORPORATION (RIC)

Share price January 4: $0.92
Share price December 24: $1.435
Gain: 56 per cent
Market cap: $458.5 million

6. BIO-GENE TECHNOLOGY (BGT)

Share price January 4: $0.135
Share price December 24: $0.20
Gain: 48.1 per cent
Market cap: $30.1 million

7. INCITEC PIVOT (IPL)

Share price January 4: $2.28
Share price December 24: $3.19
Gain: 39.9 per cent
Market cap: $6195.7 million

8. AUSTRALIAN VINTAGE (AVG)

Share price January 4: $0.575
Share price December 24: $0.77
Gain: 33.9 per cent
Market cap: $194.5 million

9. APIAM ANIMAL HEALTH (AHX)

Share price January 4: $0.65
Share price December 24: $0.86
Gain: 32.3 per cent
Market cap: $118.5 million

10. AUSTRALIAN AGRICULTURAL COMPANY (AAC)

Share price January 4: $1.10
Share price December 24: $1.455
Gain: 32.2 per cent
Market cap: $877 million