As 2025 draws to a close, Western Australia's gold mining sector has firmly established itself as the standout performer on the Australian share market, delivering spectacular returns for investors during a golden year for the precious metal.
Gold Stocks Outshine the Broader Market
With just six trading days remaining in the year, an analysis of the S&P/ASX200 index reveals a remarkable trend: gold miners constitute eight of the top ten best performers. Impressively, six of these companies are headquartered in Western Australia. This collective group has achieved an average gain of 159.5 per cent since January 1, dramatically outpacing the broader market's modest growth of 5.75 per cent.
The bullion price itself has been the primary engine for these gains. Gold is on track for its best annual performance since 1979, surging approximately 65 per cent to $US4,319 per ounce by late Friday. This remarkable rally has been fuelled by a combination of geopolitical tensions enhancing its safe-haven appeal, sustained buying from central banks, and investors seeking portfolio diversification.
The Top Contenders and Standout Performers
While the gold sector dominates, the absolute top spot on the ASX200 for 2025 appears destined for defence stock DroneShield, which is tracking towards a 250 per cent gain despite a volatile year. Beyond the main index, even more staggering returns have been recorded. Sydney-based Dateline Resources, an All Ordinaries-listed company with a gold and rare earths project in California, has seen its share price leap nearly 5,800 per cent, turning a $700,000 investment from April into over $20.5 million.
Among the leading WA gold plays, Regis Resources recently hit a record high of $7.71, just edging out Catalyst Metals in the top-ten rankings. They are followed by a suite of familiar names including Genesis Minerals, Evolution Mining, Vault Metals, Newmont, Capricorn Metals, and Westgold Resources. The only non-gold stock to break into this elite group is lithium miner Liontown Resources, which has rebounded over 170 per cent after a difficult previous year.
Outlook for 2026 and Market Losers
The positive momentum for gold is expected to continue into the new year. Investment bank Goldman Sachs has forecast the metal could reach a record $US4,900 per ounce by December 2026. This supportive outlook suggests the windfall for producers selling into rising prices may extend further, benefiting companies and executives alike.
Not all stocks shared in the 2025 prosperity. The year's notable losers included several prominent names hampered by scandal or operational struggles:
- WiseTech Global, down over 40% amid turmoil linked to allegations against its founder.
- Guzman Y Gomez, whose growth has slowed from previous rates.
- IDP Education, hurt by tougher international student visa rules.
- Treasury Wine Estates, nearly halved since August due to persistent US business problems.
- Asset manager HMC Capital, facing eroded investor confidence.
The dramatic rise of WA's gold sector underscores how commodity cycles and global macroeconomic forces continue to shape the fortunes of the Australian share market, with local miners capturing the lion's share of gains from bullion's stellar run.
