Strong start to financial year

The market capitalisation of the Western Australian mining sector grew by $4.1 billion over July, driving capitalisation for the entire state up 10.3%, the Deloitte WA Index has found.

The market capitalisation of the Western Australian mining sector grew by $4.1 billion over July, driving capitalisation for the entire state up 10.3%, the Deloitte WA Index has found.

Market capitalisation closed at $130.8 billion, marking the six consecutive month of growth.

According to the firm, the mining sector’s biggest movers were Sandfire Resources and Kagara, who increased their market capitalisation by 135.1% and 125.4% respectively.

Sandfire’s market capitalisation rose to $123 million at the end of the month, after announcing high copper grades at the DeGrussa project as well as a non-renounceable share issue.

Kagara’s $381 million growth followed significant capital raisings in June, along with an increase in copper production and its highest quarterly production of zinc for more than 18 months.

According to Deloitte Perth Office managing partner Keith Jones, the growth has been supported by improved commodity prices and stronger sentiment towards the resource sector.

“The WA Index has continued to lead the pack in terms of its strength over the past six months,” he said.

“The July results mean the Index has started off the 2009/10 year on a strong note, after what was a record level of growth during the last quarter of the previous financial year.”

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