WA listed companies reach highest value since 2011

Deloitte’s latest WA Index has shown that the value of Western Australia-based listed companies has jumped by 26.8 per cent to $193.5 billion during the 2018 financial year, the highest level since May 2011.

The special edition of Deloitte’s WA Index was released at the Diggers and Dealers Mining Forum in Kalgoorlie today by Deloitte Western Australia Assurance and Advisory partner Dave Andrews.

Commenting, Andrews said that the performance of battery metals and rare earths, as well as the price appreciation of energy commodities such as crude oil, thermal coal and liquefied natural gas (LNG) were all contributing factors.

“Price appreciation in key energy-linked commodities such as liquefied natural gas (LNG), crude oil, and thermal coal really stood out this year thanks to growing energy demand throughout China and Asia, and the continued focus toward cleaner energy solutions,” he said.

“Additionally, battery metals, particularly nickel, cobalt and copper, and rare earths showed strong momentum on the excitement surrounding battery storage demand, the expanding electric vehicle (EV) market, renewables, and our hunger for more and more consumer technology.”

The top 10 listed companies in order were Wesfarmers, Woodside Petroleum, South32, Fortescue, Iluka, Northern Star, Independence Group, Mineral Resources, Regis Resources and BWP Trust.

For the year ending June 30 2018, the top three movers in the WA Index’s top 20 companies were Emeco Holdings, Lynas Corporation and Pilbara Minerals.

Emeco increased its market capitalisation by 341 per cent to $1.11 billion, Lynas Corporation increased 302 per cent to $1.55 billion, and Pilbara Minerals increased 169 per cent to $1.5 billion.

In the top 100, there were even bigger gains — Tungsten Mining saw the biggest leap here with a massive 3,141 per cent market capitalisation boost from $10 million to $320 million.

Australian Mines and European Lithium were up 643 per cent and 469 per cent to $238 million and $115 million, respectively.

In terms of resource prices, there was also strong growth from June 2017 to June 2018. Copper was up 11.8 per cent to $US6,625/t; coking coal was up 35.9 per cent to $US197/t, thermal coal was up 40.7 per cent to $US114/t; nickel was up 58.6 per cent to $US14,823/t; and cobalt was up 29.7 per cent to $US77,500/t.

Uranium also pulled out of a three-year slump to post a 14.9 per cent growth to $US23/lb, while LNG saw the biggest increase among energy commodities, with an 87.3 per cent increase to $US10 for every one million British thermal units ($US10/mmbtu).

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