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WA Index

Issue 211 | October 2022

Welcome to the 211th edition of the Deloitte WA Index, a monthly review of Western Australian stocks and indices.

The aggregate market capitalisation of Western Australian listed companies declined by 6.7% during the month of September - to close at $293.6 billion. The sell-off was in sync with other global markets as the S&P 500, All Ordinaries, FTSE 100, & Nikkei all experienced sharp retractions in response to continued inflation pressures and rising interest rates across the globe.

Download the list of WA’s top 100 listed companies, as of 30 September 2022, explore the sections below, and if you do not currently receive our WA Index, please register to be added to our distribution list.

If you have any questions in relation to the Deloitte WA Index please contact Dave Andrews.

The month of September saw most commodities struggle to hold ground, with both supply and demand side fears causing uncertainty within the broader commodities market. Notable movements included.

  • LNG experienced a 28% decrease through September, driven primarily by greater European imports of gas and increases in EU gas storage levels, which currently sit at more than 88% full. Expectations are for tighter prices as Europe enters winter and its storage begins to deplete.
  • Zinc finished 15% lower from the previous month, due to curtailed production capacity across Europe due to the current energy crisis for the region, resulting in less ability to smelt zinc. China’s stagnant property sector has further resulted in lower demand for zinc.
  • Oil prices fell 10% during September due to declining demand, despite a late spike in prices following the rupturing of the Nord Stream pipelines in Europe and decreasing inventories in the US.

Western Australian top performers over the past month by growth in market capitalisation

  • Pilbara Minerals Limited’s (ASX: PLS) market capitalisation increased by 25% through September following the announcement of the company’s 9th BMX auction results which saw company accept the highest bid of US$6,988/dmt for its 5,000dmt lithium spodumene concentrate.
  • DeGrey Mining Ltd (ASX: DEG) experienced a 6.1% increase in market capitalisation following the announcement of the outcome of the company’s pre-feasibility study for its Mallina project, with an average total annual gold production of 540,000 oz/pa expected over the project’s first 10 years.
  • Mineral Resources Ltd (ASX: MIN) saw a 2.9% increase in market capitalisation over the month, amidst speculation regarding the potential spin-out of its lithium business, in addition to the company announcing a further acquisition of $12.6 million (8%) worth of Global Lithium Resources (ASX: GL1) shares.

The top Deloitte WA Index Movers and Shakers in September were:

Mallee Resources Limited (ASX: MYL) saw an increase in market capitalisation of 89.4% following the announcement of the completion of a $7.7m capital raising, which the company purports, will enable them to fund the final stages of the development of its Avebury nick project.

Global Lithium Resources Limited (ASX: GL1) increased its market capitalisation by 27.9%, to close at $442.49 million following the announcement of high-grade lithium intercepts at its Manna Project, with several mineralised trends extending over a 5km x 1.5km area. In addition, Mineral Resources (ASX: MIN) announced that it was increasing its holdings to 8% of GL1, news that the market reacted positively to.

Lindian Resources Limited (ASX: LIN) market capitalisation increased 22.6% to close September at $275.71 million. During the month, shareholders voted in support of the acquisition of the Kangankunde Rare Earths Project in Malawi. The project will provide LIN the chance to diversify its existing Bauxite focus in Guinea.

If you don’t currently receive our WA Index, you can register to be added to our distribution list.
If you have any questions in relation to the Deloitte WA Index please contact Dave Andrews.

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