Skip to main content

WA Index

Issue 210 | September 2022

Welcome to the 210th edition of the Deloitte WA Index, a monthly review of Western Australian stocks and indices.

The aggregate market capitalisation of Western Australian listed companies continued to increase over the month of August – up 5.4% - to close at $314.0 billion. The increase was impressive considering the weakness in global markets. A primary contributor was positive market sentiment surrounding lithium, with WA lithium companies also well represented in the top company movers this month.

The Index outperformed global markets which had mixed results in August. The Nikkei and Australian All Ordinaries were up 1.0% and 0.7% respectively, while other markets were weaker, with the S&P 500 and FTSE 100 down 4.2% and 1.9% respectively amidst further inflation fears.

Download the list of WA’s top 100 listed companies, as of 31 August 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.

August saw energy commodities on top, with declines experienced across much of the broader commodity markets. 

  • Thermal coal finished 8% up from the previous month, due to a reduction in Chinese, Russian and Indonesian suppliers selling aggressively into the market. The full ban on Russian coal into the European Union also came into effect in August, further limiting supply to the market.
  • LNG experienced a 20% increase through August, driven primarily by the EU’s move away from Russian natural gas. This drove increased demand on the Asian market, and continuing higher Asian spot prices, as European counties looked elsewhere to meet their supply needs
  • Gold prices fell 3% during August, despite increases in demand from “flight-to-safety investors” boosting inflows into gold exchange traded funds. However, increased inflation and a robust US dollar also held the price down. 
  • Nickel prices reduced 15%, despite rising long-term demand for the commodity in the EV battery space. This was attributable partly to Indonesia, the supplier of approximately half of all global nickel production, announcing a planned export tax on its processed nickel products. Further, long-term price projections have reduced as production across Australia and other markets ramps up to meet supply. Australian supply is expected to grow 28.9% in 2022, easing supply pressures.
  • Iron ore softened 17% in August owing largely to China's economic slowdown. A range of pressures in China such as warmer weather and electricity rationing led steel mill production shutdowns. Further, continuing strict covid-19 restrictions are still impacting the market, while iron ore stockpiles have reportedly reached 138.6 million tonnes, a three-month high.
  • Tin prices dropped 9% due to a ramp up in production globally and lower demand from major end-user sectors such as electronics. China’s strict COVID-zero programs reduced demand, while recession sentiment impacting fiscal and monetary policies across the globe is furthering downward pressure on tin, and industrial metals more broadly.

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

Pilbara Minerals Limited’s (ASX: PLS) market capitalisation increased 32% through August on the back of its June 2022 full-year results release, which showcased a 577% increase in revenue to $1.2 billion and EBITDA of $814.5 million. The company also announced the results from its recent auction held on its Battery Material Exchange (BMX) platform, and acceptance of the highest bid of ~US$7,012/dmt.

Liontown Resources Ltd (ASX: LTR) experienced 31.7% market capitalisation growth during August, in part due to the booming market for lithium as investors speculated over the prospects of the company’s world-class Kathleen Valley lithium project which is currently in development.

IGO Limited (ASX: IGO) saw a 21.8% increase in market capitalisation over the month, attributed to positive L ake Mackay drilling results and the release of the company’s FY22 results which flagged an underlying EBITDA of $717 million.

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

Deep Yellow Limited (ASX: DYL) saw a 191.5% increase in market capitalisation to close at $852.45 million in August. The increase was due in large part to the completion of its merger with ASX-listed Vimy Resources and positive results from its recent quarterly reports. The merger with Vimy consolidated the Tumas project in Namibia and the Mulga Rock project in South Australia under one portfolio, the combined value of which has placed Deep Yellow as one of the world's foremost pure-play uranium producers.

Latin Resources Limited (ASX: LRS) increased its market capitalisation by 47.8%, to close at $224.3 million. The company delivered a strong performance in its June quarterly reports, with assay drilling at its Salinas project in Brazil confirming high-grade lithium deposits. In addition, Latin Resources announced significant lithium deposits discovered west of its Colina Lithium Project, also in Brazil.

Perenti Global Limited’s (ASX: PRN) market capitalisation increased 34.9% to close August at $544.99 million. Parenti’s reported a 21% increase in revenue for FY22, and 15.2% increase in net cash flows. Mid-August also saw Sumitomo acquire 10% of Perenti's idoba business, which focuses on a technology-enabled innovation ecosystem to solve complex problems.

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.

Did you find this useful?

Thanks for your feedback

If you would like to help improve further, please complete a 3-minute survey