WA Index

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.

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.