Welcome to the 2019 Diggers & Dealers edition of the Deloitte WA Index. This year the market capitalisation of Western Australian listed entities closed at AU$190.9 billion. Adjusting for the demerger of Coles from Wesfarmers in November 2018, the underlying performance of the WA Index again outperformed broader indices, returning over 7.5% growth.
Deloitte at Diggers & Dealers
This is Deloitte’s 27th year as a proud sponsor of Diggers and Dealers 2019. Held annually in Kalgoorlie, regional Western Australia, Diggers and Dealers is a leading annual mining conference which draws delegates from across the mining, exploration and professional services industries and includes presentations by listed mining and exploration companies.
Attending Diggers and Dealers? Please visit us at booth 7, we’d love to chat!
In an interesting twelve months, 2019 delivered an assortment of outcomes across markets, economies and commodities. Global investors continued to grapple with a raft of uncertainty, heightened by ongoing (and escalating) US-China trade wars and the UK parliament’s Brexit plans still in limbo.
The Brexit stalemate weighed on the FTSE100 which fell 2.8% during the year while the S&P500 accomplished a notable 8% increase, achieving record highs thanks to gains of 35% in the US technology sector. The Nikkei fell 4.5% on global competition shift in the consumer electronics market. Macro flow-on effects of a strengthened US dollar and reduced global trade activity have also led to varying degrees of commodity price volatility throughout the year.
On the domestic front, the All Ordinaries had a good year, up 6.5%. In comparison, the Deloitte WA Index – when adjusted for the impact of the AU$17 billion Coles demerger from Wesfarmers – shows more than 7.5% growth.
Price increases in two of the state’s most economically important commodities, iron ore and gold, coupled with the strong US dollar, proved a winning combination for WA market participants.
Notably, it was toward the end of the year under review local markets really energised – iron ore breaking through US$100/t and Aussie dollar gold prices tipping A$2,000/oz – nothing like breaking a gold price record to create some excitement!
Top Movers and Shakers
This year at the Diggers & Dealers conference we recognise the top three movers in the WA Index top 20, in terms of market capitalisation growth, for the year ended 30 June 2019 – Silver Lake Resources Limited, Mount Gibson Iron Limited and Fortescue Metals Group Limited.
We also recognise the largest three movers of the WA Index top 100, in terms of market capitalisation growth, for the year ended 30 June 2019 – Bellevue Gold Limited, Liontown Resources Limited and Walkabout Resources Limited.
Congratulations to all six winners on their achievements over the past year.
Mining: What story are we telling? Let’s change the conversation – interview with Former Chief of Australian Army Lieutenant General David Morrison AO; how the army initiated ground-breaking change, plus discover some practical things we can do and say to shift the conversation about mining.
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If you have any questions in relation to the Deloitte WA Index please contact Dave Andrews.
View past year issues of the Deloitte WA Index Diggers and Dealers Special Edition: