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WA Index

Issue 206 | March 2022

Welcome to the 206th edition of the Deloitte WA Index, a monthly review of Western Australian stocks and indices.

The market capitalisation of Western Australian listed companies fell slightly – by 0.2% over the month of February 2022, to close at $306.9 billion. The small decline was consistent with most global markets, which saw pullbacks over the month. The Nikkei & S&P 500 was down 1.8% & 1.3%, and the All Ordinaries closed with a modest 0.8% gain, despite stark pullbacks late in the month following increasing tensions between Russia and Ukraine.

Download the list of WA’s top 100 listed companies, as of 28 February 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.

Top 20 performers of the month

  • Silver Lake Resources Limited (ASX: SLR) saw the largest increase in the top 20 WA Index listed entities during February, surging 28%. The increase was driven by the acquisition of Harte Gold Corp, producing a 100% interest in the Sugar Zone mine and associated land package in Canada’s northern Ontario gold district.
  • Perseus Mining Limited’s (ASX: PRU) market capitalisation increased 25% in February, following the release of half-year results. Key highlights included a profit after tax figure of $126.9m (up 159%) and achieving a targeted production rate of 500,000ozpa. Perseus also announced it had entered into an agreement to acquire 100% of Orca Gold Inc’s outstanding common shares (Perseus previously held a 15% interest).
  • South 32 Limited (ASX: S32) saw a 25% increase in market capitalisation for the month of February, off the back of a record dividend declaration to shareholders of US$8.7c/share. The company reported a half-year net profit of US$1,032 million.

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

  • Carnaby Resources Limited (ASX: CNB) has moved into the WA Index Top 100 in February, up 39% in market capitalisation following the release of details of a significant copper discovery at its Nil Desperandum Prospect in Mt Isa, Queensland.
  • NRW Holdings Limited’s (ASX: NWH) market capitalisation surged by 34% in the month of February, off the back of a 5.5c/share interim dividend declaration and strong financial performance delivered across its projects. The company reported an operating EBIT of $74.6m, up 25% on the prior comparative period.
  • Red Hill Iron Limited (ASX: RHI) has also snuck into the Index Top 100, increasing market capitalisation by 29% following the release of a progress report on its RHIOJV project, providing confidence in relation to the receipt of consideration payments along with royalty streams expected to commence upon first production, anticipated March 2024.

Commodity review

Thermal coal, crude oil, lithium, aluminium, silver and nickel were the biggest movers this month, with coking coal and iron ore falling flat.

  • Thermal coal ex Newcastle prices were up 24%, closing at US$251.5/T due primarily to the conflict between Russian and Ukraine. With many European countries dependent on Russia for their coal supply, countries are scrambling to source global coal cargo, resulting in a surge in demand and price.
  • Crude oil closed at US$100.8/b (12%). Global supply remained low, with increased demand as economies recover from the lows seen during the Covid-19 pandemic. The conflict between Russia and Ukraine also saw a further tightening of supply, with Russia, a major oil supplier, expected to disrupt supply in retaliation for sanctions imposed by many countries.
  • Lithium carbonate increased 11%, to close at US$53,750/dmt. The increase was attributable to high demand globally, with battery-grade lithium carbonate a critical input for elective vehicle lithium batteries. The push for EVs globally has resulted seen lithium carbonate suppliers struggle to meet ever-increasing demand.
  • Aluminium saw an increase of 9% in February, closing at US$3,388/T. Sanctions imposed on Russia in relation to the Ukraine conflict have resulted in a reduction in aluminium supply, increasing the price of the metal.
  • Silver prices increased 9%, to close at US$24.2/Oz on the back of increased demand for the precious metal with its growing utilisation in green technologies. Uncertainty over the Ukraine conflict also helped silver pricing in line with the increase in the gold price.
  • Nickel’s price closed at US$22,661/LB, increasing 8% in February. Demand for nickel in the manufacture of EV batteries has led to shortages of the metal. Russia is also a major producer, and the situation in Ukraine has created uncertainty around potential supply impacts.

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