WA Index

Issue 231 | January 2025

Welcome to the 231^st edition of the Deloitte WA Index, a monthly review of Western Australian stocks and indices.

Author:

Dave Andrews

Download the list of WA’s top 100 listed companies, as of January 2025

554 KB PDF

The aggregate market capitalisation of Western Australian listed companies soared during January, up 6.1% on the back of strong commodity prices in comparison to December, and a rise in Australian and international equity prices more broadly. The quarterly reporting season for the WA miners saw gold miners enjoying record prices, with gold companies featuring in our top performers for January.

Most global indices were also up, with the exception of the Nikkei, which lost ground on December after the Bank of Japan raised interest rates.

Download the list of WA’s top 100 listed companies, as of 31 January 2025, explore the sections below, and if you do not currently receive our WA Index, please register to be added to our distribution list.

Commodity review

Gold

Gold experienced a 7% increase since the beginning of January, rebounding after a sell-off in December 2024. The increase triggered by tech-led market sell-off, and increasing uncertainties over U.S. President Donald Trump's proposed tariffs which fueled fears of higher inflation and the limits on the Federal Reserve’s ability to reduce interest rates.

Uranium

Uranium prices declined 6% due to a combination of easing supply concerns and reduced speculative activity following last year’s price surge. After reaching a 16-year high of $106 per pound, prices have settled around $71 per pound as fears over supply disruptions, such as Kazakhstan’s sulphuric acid shortage, have diminished. Additionally, while demand for uranium remains strong due to a global push for nuclear energy, market uncertainties, including potential U.S. tariffs on Canadian uranium and geopolitical tensions affecting Russian enrichment supplies, have contributed to the decline.

Zinc

Zinc prices have fallen 9% in January, primarily due to improving supply conditions. While zinc mine production was down for three straight years through 2024, monthly production began increasing toward the end of the year. The International Lead and Zinc Study Group (ILZSG) forecasts a strong recovery in mine supply for the coming year due to new mines opening and previously idle facilities restarting.

Cobalt

Cobalt prices have dropped 12% due to a surge in supply, primarily driven by China's CMOC Group, which increased production from its massive copper mines in the Democratic Republic of Congo. As cobalt is mainly a by-product of copper and nickel mining, producers continue to extract large volumes, especially with copper prices remaining strong. Additionally, demand growth has slowed, particularly in the EV sector, where battery manufacturers are shifting toward cobalt-free or low-cobalt batteries to cut costs and address ethical concerns.

Performance of WA Index and Global indices

Top 20 performers of the month:

Emerald Resources NL (ASX:EMR): Emerald Resources saw a 33.2% increase in market capitalisation in January. The company reported record gold production of 31.9Koz at its Okvau Gold Mine, exceeding the upper range of quarterly sales guidance, whilst also benefitting from soaring gold prices. Completion of the Stage 2 extension at Mermot Gold resulted in an upgraded estimate for mineral resources of 19.5Mt at 1.65 g/t Au for 1 million ounces. Additionally, Emerald Resources successfully divested the Southern Cross Gold Project, securing a 20.5% equity stake in Golden Horse Minerals as part of the company's A$18 million IPO.

Genesis Minerals Ltd (ASX:GMD): Genesis Minerals experienced a 29% increase in market capitalisation on the back of strong production and gold prices. The ramp-up post the restart of the Laverton mill has exceeded expectations, with record gold production in the quarter, and AISC at the lower end of guidance at $2,202/oz. Genesis also saw strong cash generation from quarterly gold sales of 49,643oz.

Capricorn Metals Ltd (ASX:CMM): Capricorn Metals achieved a record quarterly cash flow from operations during the recent quarter. Development of the Karlawinda Project continued, with pre-stripping works commencing, and the mill expansion project approved, increasing capacity to 6.5mtpa. Also of note was the strong growth in Mt Gibson reserve estimates up 41% from April.

The Top 100 performers of this month were:

Canyon Resources Limited (ASX: CAY) Canyon Resources achieved significant milestones including completion of its RC and Diamond Drill Program across the Minim Martap, Makan, and Ngaoundal tenements. This program marks a crucial step in the development of the Minim Martap Bauxite Project.

Boss Energy (ASX: BOE) Boss Energy ramped up production through the quarter, feeding into higher uranium pricing. Further, commercial production was declared at Honeywell in January, with guided production at 850,000 pounds of U308 for FY25. Boss Energy ended the quarter with total liquid assets of AUD $252 million, and no debt.

Catalyst Metals (ASX: CYL) Catalyst Metals produced 28,397 oz of gold during the quarter, with cash and bullion increasing to A$84 million, becoming debt free. Exploration continued on in mine, and near mine targets, with results at Hermes including 16m at 10.6g/t Au. Plans are underway to double production at Plutonic, with new mines and processing plant throughput expected to reach nameplate capacity in the next 12-18 months.

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