WA Index

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WA Index

Issue 198 | March 2021

Welcome to the 198th edition of the Deloitte WA Index, a monthly review of Western Australian stocks and indices.

The market capitalisation of Western Australian listed companies increased slightly by 0.7% in the month of February 2021, to close at $273.7bn. Global Indices trended in the same direction, also increasing in the month.

Download the list of WA’s top 100 listed companies, as of 28 February 2021, explore the sections below and if you do not currently receive our WA Index,  please register to be added to our distribution list.

Highlights:

If you have any questions in relation to the Deloitte WA Index please contact Dave Andrews.

As of 28 February 2021

Commodity review

  • Crude oil prices soared 16% during February, closing at US$63/bbl. Production cuts in Nigeria and Saudi Arabia resulted in the first Organization of the Petroleum Exporting Countries (OPEC) oil supply reduction in the last eight months. Furthermore, anticipated COVID-19 restriction easing and recovery of global economies through 2021 following the rollout of vaccines has strengthened oil demand, placing upwards pressure on prices.
  • LNG prices closed at US$6.20/mmbtu, representing a 30% reduction for the month arising primarily from increased LNG production in the US, which was previously disrupted earlier in 2021 due to freezing temperatures and outages across the region. Reduced demand from Asia late in February further contributed to the price decline, with excess LNG storages consumed as opposed to imported, following stockpiling of the commodity in January.
  • An increasingly positive outlook for economic recovery has negatively impacted the Gold price, which fell 6% to close the month at US$1,743/tonne. Vaccine rollouts and easing of COVID-19 induced restrictions have lifted risk sentiment in wider financial markets, with investors diversifying their portfolios away from the safe haven metal, adding further downwards pressure on the gold price.
  • Iron ore experienced a 10% price surge this month, closing at US$176/tonne, due to ongoing supply issues at Vale’s Brazilian operation amid slower Latin American recovery from COVID-19 related disruptions. Supply side pressures were compounded by strong demand driven by China’s sustained recovery and vaccine deployment in major economies.

Performance of WA Index and global indices

Performance of WA Index and global indices
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WA Index movement

WA Index movement
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Top performers of the month

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

  • Northern Star Resources Limited's market capitalisation increased by 25% following completion of the merger with Saracen Mineral Holdings Limited (Saracen). As per the scheme, all shares of Saracen have been transferred to Northern Star with a consideration of 0.3763 Northern Star shares for each Saracen share? held on the scheme date for eligible Saracen shareholders.
  • The market capitalisation of Lynas Rare Earths Limited also increased by 25% in February. The increase follows the release of the H1 FY21 results which reported a 941% jump in net profit compared to last year’s result, in line with the increase in price of neodymium and praseodymium used in the production of electric vehicles.
  • Piedmont Lithium Ltd's market capitalisation increased 24% due to the climb in the lithium price in February. Lithium prices reached an 18-month high in early February as a result of China’s heavy demand for lithium iron phosphate batteries. The company also announced the appointment of Todd Hannigan, an experienced mining company executive and former CEO of Aston Resources Limited, as Non-Executive Director of the company. His experience, skills and industry knowledge, with a focus on battery manufacturing, is expecting to be key in regards to Piedmont’s Lithium Project in the United States.
  • Over the month, the market capitalisation of Sandfire Resources Limited surged 28%. The rise follows the release of the H1 FY21 results which reported a NPAT of $60.8m, a 78% rise compared to last year, as well as an interim dividend of 8.0 cents. Sandfire Resources also entered into a farm-in agreement with CBH Resources, giving it the right to earn up to a 100% interest in the Endeavor Base Metal Mine and surrounding exploration tenements in NSW. Sandfire also announced the Final Investment Decision of US$259m in regards to the development of the T3 Motheo Mine in Botswana which represents a significant milestone for the company.

Major index players
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The top Deloitte WA Index Movers and Shakers in November were:

  • The market capitalisation of EcoGraf Limited increased by 128% due to the company’s successful completion of a capital raising. The $54.6m Institutional Placement will be used to accelerate the construction of the company’s Australian battery anode material facility, as well as advancing its battery anode material recycling programs.
  • MyFiziq Limited’s market capitalisation increased by 73%, mainly due to the announcement of the deal with China-based company Tinjoy Biotech Limited. The two companies have signed a binding term sheet, allowing Tinjoy to use MyFiziq’s CompleteScan platform within their digital health platform WinScan. Under the arrangement, MyFiziq will receive 70 per cent of the revenue and has an option to acquire up to 40 per cent of the WinScan Platform.
  • The market capitalisation of MGC Pharmaceuticals Ltd surged by 322% over the month, following the announcement of MGC Pharma to be become the first medicinal cannabis company to be listed on the London Stock Exchange. The company started trading on the LSE after successfully raising £6.5m (A$12m) through a share placement to several U.K. based investors.

Top performers of the month
Select above image to enhance the Top performers of the month

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.

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