Deloitte WA Index: highest value since 2011
6 August 2018: The value of Western Australian-based listed companies soared 26.8% during the 2018 financial year, closing at an aggregate value of AU$193.5bn.
It’s the first time the Deloitte WA Index has been above AU$190bn since May 2011 and comes off the back of two years of growth of 1.8% and 13.5% in 2016 and 2017 respectively.
Releasing the special edition of the Deloitte WA Index at the Diggers & Dealers Mining Forum in Kalgoorlie today, Dave Andrews, Deloitte Western Australia Assurance and Advisory partner said the 2018 financial year had been strong with gains reported across a number of locally important commodities.
“Price appreciation in key energy-linked commodities such as liquefied natural gas (LNG), crude oil, and thermal coal really stood out this year thanks to growing energy demand throughout China and Asia, and the continued focus toward cleaner energy solutions,” he said.
“Additionally, battery metals, particularly nickel, cobalt and copper, and rare earths showed strong momentum on the excitement surrounding battery storage demand, the expanding electric vehicle (EV) market, renewables, and our hunger for more and more consumer technology.”
Andrews added: “The amount of technology and data being assumed into our everyday lives is growing at exponential rates. With the urbanisation of the global population expected to gain pace over the coming years, it’s hard to see this longing for tech-led convenience showing any signs of dissipating.
“Not surprisingly, numerous companies in the WA Index with ties to these commodities and industries have delivered exceptional returns for shareholders this year, and they are well represented across our Index high growth awards list for 2018.”
Deloitte WA Index High Growth Awards 2018
At Diggers & Dealers, Deloitte will recognise the top three movers in the WA Index top 20, in terms of market capitalisation growth, for the year ended 30 June 2018. They are:
- Emeco Holdings Limited: increased market capitalisation by 341% from AU$253m to AU$1,113m
- Lynas Corporation Limited: increased market capitalisation by 302% from AU$386m to AU$1,550m
- Pilbara Minerals Limited: increased market capitalisation by 169% from AU$557m to AU$1,500m.
Deloitte will also recognise the three largest WA Index top 100 movers, in terms of market capitalisation growth, for the same period. They are:
- Tungsten Mining NL: increased market capitalisation by 3,141% from AU$10m to AU$320m
- Australian Mines Limited: increased market capitalisation by 643% from AU$32m to AU$238m
- European Lithium Limited: increased market capitalisation by 469% from AU$20m to AU$115m.
Key commodities and precious metals highlights from the 2018 financial year:
- LNG was the star player, with a price increase of 87.3% to US$10/mmbtu; indicative of an expanding energy sector eager to engage the shift to cleaner sources
- Burgeoning infrastructure building programs, population growth and economic development across Asia sent the prices of coal skyrocketing. Coking coal finished the year 35.9% higher than June 2017 at US$197 per tonne and thermal coal finished 40.7% higher at US$114 per tonne
- Uranium broke out of a three-year downtrend, improving by 14.9% to US$23/lb having benefitted from a number of high profile supply cuts by major producers as a result of unsustainably low prices
- Copper enjoyed another fruitful year, up 11.8% to US$6,625/tonne, with strong demand driven by EVs production and the wider acceptance of copper piping as a cleaner option for water transport over lead
- Nickel (+58.6% to US$14,823/tonne) and cobalt (+29.7% to US$77,550/tonne) all posted strong growth due to increasing demand for battery technology and broader consumer technologies.