Deloitte WA Index: weathering the storms has been saved
Deloitte WA Index: weathering the storms
Diggers and Dealers special report shows gold miners powering ahead.
5 August 2019: The notional value of West Australian-based listed companies has closed at an aggregate value of AU$190.9bn. The Deloitte WA Index remains above AU$190bn for only the second time since May 2011 and comes off the back of two years of spectacular growth of 13.5% and 26.8% in 2017 and 2018 respectively.
Adjusting for the impact of the $17bn demerger of Coles from the Wesfarmers group in November 2018, the Deloitte WA Index rose 7.5% compared to the All Ordinaries 6.5% growth.
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 2019 financial year reflected significant price increases in two of the state’s most economically important commodities, iron ore and gold.
“Global uncertainty driven by events such as Brexit and US-China trade wars put renewed focus on the gold sector with prices soaring over AU$2,000/oz by year’s end, a record, and with WA accounting for around 70% of the nation’s production, it’s the natural home of Australian gold.
“Meanwhile the catastrophic dam failure in Brazil along with falling production in China has seen the iron ore sector riding a bull market with an 82% leap in the benchmark spot price this year.
“But not everyone can be a winner,” he said. “The global uncertainty over trade and tariff wars has resulted in more half the commodities surveyed in the Deloitte WA Index recording a price decline over the past 12 months. Additionally, investors remain cautious and continue to hold companies to account, with missed production targets meeting some savage responses from the market.”
Mr Andrews said: “Still it’s certainly not doom and gloom down under thanks to favourable US dollar currency adjustments and the Reserve Bank of Australia’s own commodity price index showing we remain on an upward trend.”
Deloitte WA Index High Growth Awards 2019
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 2019. They are:
- Silver Lake Resources Limited: increased market capitalisation by 240% from AU$302m to AU$1,027m
- Mount Gibson Iron Limited: increased market capitalisation by 141% from AU$386m to AU$1,151m
- Fortescue Metals Group Limited: increased market capitalisation by 103% from AU$13,664m to AU$27,759m.
Deloitte will also recognise the three largest WA Index top 100 movers, in terms of market capitalisation growth, for the same period. They are:
- Bellevue Gold Limited: increased market capitalisation by 417% from AU$68m to AU$351m
- Liontown Resources Limited: increased market capitalisation by 396% from AU$31m to AU$153m
- Walkabout Resources Limited: increased market capitalisation by 234% from AU$40m to AU$135m.