The value of Western Australia’s top 100 listed mining stocks, measured by the Deloitte WA Mining Index, has increased 47 per cent during the past 12 months.
The value of Western Australia’s top 100 listed mining stocks, measured by the Deloitte WA Mining Index, has increased 47 per cent during the past 12 months.
Revealing some stand-out performers across a range of minerals, the index also highlights a number of changes in the make-up of the list over the five years it has been following WA’s miners.
Deloitte partner Peter McIver said the index had outperformed other key indices during the past year.
“Over the past 12 months, the total value of WA-listed mining stocks has increased 47 per cent versus the ASX 300 Resources Index growth of 40 per cent, and has more than doubled the ASX All Ordinaries growth of 23 per cent,” he said.
Impressive gains were made by mineral sands player Iluka Resources, which increased its market capitalisation by $872 million, diversified miner Consolidated Minerals, up $627 million, and uranium player Paladin Resources, which was up $626 million.
The value of Fortescue Metals Group was marketdly higher, while nickel producer Jubilee Mines increased $481 million.
The highest ranked company of the past year, Iluka, revealed major discoveries at its mineral sands projects around Australia. Consolidated Minerals made the major purchase of Reliance Mining, moving to compulsory acquisition in March. Despite admitting an increase in the capital cost of its 45 million-tonnes-a-year Pilbara iron ore project, FMG increased its market capitalisation by $588 million, upgrading resource estimates three times, and raising $120 million by issuing share and convertible notes.
However, the Andrew Forrest-backed company was, at one stage, worth almost $1.2 billion.
Most minerals have enjoyed strong growth in prices during the year, with increases negotiated by major iron ore producers, and other metals benefiting from higher world prices.
Uranium, for example, is worth almost $US30 a pound, up from about $US10 two years ago.
Reflecting the continued strength of the nickel price, which has abated somewhat from its record in April of just under $US18,000 a tonne to be currently trading at about $14,500 a tonne, the state’s nickel majors have stamped their authority on the top 10.
Listed in Australia, Canada and Britain, Toronto-based LionOre Mining International’s Australian equity is worth $1.6 billion, with Jubilee Mines valued at just over $1 billion. Minara Resources’ market cap dropped $94 million in the month of July, however, to its current $874 million.
Back in the field are a cluster of mid-sized nickel players around the 30 ranking, with Independence Group at 26, Mincor 28, Sally Malay at 29 and Heron Resources 33.
The index also reveals some telling comparisons in the five or so years since it started, with some big movers in the field of WA-based stocks.
In May 2000, the company with the highest ranking was Homestake Mining Company, which was de-listed in 2001, following a merger with Canadian-based Barrick Gold.
Paladin Resources has risen to seven on the list from its position of 114 in 2000. Just behind Paladin is Fortescue at eight, moving up from 125 since the index began tracking.
The top 10 also contained a number of specialist gold players, all of which have moved out of the current list. Among these, DRD fell from four to 12, with Sons of Gwalia, which was ranked third, disappearing completely, following voluntary administration proceedings earlier this year.
Reflecting increased depth in WA’s mining stocks, at the end of May 2000, ninth-placed Portman was worth $124 million.
Today, the miner in that position, Aquarius Platinum, is worth $591 million.
In all, the value of the top 10 companies has grown from $4.86 billion in May 2000, to $9.32 billion.
