By Cameron Drummond

WA companies are prospering off a commodity rebound, with Fortescue Metals Group (FMG), Pilbara Minerals (PLS) and Resolute Mining among a group recording market cap increases.

The Deloitte WA Index rose in April with the market capitalisation of WA-listed companies increasing by 9 per cent to $136.2 billion.

Deloitte Clients & Markets Partner WA Tim Richards said the index’s performance was boosted by the month’s strong commodity prices.

“April’s result, which follows a 5.9 per cent rise in March, was primarily driven by crude oil reaching its highest price in 2016 and iron ore climbing to US$64.50 per tonne at the end of the month,” Mr Richards said.

“This spurred on investors, as demonstrated by the market capitalisation of resource heavyweights Fortescue Metals Group, South32, and Woodside Petroleum which increased by 33.7 per cent, 13.3 per cent and 11.6 per cent respectively.”

FMG’s market cap increased by 33 per cent ($2.7 billion) with favourable investor response to on-going cost reductions alongside stronger iron ore prices.

Resolute Mining increased its market cap by 80.6 per cent ($280 million) after announcing strong cash and bullion positions worth $90m, and reducing quarterly losses from $22m to $2m in the same month.

Strong interest for lithium has fast-tracked the development of Pilbara Minerals’ Pilgangoora project, with the company announcing an $80m equity raising to fund development.

A year ago, PLS traded at 3.5 cents per share; this has increased more than 2000 per cent to sit at 75 cents per share as of 10 May.

Deloitte cited three other WA movers for April, with Eden Energy enjoying a 165.8 per cent market cap increase on the back of a $US25 million financial package to establish a new plant in the US state of Georgia.

Perseus Mining’s market cap increased 119 per cent to $465m after the West African gold miner updated its mine-life plans, while Gascoyne Resources saw a MC 109.2 per cent rise to $149m following a successful $15m share placement.