The market capitalisation of Western Australia’s listed entities climbed 3.7% over the past financial year to A$362.7-billion, buoyed by soaring gold prices and a wave of mergers and acquisitions, according to a special Diggers & Dealers edition of the Deloitte WA Index.

The yearly snapshot of Western Australia’s resource-heavy economy revealed sharp divergences across commodities, with gold surging to record highs amid global political instability, while lithium and nickel stocks sagged under the weight of weaker demand and oversupply.

“Given gold is having such a strong run, it’s logical that of the $362.7-billion WA market capitalisation, $55.4-billion comes from nine gold producers sitting in the Top 20,” said Nicki Ivory, Deloitte national mining and metals leader. “In a world of uncertainty, gold remains the safe haven investment choice.”

Nine of the top 20 companies in the Index are gold producers — up from six the previous year — reflecting the shift in investor appetite. Among the top performers were Regis Resources, whose market cap soared 150%, and Genesis Minerals, up 147% for the year to June 30.

Deals in the gold sector dominated the year’s headlines, including tie-ups between Westgold and Karora, Red 5 and Silver Lake (now Vault Minerals), Northern Star and De Grey Mining, and Ramelius with Spartan Resources.

“The acquiring miners have seen sizeable increases in their scale and market capitalisation,” said Deloitte audit and assurance partner Ian Skelton. “Deals at the beginning of the year, which were thought to be expensive at the time, are now paying back shareholder confidence as the gold price continues its ascent. It leaves us asking the question: ‘Who will be next?’.”

The WA Index also spotlighted the emergence of geopolitical defence contractor Austal, which took the top spot in the Top 20 after its market cap surged 193% amid increased defence spending globally.

“Taking out the top spot in the Top 20 is Austal Limited which, like the gold producers, has seen a substantial market re-rating following the global geopolitical turmoil of the past year,” Skelton said.

In contrast, lithium and nickel miners struggled. IGO slipped from ninth to sixteenth in the rankings, while Liontown Resources fell from eighteenth to twenty-eight as negative global supply and demand dynamics dragged on valuations.

Still, the biggest gains were reserved for smaller players. Metallium led the Top 100 with a staggering 2 912% increase in market capitalisation, followed by Antipa Minerals (up 866%) and Larvotto Resources (up 854%).

The Index paints a picture of a “five-speed economy", Deloitte said, underscoring the challenges and opportunities of operating in a resource-driven state as commodity cycles diverge sharply.

“With commodity volatility comes opportunity,” said Skelton.