NYSE Euronext has enhanced the methodology for the NYSE Arca Gold Miners Index (GDM).
For the first time ever, the index will include non-US listed companies and set a minimum market capitalisation requirement of USD750m for component companies. The changes will be enacted at the next index rebalance effective before the open on 23 September 2013.
“The NYSE Arca Gold Miners Index is the leading benchmark covering the gold mining industry for the community of market participants and exchange traded product issuers on our exchange,” says Dwijen Gandhi, managing director, global index and exchange-traded products. “These changes are indicative of the growing demands by clients who want exposure to a global universe of larger-cap gold mining companies.”
The NYSE Arca Gold Miners Index is a modified market capitalisation weighted index comprised of publicly traded companies primarily involved in the mining of gold and silver in locations around the world.
Below are the key changes to the NYSE Arca Gold Miners Index methodology:
• Access to non-US listed companies, ensuring component diversity and international exposure;
• New index components must have a minimum of USD750m in market capitalisation;
• Prioritisation of US cross-listings, American Depository Receipts and Global Depository Receipts for international companies;
• Implementation of a buffer zone around the USD750m market capitalisation and other trading requirements to reduce turnover during quarterly rebalances.
The rebalance and methodology changes will result in the following companies being added to or deleted from the NYSE Arca Gold Miners Index effective for 23 September 2013:
Additions – Alacer Gold Corp, Alamos Gold Inc, Argonaut Gold Inc, Centamin PLC, Detour Gold Corp, Dundee Precious Metals Inc, Dundee Precious Metals Inc, Franco-Nevada Corp, G-Resources Group Ltd, McEwen Mining Inc, Newcrest Mining Ltd, Osisko Mining Corp, Sibanye Gold Ltd, Zhaojin Mining Industry Co Ltd, and Zijin Mining Group Co Ltd.
Deletions – Allied Nevada Gold Corp, Golden Star Resources Ltd, Seabridge Gold Inc, Silver Standard Resources Inc, Tanzanian Royalty Exploration Corp and Vista Gold Corp.
