Cameco, Glamis on TSE 300, Dickenson dropped from index

Mining companies continue to suffer the effects of weak metal prices and the economic downturn, as indicated by The Toronto Stock Exchange’s decision to drop six issues from its composite 300 index, Feb. 3.

Victims of the index committee’s annual review of trading activity, they include Hudson Bay Mining and Smelting (TSE), Campbell Resources (TSE), Dickenson Mines (TSE) Class A, Breakwater Resources (TSE), Galactic Resources (TSE) and MinVen Gold (TSE).

Their names are being axed because they fail to meet the criteria established by the TSE and a review committee which monitors the performance of listed companies at the end of each year.

Saskatchewan uranium miner Cameco (TSE) and Vancouver-based gold miner Glamis Gold (TSE) are the only mining stocks among the 19 issues being added this year to the composite 300. While Glamis returns to the index just one year after it was removed, the number of mining and precious metals issues listed on the 300 drops to 40 next month from 44.

Companies listed on the TSE 300 are ranked according to their 3-year average quoted market value, a figure calculated by taking the trade-weighted average price of the shares for each of the three 12-month periods prior to the review, multiplied by the float outstanding at the end of each year. Any stock that is ranked lower than 325 in terms of quoted market value is automatically replaced by the stock that has taken its place within the top 300. Stocks that are not already included on the TSE 300 but rank more highly than 275 within the eligible pool are eligible to replace TSE 300 stocks displaced from the largest 300.

While shares of Cameco only began trading after the initial public offering in July, they qualify for inclusion on the TSE 300 by virtue of their ranking in the top 150 of composite index stocks.

All of the six blue chip mining stocks listed on the TSE’s 35 index will remain in place this year following a year-end review. They include Inco (TSE), Noranda (TSE), Placer Dome (TSE), Teck (TSE) class B, LAC Minerals (TSE) and Echo Bay Mines (TSE).