TSX goes global with gold index (January 22, 2007)

To suit its beefed-up list that now includes non-Canadian gold companies, the S&P-TSX Capped Gold Index was renamed the Global Gold Index on Dec. 18.

The list was increased to 30 gold mining companies from 18 and now includes the world’s second, third and fourth biggest gold producers: United States-based Newmont Mining (NEM-N, NMC-T), and South Africa-based AngloGold Ashanti (AU-N) and Gold Fields (GFI-N).

The world’s biggest gold miner, Toronto-based Barrick Gold (ABX-T, ABX-N) and the third-largest producer by market capitalization, Vancouver-based Goldcorp (G-T, GG-N) are among the 22 companies headquartered in Canada that are on the list.

The Global Gold Index is now positioned to compete with the American Stock Exchange’s Gold Miners Index, but that wasn’t the original idea behind the change.

“The TSX wanted to have (Amex) participate and they wouldn’t,” says Tony North, director of index operations at S&P Canadian index services.

North says Amex management didn’t want to dilute the Amex gold miners’ index by the Global Miners Index.

The new index will give index fund buyers access to the major gold players while giving smaller gold firms more exposure.

Global Gold Index (* = new additions): Agnico-Eagle Mines (AEM-T, AEM-N), AngloGold Ashanti (AU-N)*, Alamos Gold (AGI-T), Aquiline Resources (AQI-T)*, Aurizon Mines (ARZ-T)*, Barrick Gold (ABX-T, ABX-N), Bema Gold (BGO-T), Centerra Gold (CG-T), Crystallex International (KRY-T), Cumberland Resources (CLG-T)*, Durban Roodepoort Deep (DROOY-Q)*, Eldorado Gold (ELD-T), Gabriel Resources (GBU-T), Gold Fields (GFI-N)*, Goldcorp (G-T), Golden Star Resources (GSC-T), Harmony Gold Mining (HMY-N)*, Iamgold (IMG-T), Kinross Gold (K-T), Lihir Gold (LIHR-Q)*, Meridian Gold (MNG-T), Miramar Mining (MAE-T), Newmont Mining (NEM-N)*, Northgate Minerals (NGX-T)*, NovaGold Resources (NG-T), Randgold Resources (RGLD-Q)*, Rio Narcea Gold Mines (RNG-T)*, Royal Gold (RGLD-Q)*, Silvercorp Metals (SVM-T)*, and Yamana Gold (YRI-T).

Companies removed from the list were: Southwestern Resources (SWG-T) and Tanzanian Royalty Exploration (TNX-T).