AZK/MNG/
CMM.V/IPT.V/MUG.V[EXL.TO]
Today from Bill Cara:
The Amex Goldminer’s Index (AMEX: GDM) is a market cap weighted index of gold and silver producers that are listed on the AMEX and NYSE. GDM is about to become an ETF.
All the biggest U.S. listed goldminers are there, including Newmont (NEM), Barrick (ABX), AngloGold Ashanti (AU), Goldfields (GFI), Goldcorp (GG), Glamis Gold (GLG), Kinross (KGC) Freeport-McMoRan Copper & Gold (FCX), and Harmony Gold (HMY).
But so too are much smaller goldminers that are in fact too small to qualify for trading by many of the mutual funds and pension funds. And many of these smaller companies would be ignored by the typical individual trader as being too risky.
With the arrival of GDM as an ETF, all that goes away. Interesting to me is that none of these companies senior officers who I spoke directly to yesterday were even aware, but they were all certainly interested after I broke the news.
So the significant beneficiaries of GDM will be the small and mid-cap goldminers like Taseko Mines (TGB), Seabridge Gold (SA), Orezone Resources (OZN), Nevsun Resources (NSU), Metallica Resources (MRB), Miramar Mining (MNG), Crystallex International (KRY), Hecla Mining (HL), Desert Sun Mining (DEZ), Northgate Minerals (NXG), Northern Orion Resources (NTO), Tan Range Exploration (TRE), and Goldenstar Resources (GSS).
The next review of the index for additions/deletions will be in June I believe. I expect that many small companies will be trying to get added. You ought to review the possibilities.
So far the requirements for inclusion in the Index are: (i) minimum market cap of $100 million (probably in the tradeable float), and (ii) average daily trading volume of at least 50,000 shares. The latter may increase after GDM starts trading as an ETF.
The GDM ETF will surely increase the trading volume of the smaller components. As well, as I indicated from PDAC this week, now is the time in the cycle I would switch from majors to the smaller producers. That's a double.
finance.messages.yahoo.com
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Sorted by Highest Market Cap
MC Sym Last Change Hi Low Vol Avg Vol
--------------------------------------------------------------
582 HL 4.91 0.13 4.94 5.07 2,880,100 2,382,960
566 NTO 3.81 0.01 3.85 3.97 1,480,500 1,104,100
552 KRY 2.84 -0.03 2.90 2.96 1,462,900 1,954,350
523 MNG 3.13 0.01 3.15 3.23 536,900 806,888
529 TRE 6.20 0.08 6.20 6.42 255,300 1,242,200
468 NXG 2.18 0.04 2.19 2.25 1,591,500 1,822,690
445 DEZ 5.08 -0.02 5.00 5.25 743,600 1,207,960
424 GSS 2.97 -0.01 3.06 3.14 2,723,200 3,514,440
245 SA 7.75 0.01 7.80 7.99 135,000 214,428
244 MRB 2.93 -0.04 3.00 3.07 179,400 364,416
232 OZN 1.98 -0.03 2.05 2.08 167,200 241,967
187 NSU 2.20 0.03 2.20 2.25 173,100 406,228
176 TGB 1.70 0.02 1.71 1.77 658,500 903,130
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