13/12/2019 - 10:33

South32 and Galaxy drop out of ASX indices

13/12/2019 - 10:33

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A quarterly rebalancing of S&P/ASX indices has resulted in South32 being relegated from the top 20 index, and Galaxy Resources being dropped from the top 200 index.

South32 and Galaxy drop out of ASX indices
Additions to the ASX200 include WA-founded IMF Bentham, Queensland-based AP Eagers and Perseus Mining. Photo: Attila Csaszar

A quarterly rebalancing of S&P/ASX indices has resulted in South32 being relegated from the top 20 index, and Galaxy Resources being dropped from the top 200 index.

South32, which in November sold its South African energy-coal division to Sereti Resources, had experienced a fall in profit earlier this year in light of lower aluminium prices.

It will be removed from the S&P/ASX 20 Index and replaced by Newcrest Mining, which operates the Telfer gold mine in the eastern Pilbara.

Galaxy Resources, meanwhile, will be removed from the S&P/ASX 200 Index - its market value has fallen on the back of an increasing oversupply of lithium.

In November, Galaxy announced it would scale back operations at its Mt Cattlin mine in Ravensthorpe to cut around US$20 million in operating costs.

Other additions after the rebalance include WA-founded IMF Bentham, Queensland-based AP Eagers and Perseus Mining.

AP Eagers move into the S&P/ASX 200 following its takeover of WA’s Automotive Holdings Group.

Perseus Mining, which operates several mining projects in West Africa, welcomed the news in a statement, writing that inclusion in the index would assist the company in gaining further exposure across global markets.

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