Greatland Resources, a gold producer backed by the Forrest family, is expected to be added to the S&P/ASX 200 index. This inclusion offers a boost to the miner, whose shares have underperformed since its ASX float. Greatland Resources is a West Australian miner that retains its London listing. The company is focused on discovering and developing world-class gold deposits.
The upcoming quarterly rebalance, set to be announced on September 5 and take effect two weeks later, will see Greatland also join the S&P/ASX 300 and Small Ordinaries indices. Despite an initial surge to $7.80 after floating at $6.60 in June, Greatland’s share price has since fallen by 32 per cent due to reduced production guidance and increased cost warnings. Morgan Stanley anticipates that Greatland’s inclusion will drive $162.5 million in trades from index-following investors.
DroneShield is also a likely addition to the ASX 200, fuelled by booming demand for its counter-drone technology, which has seen its share price more than quadruple this year. Morgan Stanley views Ebos Group, a pharmaceutical distributor, and Dalrymple Bay, an infrastructure company, as likely candidates for inclusion, while Catalyst Metals and Perenti have a lower probability. Clarity Pharmaceuticals, pioneering cancer treatments using copper radioisotopes, faces a potential exclusion, although a recent $200 million capital raising could increase its free float and secure its place in the index.
Lifestyle Communities is likely to be removed from the benchmark index following a 50 per cent share price decline this year. Nuix and PolyNovo are also projected for removal. Conversely, Ramelius Resources and Genesis Minerals are expected to join the S&P/ASX 100 at the expense of IDP Education and Orora.
