Northern Star to join ASX 50

NEW global gold major Northern Star Resources will be added to the ASX 50 next week.
Northern Star to join ASX 50 Northern Star to join ASX 50 Northern Star to join ASX 50 Northern Star to join ASX 50 Northern Star to join ASX 50

The company will replace service provider Orica as part of S&P Dow Jones Indices' quarterly rebalance of the ASX 200.

Northern Star completed a merger with Saracen Mineral Holdings in February to become Australia's second-largest gold producer by market capitalisation.

The gold miner is now valued at A$13.4 billion.

Despite being a pre-resource explorer, the success of Chalice Mining will see it join the ASX 200.

Shares in Chalice went from less than 20c in March last year to as much as $9 due to its Julimar nickel-copper-palladium-platinum discovery just outside Perth.

At Friday's closing price of $8.81, Chalice was capitalised at $3.05 billion for a 918% return over 12 months.

Orocobre will return to the ASX 200 after its shares made a strong comeback.

The lithium miner first joined the index in September 2016, but was removed in September 2020 as lithium prices bottomed.

The company recently announced a merger with another former ASX 200 member, Galaxy Resources, with the combined entity expected to be a contender for addition to the index.

Chalice and Orocobre replace Perenti Global and Resolute Mining.

Perenti shares are down 50% since the start of the year due to a guidance downgrade caused by pandemic-associated labour shortages.

Resolute is down about 30% after a US$105 million deal to sell its Bibiani gold mine in Ghana fell through.