The Motley Fool

Why Gold Road Resources just joined the S&P/ ASX200 Index

The Gold Road Resources Ltd (ASX: GOR) share price is up around 110% over just the past year and as some reward for investors the company is set to join the S&P/ ASX200 (ASX: XJO) Index of Australia’s leading companies on September 23.

Generally, when a company joins the S&P/ ASX200 its share price can receive a free kick as popular index tracking funds that must hold every constituent of an index to an equivalent rating are forced to buy shares in the company irrespective of valuation. 

However, over the long term that’s not really material to Gold Road Resources investors who are pinning their hopes on the miner’s WA joint venture the Gruyere Gold field.

Over calendar 2019 the company now estimates the field will produce between 75,000 to 100,000 ounces of gold, with it also exploring at other WA gold prospects that it has 100% ownership of.

For the quarter ending June 30 2019 it posted a net operating cash loss of $16.9 million with no revenue from gold sales. 

The company has $63 million cash on hand with $65 million in drawn bank debt. 

Other companies to be elevated to the S&P/ ASX200 include KFC merchant Collins Foods Limited (ASX: CKF) and online lotto retailer Jumbo Interactive Ltd (ASX: JIN).

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Collins Foods Limited and Jumbo Interactive Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.