It could be a big day for these ASX mining shares. They'll soon be bumping elbows with some of the exchange's most renowned companies.
Lithium, tin, and tantalum explorer AVZ Minerals Ltd (ASX: AVZ) and gold explorer De Grey Mining Limited (ASX: DEG) will be inducted into the S&P/ASX 200 Index (ASX: XJO) later this month.
Today marks the first time the ASX mining shares will trade after news of their soon-to-be new home was released.
Let's take a look at what it could mean for the miners' stock.
Image source: Getty Images
These mining shares are about to hit the ASX 200
Shares in AVZ Minerals and De Grey Mining will hit the ASX 200 on 21 March.
The news was announced by S&P Dow Jones Indices on Friday evening.
The companies' entrance into the famed index could see their shares trading like hotcakes in the near term.
As my Fool colleague James Mickleboro reported, funds tracking the ASX 200 will likely be scrambling to buy into the ASX mining shares to continue reflecting the landmark index.
Additionally, Mickleboro notes some fund managers are only able to invest in ASX 200 companies. Thus, they may be on the radar of more fundies later this month.
AVZ Minerals and De Grey Mining – alongside City Chic Collective Ltd (ASX: CCX) and Home Consortium Ltd (ASX: HMC) – will be taking the places of four current ASX 200 shares.
They include Mesoblast Limited (ASX: MSB), SKYCITY Entertainment Group Limited (ASX: SKC), Spark New Zealand Ltd (ASX: SPK), and Unibail-Rodamco-Westfield CDI (ASX: URW).
AVZ Minerals managing director Nigel Ferguson said its inclusion in the ASX 200 reflects "growing investor appetite and confidence" in the company and the Democratic Republic of Congo. That's where the company's Manono Lithium and Tin Project is located.
De Grey Mining hasn't commented on its inclusion in the landmark index.
According to the ASX, AVZ Minerals has a market capitalisation of $3.15 billion.
That of De Grey Mining is notably less, sitting at $1.63 billion.
