Why these 2 ASX mining shares are in the spotlight today

Big news for these ASX mining stocks broke over the weekend…

| More on:
two young mining apprentices wearing their high visibility gear and hard hats stand together smiling.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Today is the first time AVZ Minerals and De Grey Mining shares are trading after news of their soon-to-be-realised inclusion in the ASX 200 Index broke
  • The companies will join the exchange's bigwigs prior to market open on 21 March 
  • Their inclusion on the index will likely see them snapped up by funds mirroring the index's performance and fund managers restricted to dealing in only ASX 200 shares

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.

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.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »