Up 80% in 2022, are Coronado shares heading for the ASX 200?

Could the coal miner be in line for inclusion in the benchmark index?

| More on:
Happy man mining and wearing a helmet in a dark mine underground.

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

  • Coronado shares have been on fire in recent months
  • But this ASX coal share is yet to receive an invitation to the ASX 200 Index
  • But this could be about to change with the ASX 200's next rebalance...

The Coronado Global Resources Inc (ASX: CRN) share price has been an outstanding ASX performer in 2022 so far. Coronado shares are currently up 0.22% so far today, putting this coal miner at a price of $2.315 share. It pushes Coronado shares up an eye-watering 78% or so in 2022 thus far. Not a bad return for four months.

Coronado’s stellar share price performance over the year to date has resulted in the company’s market capitalisation swelling to almost $3.9 billion. However, Coronado still isn’t part of the ASX’s flagship index, the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is designed to reflect the 200 or so largest shares by market cap on the Australian share market. Coronado’s market cap is far larger than many of the ASX 200’s smaller components. But the company still hasn’t made the cut.

However, if reporting in The Australian this week is to be believed, that could be about to change. According to the report, broker Wilsons is tipping five new entrants to the ASX 200 when the index is due for its quarterly rebalance next month.

Coronado share price set for an ASX 200 promotion

And Coronado is one. Since AMP Ltd (ASX: AMP) is no longer considering spinning off its Collimate assets, Wilsons reckons Coronado is the most likely beneficiary. Here’s some of what Wilsons had to say on the matter:

Coronado is the least liquid of the probable entrants, which should be price-supportive for Coronado on the day of the rebalance… Its chances of inclusion improved upon AMP’s announcement, which will likely drive short-term trading support in the coming days.

In addition to Coronado, Wilsons is predicting that Core Lithium Ltd (ASX: CXO)Johns Lyng Group Ltd (ASX: JLG)Brainchip Holdings Ltd (ASX: BRN), and Coronado’s fellow coal share New Cope Corporation Limited (ASX: NHC) are likely candidates for ASX 200 inclusion.

These shares are likely to take the place of companies like Codan Limited (ASX: CDA)Polynovo Ltd (ASX: PNV)Appen Ltd (ASX: APX), and Platinum Asset Management Ltd (ASX: PTM). These are the unlucky shares that Wilsons has identified as the most likely to get kicked out of the index next month.

We’ll find out what the ‘new ASX 200’ looks like next month on 3 June. So it will be interesting to see if Coronado makes the cut, as this ASX broker is predicting.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and POLYNOVO FPO. 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 Scott Phillips.

More on Resources Shares

A mining worker wearing a white hardhat stands on a platform overlooking a huge mine as ASX 200 mining shares fall over the month of June
Resources Shares

How have ASX 200 mining shares fared over June?

We examine the share price performance of BHP, Rio Tinto, Fortescue, and South32.

Read more »

Two men sit in garden on chairs facing each other and fist bump while holding a beer.
Resources Shares

Own Rio Tinto shares? Here’s how the company is ‘canning’ carbon emissions

Let's have a CANdid look at what Rio is up to.

Read more »

Oil miner holding a laptop and mobile phone looks at his phone and sees the falling oil price and falling Woodside share price
Broker Notes

Can the Beach Energy share price hit $1.95?

Buoyant energy markets are continuing to bolster the case...

Read more »

A man wearing a blue jumper and a hat looks at his laptop with a distressed and fearful look on his face as he reads about the Core Lithium share price falling 30% in a month
Resources Shares

Down 30% in a month, what’s been driving the Core Lithium share price lower?

It's been a rollercoaster ride for Core Lithium shareholders in June.

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Broker Notes

Goldman Sachs says Iluka shares are a strong buy with 40% upside

This resources share could be a strong buy according to Goldman Sachs...

Read more »

Top asx share price represented by paper cutout image of mountain peaks with red flag
Resources Shares

What was the highest Rio Tinto share price ever recorded?

Two major spikes in the Rio Tinto share price over its 50-year history on the ASX were caused by the…

Read more »

Resources Shares

Why are Sayona Mining shares the most actively traded of the All Ords today?

Sayona gives back gains earned in yesterdays session.

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Resources Shares

Which ASX 200 mining share offers the best dividend yield for FY22?

Top brokers are forecasting dividend yields of 14% to 17% from the big three ASX 200 miners in FY22.

Read more »