Barrick Gold Corp. is hoping to be included in the S&P 500 Index in the United States but plans to keep its head office in Canada, a potentially tricky manoeuvre that, if successful, would open up the giant miner to an even larger pool of investors.
Being included in the S&P 500 would result in increased buying of Toronto-based Barrick from large institutional investors, such as index funds. While specialist mining funds have been in decline over the past decade, index-tracking exchange-traded funds are making up a bigger swath of the investment pool.
“That’s something that’s always been of interest to me, because if we got on the S&P, the index demand would increase substantially,” Barrick chief executive Mark Bristow said in an interview.
Barrick’s primary stock listing is currently on the Toronto Stock Exchange and it has a secondary listing on the New York Stock Exchange.
Gaining entry to the S&P 500 wouldn’t be straightforward. To list on the marquee U.S. index, normally a company must be domiciled in the United States, should be headquartered in the U.S. and have more of its assets and revenue coming from the U.S. than anywhere else.