FT Gold Mines Index

A subsidiary FT equity index tracks the performance of thirty-four international gold mining companies in Africa (primarily South Africa, but also Ashanti in Ghana), Australasia and North America. The base value for the Gold Mines Index is 1000 set on last day of 1992, and the currency basis for the value calculations is US dollars.

Gold Mines – The value of the index at the end of the last two days’ trading in London as well as one year ago and the high and low point of the previous fifty-two weeks. In addition, this index shows the current gross dividend yield.

Regional indices – Similar values and yields for the three regional components of the overall gold mines index, plus their p/e ratios.

There are three categories of gold mining companies: the “majors” with production of one million ounces of gold per year (about 15 companies); the “independents” with production of over 100,000 ounces a year (about 50 companies); and the “juniors” – companies with little or no production but with the determination to discover some.

Broad criteria for valuing mining companies include the quality, quantity and overall status of a company’s production, reserves, management and exploration programme, as well as the political risk of the country in which it is based.