Gold mining giant Newmont (TSX: NGT; NYSE: NEM) said it plans to voluntarily withdraw its common shares from the Toronto Stock Exchange due to low trading volumes.
The delisting is expected to take effect on or around Sept. 24, Denver-based Newmont said this week in a statement. Its main listing will continue to be on the New York Stock Exchange, with the stock also trading on the Australian Securities Exchange and the Papua New Guinea Stock Exchange.
Delisting from the TSX should improve administrative efficiency and reduce costs for the benefit of Newmont’s shareholders, the company said. Newmont also said it decided against seeking shareholder approval for the TSX delisting because its shares already trade effectively on alternative markets that meet its standards for liquidity and accessibility.
Trading volumes on the TSX typically pale in comparison with those on the New York market. About 360,000 Newmont shares changed hands in Toronto yesterday, compared with 9.33 million on the NYSE.
Newmont’s decision aligns with a broader industry trend where companies are cutting back on less liquid listings to focus on their most active markets, analysts said. South America-focused gold and copper miner Aura Minerals (TSX: ORA; Nasdaq: AUGO) announced a similar move last month, citing limited interest from Canadian investors.
Shares of Newmont were little changed at $110.05 in Toronto Friday morning, giving the company a market value of about $120 billion. The stock has almost doubled since the start of the year amid a rally for gold miners.
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