Saturday, 18 April 2015

Sprott launch Junior Gold Mining ETF - SGDJ

Sprott have followed the launch if their Gold Miners ETF - SGDM with a Junior Gold Miners version - SGDJ.

There are a couple of conflicting messages
  • "Why invest in junior miners? -"High-value discoveries and mine development can create enormous upside potential" ..........But......."The Index methodology tends to favor junior and intermediate producers versus early stage exploration companies whose historical success rate is low." 
Very junior discovery activity seems out of bounds (similarly even "GLDX explorers ETF holdings" are mainly developers of well explored and defined deposits, so really just taking the producing aspect out of GDXJ).
What are the SGDJ holdings? Are they different from GDXJ Holdings or BMO's ZJG Holdings?
Sprott have less royalty here, B2 and Centerra are much more significant and the x3 silver miners stand out, though I recall GDXJ started out with a high % of silver miners. 

COMPANY TICKER                Weight %
B2Gold Corp BTO CN 7.71%
Centerra Gold Inc CG CN 6.46%
First Majestic Silver Corp AG US 6.08%
Hecla Mining Co HL US 5.63%
Pan American Silver Corp PAAS US 5.60%
Alamos Gold Inc AGI CN 5.23%
Harmony Gold Mng-Spon ADR HMY US 4.23%
Primero Mining Corp PPP US 3.72%
OceanaGold Corp OGC CN 3.47%
Sandstorm Gold Ltd SAND US 3.41%
Aurico Gold Inc AUQ US 3.17%
Detour Gold Corp DGC CN 3.00%
Rio Alto Mining Ltd RIO CN 2.74%
China Gold International Res CGG CN 2.69%
Nevsun Resources Ltd NSU CN 2.65%
Alacer Gold Corp ASR CN 2.59%
Kirkland Lake Gold Inc KGI CN 2.57%
Lake Shore Gold Corp LSG CN 2.47%
Novagold Resources Inc NG US 2.26%
Argonaut Gold Inc AR CN 2.22%
Semafo Inc SMF CN 2.05%
Fortuna Silver Mines Inc FSM US 1.87%
Silver Standard Resources SSRI US 1.67%
Endeavour Silver Corp EXK US 1.55%
Dundee Precious Metals Inc DPM CN 1.47%
Torex Gold Resources Inc TXG CN 1.46%
Gold Resource Corp GORO US 1.37%
Pretium Resources Inc PVG US 1.22%
Rubicon Minerals Corp RBY US 1.04%
Premier Gold Mines Ltd PG CN 0.97%
Mag Silver Corp MAG CN 0.78%
Seabridge Gold Inc SA US 0.71%
Guyana Goldfields Inc GUY CN 0.66%
Asanko Gold Inc AKG CN 0.59%
Continental Gold Ltd CNL CN 0.53%

So how has Sprott's senior Gold Miner ETF - SGDM fared since launch against GDX Holdings?
Not so good.
Here they have a policy of high exposure to "stronger balance sheets" in particular Randgold and Franco Nevada, which did not suffer to the degree Barrick, Goldcorp and Newmont did and have not seen the same rebounds.


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