Archive | Canadian Media Resource Articles

Three gold stocks analysts think will outperform as lustre returns to overlooked sector – by Victor Ferreira (Financial Post – January 17, 2019)

https://business.financialpost.com/

The Canadian gold industry’s second mega-deal in a little over four months has some investors taking another look at the sector, which has been lagging for years.

Earlier this week, Goldcorp Inc. announced that it would be merging with Colorado-based Newmont Mining Corp. in a US$10 billion deal that came close on the heels of Barrick Gold Corp.’s September merger with Randgold Resources Ltd.

While some may be on the lookout for the next takeover target, there are other reasons investors may be tempted jump back in, according to analysts at BMO Capital Markets, CIBC and National Bank of Canada. Here are three stocks in the sector those analysts believe could have upside going forward.

Alamos Gold Inc. Continue Reading →

Palladium Tops $1,400 First Time Ever On ‘Avaricious’ Demand – by Allen Sykora (Kitco News – January 17, 2019)

https://www.kitco.com/

(Kitco News) – Palladium – described as a tight market for some time now due to robust automotive demand – topped $1,400 an ounce for the first time ever on Thursday. A desk trader in the physical market said that at one point, palladium suddenly rocketed ahead by around $80 in three hours. Another dealer said prices then eased on profit-taking, but he looks for another test of $1,400.

Spot palladium was $32.75 higher to $1,389.55 an ounce as of 11:11 a.m. EST. The metal peaked just above $1,431 overnight. This was $136 higher than the session peak in spot gold.

“Supplies [of palladium] are pretty much what they were, but demand has been avaricious over the past year,” said Bill O’Neill, one of the principals with LOGIC Advisors, in an interview with Kitco News. “As a result, we have soaring palladium prices and a premium to gold.” Continue Reading →

Canadian mining employee kidnapped during raid in Burkina Faso found dead: officials (Canadian Press/National Post – January 17, 2019)

https://nationalpost.com/

Kirk Woodman was described as a talented geologist — part of a wider community of Nova Scotia-trained geologists who helped find mines around the globe

Government officials in Burkina Faso have confirmed a Canadian mining company employee has been found dead after being kidnapped in the west African country.

An official with the Ministry of Security says Kirk Woodman, a Halifax man who worked for the Vancouver-based Progress Mineral Mining Company, was found dead late Wednesday in Oudalan province.

Jean Paul Badoum said from Ouagadougou, the country’s capital, that the body was found with bullet wounds. Badoum said Woodman was kidnapped by armed gunmen from a mining camp, but officials have not yet identified the kidnappers. He said no group has taken responsibility for the kidnapping. Continue Reading →

First Nations eye stake in Trans Mountain pipeline in bid for ‘economic sovereignty’ – by Geoffrey Morgan (Financial Post – January 17, 2019)

https://business.financialpost.com/

Within the energy industry, there is a growing recognition that indigenous communities need equity ownership in pipelines and other projects in order to proceed

Tsuu T’ina, Alta. — Alberta First Nations are considering a bid to buy a stake in the Trans Mountain pipeline from Ottawa, but the project’s top executive says there is nothing to sell until the expansion project is approved.

Marlene Poitras, the influential Alberta regional chief for the Assembly of First Nations, said that she had informed Finance Minister Bill Morneau of the interest of Alberta’s indigenous communities in buying a stake in the project.

Speaking at the indigenous energy summit on the Tsuu T’ina Nation, a reserve on the edge of Calgary, Poitras said she had also advised the Assembly of First Nations National Chief Perry Bellegarde and the Alberta provincial government that indigenous groups are looking to buy into the pipeline project. Continue Reading →

Welcome to another year of stomping on Canada’s most important industry – by Gwyn Morgan (Financial Post – January 17, 2019)

https://business.financialpost.com/

The cannabis industry may hit $6 billion in contributions to GDP, and automakers $20 billion. But oil and gas? A not-noteworthy $117 billion

What was Canada’s biggest business news story of 2018? According to the pundits at The Canadian Press, it wasn’t the giveaway of Canadian oil to Americans for tens of billions of dollars below world prices, caused by a lack of pipelines from Alberta. It wasn’t the loss of tens of billions more in oil and gas investment to the U.S., because Canada is too hostile to building new projects.

It wasn’t the Americanization of Encana, once the largest of all Canadian-headquartered companies. It wasn’t the federal Liberal government’s forced purchase of the Trans Mountain pipeline from Kinder Morgan because the expansion faced insurmountable opposition from the B.C. government and indigenous groups.

Nor was it the court decision blocking the federal government from completing that project. Instead, The Canadian Press’s choice of business news story of the year was … the legalization of cannabis. Continue Reading →

Hudbay Investor Seeks to Replace CEO and Most of its Board – by Scott Deveau (Bloomberg News – January 16, 2019)

https://www.bloomberg.com/

Hudbay Minerals Inc.’s second-largest investor is seeking to oust the Toronto miner’s chief executive officer and replace most of its board.

Waterton Global Resource Management will nominate eight new directors at Hudbay’s upcoming annual meeting with a slate that includes former mining executive Peter Kukielski and financial services industry veteran Richard Nesbitt, according to a letter to shareholders Wednesday.

Waterton, which owns about 12 percent of Hudbay, will propose that Kukielski be named CEO of Hudbay and Nesbitt chairman. Kukielski was most recently CEO of Nevsun Resources Ltd. Nesbitt was previously the CEO of CIBC World Markets Inc., as well as the parent company of the Toronto Stock Exchange. Continue Reading →

Indigenous Energy Summit to tackle pipeline ownership, leadership issues – by Geoffrey Morgan (Financial Post – January 16, 2019)

https://business.financialpost.com/

First Nations will hear presentations on how they might take ownership of major energy projects, including the Trans Mountain pipeline

CALGARY — First Nations that produce oil and gas in Canada will tackle some of the most contentious issues facing the sector at the Indigenous Energy Summit on Wednesday, including potential ownership bids for, and protests about, pipelines.

One of the biggest issues in the Canadian energy sector is the ongoing fight between hereditary chiefs and elected chiefs over the the $6.2-billion Coastal GasLink pipeline in British Columbia, which has opened wounds for current and former northern B.C. chiefs.

Meanwhile, First Nations will hear presentations on how they might take ownership of major energy projects, including the Trans Mountain pipeline. Continue Reading →

Newmont CEO defends Goldcorp deal amid speculation rival bidders could emerge – Gabriel Friedman (Financial Post – January 16, 2019)

https://business.financialpost.com/

One analyst downgraded Newmont from outperformer to neutral ‘until the company provides additional clarity on its strategic plans’

Gary Goldberg, chief executive of Colorado-based Newmont Mining Corp., started off Tuesday morning feeling upbeat.

One day after announcing his company’s US$10 billion bid for Vancouver-based Goldcorp Inc., his company’s stock was trading down, again, falling three per cent at one stage on Tuesday, after falling 8.89 per cent on Monday; and now Goldcorp was also trading down more than three per cent.

Reaction to the deal looked decidedly mixed. One analyst was raising questions about the rationale for the deal and another was suggesting the price was too low and Goldcorp could attract other bidders; and yet Goldberg insisted none of it was surprising or unnerving in the slightest. Continue Reading →

Newmont likely to sell a number of Goldcorp’s Canadian mines – by Niall McGee (Globe and Mail – January 16, 2019)

https://www.theglobeandmail.com/

Newmont Mining Corp.’s acquisition of Goldcorp Inc. will likely result in the sale of a number of the latter’s Canadian mines as the combined company focuses on its best-performing and lowest-cost operations.

On Monday, the Denver-based gold major announced it had reached a friendly deal to acquire Vancouver-based Goldcorp for US$10-billion in a mostly share transaction that will see Newmont’s mine portfolio jump to 20 properties across four continents.

It was the second major deal in the Canadian gold sector in the past few months, with Toronto’s Barrick Gold Corp. recently closing its US$6-billion acquisition of Randgold Resources Ltd. Continue Reading →

Monster Gold-Mining Deals Pile Pressure on Those Left Behind – by Thomas Biesheuvel and Danielle Bochove (Bloomberg News – January 15, 2019)

https://www.bloomberg.com/

Mark Bristow’s tenure as boss of the world’s biggest gold miner might have been short-lived, but his message for smaller rivals just got even more pointed.

“Holy camoly, I missed out on a great opportunity!” is how Bristow described anyone not involved in Barrick Gold Corp.’s purchase of Randgold Resources Ltd. in September. With Newmont Mining Corp. poised to become the No. 1 producer through a $10 billion takeover of Goldcorp Inc. announced Monday, the pressure on those left behind will be even greater.

The two mega deals promise to transform the industry that many investors have shunned due to floundering bullion prices and poor decision making by producers. The newly combined companies are also expected to put several unloved assets up for sale, leaving lots of room for maneuvering by those that missed out on the dealmaking so far. Continue Reading →

Newmont’s Goldcorp Gamble May Need ‘Drastic Surgery’ to Pay Off – by Danielle Bochove, Caleb Mutua and Marvin G. Perez (Bloomberg News/Yahoo – January 15, 2019)

https://finance.yahoo.com/

(Bloomberg) — The cost to create the world’s largest gold company: A 17 percent premium for a $10 billion all-shares acquisition that faces some big-time challenges down the line.

Newmont Mining Corp.’s deal for Goldcorp Inc. stands in stark contrast to the recent zero-premium merger between Barrick Gold Corp. and Randgold Resources. The key question: Why? In October, Goldcorp shares fell to their lowest since 2002 after the miner reported lower output and higher costs than expected. Since then the stock improved only marginally before today.

The merged company will have the world’s largest production and reserve base, and the kind of liquidity and diversified assets required to attract institutional investors, Stephen D. Walker, an analyst with RBC Capital markets, wrote in a research note. Continue Reading →

Newmont Mining to take over Goldcorp in US$10-billion acquisition deal – by Niall McGee and Rachelle Younglai (Globe and Mail – January 15, 2019)

https://www.theglobeandmail.com/

Goldcorp Inc. has agreed to a US$10-billion takeover by Newmont Mining Corp. that sees the Vancouver company, once the world’s most valuable gold miner, acquired by a U.S. competitor at a fraction of its peak value.

The Goldcorp takeover is the second big deal in the past few months involving a large Canadian gold company. On Jan. 1, Toronto-based Barrick Gold Corp. closed its US$6-billion acquisition of African operator Randgold Resources Ltd.

Now, Newmont is set to surpass Barrick and grab the crown as the world’s largest gold producer by market capitalization, production and reserves. Newmont and Goldcorp will produce 6 to 7 million ounces of gold a year over the next decade, executives said on Monday. The combined stock market capitalization of the new company would be about $35-billion, compared with Barrick’s $29-billion. Continue Reading →

OPINION: After Goldcorp-Newmont deal, who’s next in the gold-industry merger wave? – by Andrew Willis (Globe and Mail – January 15, 2019)

https://www.theglobeandmail.com/

In the gold sector, nothing gets the sharks circling like the combination of promising mines and a depressed stock price. The sector’s prolonged slump now has its biggest predators, Newmont Mining Corp. and Barrick Gold Corp., feeding on weaker rivals, creating expectation of further takeovers in an industry where many experts see consolidation as long overdue.

Denver-based Newmont snapped up former market darling Goldcorp Inc. for US$10-billion after a series of management miscues left the Vancouver-based owner of 13 properties with a valuation that trailed comparable companies.

Barrick took advantage of much the same dynamics last September, striking a US$6-billion deal with Randgold Resources Ltd. after investors got the jitters over the company’s mines in politically unstable African countries such as Mali and the Democratic Republic of Congo. Continue Reading →

Why the Newmont-Goldcorp blockbuster deal is in sharp contrast to the Barrick-Randgold merger – by Gabriel Friedman (Financial Post – January 15, 2019)

https://business.financialpost.com/

Newmont has higher a dividend, safer locations than Barrick and will invest in Canada, but its stock still fell. Perhaps copper-gold mining will help it shine

As Newmont Mining Inc.’s chief executive Gary Goldberg hawked a proposed $10 billion all-stock purchase of Vancouver-based Goldcorp to his investors on Monday, he and his team emphasized massive gold production, a focus on mines in the safest jurisdictions in the world and continued investment in Canada.

That drew a stark contrast to chief rival Barrick Gold, which also recently completed a mega-merger, and has reduced its presence in Canada and grown in more risky jurisdictions. “This is not a deal we have to do, it’s a deal we want to do,” Goldberg told investors.

But while Barrick’s share price surged after announcing its deal, Newmont’s stock had declined 8.89 per cent to close at US$31.78 on Monday afternoon. Continue Reading →

Newmont Mining to buy Goldcorp – by Ian Bickis (Canadian Press/Timmins Daily Press – January 15, 2019)

https://www.timminspress.com/

Newmont Mining Corp. has struck a US$10-billion deal to take over Goldcorp Inc. in a move that will see the U.S.-based mining giant grow even larger while Canada’s mining industry loses a head office.

TORONTO — Newmont Mining Corp. has struck a US$10-billion deal to take over Goldcorp Inc. in a move that will see the U.S.-based mining giant grow even larger while Canada’s mining industry loses a head office.

Colorado-based Newmont will add Vancouver-based Goldcorp’s seven mines in North and South America to its global operations of 12 operating mines to create a company expected to rival or top Barrick Gold as the world’s largest gold producer. “This is not a deal we have to do, this is a deal that we want to do,” Newmont CEO Gary Goldberg told a conference call Monday.

The deal follows Barrick Gold’s US$6.1-billion all-stock takeover of Randgold Resources Ltd. that closed at the start of the year to create a company with a combined 2018 gold production guidance of between 5.8 million and 6.3 million ounces. Continue Reading →