Archive | Canadian Media Resource Articles

The Price Of Gold Will Rise As Trade Wars Weigh On USD – Morgan Stanley – by Neils Christensen (Kitco News – May 15, 2019)

https://www.kitco.com/

(Kitco News) – Gold will be an attractive safe-haven asset as rising trade tensions weaken the U.S. economy and drag down the U.S. dollar, according to a recent report from Morgan Stanley.

But it’s not the current trade dispute with China that investors should be paying attention to; the banks said that a potential trade war with the European Union is the most significant risk to the economy.

U.S. President Donald Trump has until May 18 to decide whether he will impose a 25% tariff on car imports from the European Union. The deadline comes 90 days after the U.S. Commerce Department said in a study that auto imports pose a threat to American national security. Continue Reading →

‘Farmers are hurting’: Rising pressure on U.S. agriculture key to removal of steel tariffs from Canada, Mexico – by Naomi Powell (Financial Post – May 16, 2019)

https://business.financialpost.com/

Faltering U.S.-China trade talks, rising tariff pressure on American farmers and a rapidly disappearing opportunity to ratify the new North American Free Trade Agreement are fuelling Washington’s renewed push to negotiate the removal of steel and aluminum levies from Canada and Mexico, analysts say.

“I think we are close to an understanding with Mexico and Canada,” on resolving the tariffs, U.S. Treasury Secretary Steven Mnuchin said at a U.S. Senate Appropriations subcommittee hearing Wednesday. He not provide any details about the potential agreement.

Foreign Affairs Minister Chrystia Freeland was in Washington Wednesday to push for the removal of the tariffs during meetings with U.S. Trade Representative Robert Lighthizer. Continue Reading →

Tesla is turning rivals into roadkill – even in China – by Frik Els (Mining.com – May 15, 2019)

http://www.mining.com/

Elon Musk has no shortage of detractors – and judging by the tone struck by some of them, that’s not nearly a strong enough word. Neither does the Tesla CEO have a shortage of short sellers and every so often long sellers get in on the action too. Bears turn bulls with gusto and bulls turn bears with alacrity.

Musk frequently muddies the waters himself, making outlandish – and sometimes ludicrous claims for his current and future vehicles. And the tweets. The tweets. The reckless tweets.

The result is that those those who want to make a sober assessment of the company have few places to go. So how does the rubber really hit the road for Tesla? Continue Reading →

Senators defeat Ottawa’s oil tanker ban bill in rare move, putting legislation on life support – by Jesse Snyder (National Post – May 16, 2019)

https://nationalpost.com/

OTTAWA — In a rare legislative move on Wednesday, the Senate transport committee voted to defeat the Liberal government’s moratorium on oil tankers in northern B.C., putting the controversial bill on life support after years of political wrangling.

A vote against the bill by Independent Sen. Paula Simons, along with the five other Conservative senators on the committee, swayed a final decision in favour of recommending that the senate nix Bill C-48, which effectively bars any oil tankers from entering northern B.C. waters.

The move does not immediately kill the oil tanker moratorium, but a vote by the senate to adopt the committee recommendations would stop the legislation in its tracks. A vote on the report is expected in coming days. Continue Reading →

Agnico Eagle’s mine training program has its critics – by Avery Zingel (CBC News North – May 16, 2019)

https://www.cbc.ca/news/canada/north/

A worker at Agnico Eagle’s Meadowbank Mine in Nunavut says a training program designed to train Nunavummiut allows southern contractors to rise, while Inuit wait for training. Agnico Eagle Mines Ltd. operates the Meadowbank open-pit gold mine, north of Baker Lake and the Meliadine mine near Rankin Inlet.

CBC has agreed not to name the worker, who said he fears reprisal from the company. The man has been an employee with the company for over a decade, and said he has never been suspended.

The employee, who is not Inuit, said he is “fed up” with the treatment of his Inuit colleagues. The man said Inuit on his crew are overlooked for higher-paying positions and become frustrated when they are turned down for the training they need to advance. Continue Reading →

Australia’s St. Barbara to acquire Canada’s Atlantic Gold in $722-million deal – by Niall McGee (Globe and Mail – May 16, 2019)

https://www.theglobeandmail.com/

Australia’s St. Barbara Ltd. is buying Canada’s Atlantic Gold Corp. in a friendly transaction worth $722-million – more evidence of a resurgence in deal-making in the global gold sector. Vancouver-based Atlantic owns and operates a small but very profitable gold mine in Nova Scotia.

St. Barbara is paying $2.90 a share for Atlantic, about a 40-per-cent premium to the Tuesday closing price. In addition, shareholders will receive the equivalent of 5 cents a share in a spin-off company that will hold Atlantic’s equity stake in Velocity Minerals Ltd., a small development stage company.

St. Barbara is funding the deal through a mix of cash on hand and proceeds from an equity issue. In an interview, Atlantic’s chief executive officer Steven Dean said there was “a good deal of interest from a number of parties,” but that St. Barbara’s offer, which was almost all-cash, was particularly compelling. Continue Reading →

N.S. mine where roof collapsed allowed limited production increase (Canadian Press/Financial Post – May 15, 2019)

https://business.financialpost.com/

DONKIN, N.S. — Nova Scotia’s Labour Department has allowed a limited increase in production at Canada’s only operating underground coal mine after a series of roof collapses last year.

Kameron Coal’s operations in Cape Breton were suspended for just under a month by the province in late December before it was allowed to partially resume activities in one portion of the mine while it prepared a revised roof support plan.

Scott Nauss, the province’s senior director of inspection compliance, said the new plan approved on May 7 allows Kameron to mine in two sections of the Donkin mine totalling 730 metres of added rock face, which is less than 10 per cent of the mine. Continue Reading →

Study indicates mine contamination not a big health issue for Yellowknifers – by Richard Gleeson (CBC News North – May 15, 2019)

https://www.cbc.ca/news/canada/north/

The most comprehensive study undertaken on the concentration of mine contaminants in people living in the Yellowknife area shows contaminant levels similar to those found in Canadians generally.

“We don’t have any evidence or reason to be concerned about the immediate health effects that we see in other populations that have high levels, like India and Bangladesh,” said Dr. Laurie Chan, the University of Ottawa professor leading the study.

Researchers analyzed tongue swabs, toenail clippings and urine from 2,037 residents of Yellowknife, Ndilo and Dettah. They measured concentrations of arsenic, lead and cadmium. In adults, they found arsenic levels slightly lower than levels measured in Canadians generally. The levels in children were higher than in Canadian children generally, but not high enough to be a concern. Continue Reading →

BHP admits it ‘over-invested’ in Jansen mine – by Alex MacPherson (Saskatoon StarPhoenix – May 15, 2019)

https://thestarphoenix.com/

However, the company’s CEO told investors this week, it still considers the project east of Saskatoon ‘attractive.’

BHP “over-invested” in its massive Jansen potash mine, currently under construction east of Saskatoon, the Anglo-Australian company’s chief executive told investors this week.

However, Andrew Mackenzie said during a mining conference in Barcelona, BHP still considers the project “attractive” even though no final decision about its future has been made.

BHP has committed around US$3.9 billion to the project, but Mackenzie confirmed this week that it remains “uncertain” when the company’s board will make a decision about whether to proceed further. Continue Reading →

OPINION: Canadian investors need to stop suing foreign governments over environmental-friendly policies – by Hadrian Mertins-Kirkwood (Globe and Mail – May 14, 2019)

https://www.theglobeandmail.com/

Hadrian Mertins-Kirkwood is a senior researcher at the Canadian Centre for Policy Alternatives and the co-author with Ben Smith of the new report Digging for Dividends

Canadian corporations are taking advantage of Canada’s free trade and investment agreements to undermine environmental policies in developing countries. And it’s putting the global fight against climate change – and Canada’s international reputation – at risk.

Using a little-known legal mechanism called investor-state dispute settlement (ISDS), foreign investors can sue governments to claim compensation for alleged violations of an investment agreement. Canada has negotiated ISDS clauses into dozens of investment treaties with developing countries where there is or could soon be a Canadian mining presence.

Canadian mining companies operating overseas are already notorious for disregarding human rights and damaging the environment, especially in poor countries. Now, they’re increasingly turning to ISDS to directly challenge government measures taken in the public interest. Continue Reading →

‘Cash crunch’: Canada’s shrinking junior mining sector struggles for relevance — and deals – by Gabriel Friedman (Financial Post – May 15, 2019)

https://business.financialpost.com/

Cannabis companies raised $4 billion in 2018 compared to $217 million by mining companies

Last spring, Vancouver-based Hecla Mining Company’s chief executive Philip Baker Jr. announced a $600 million deal to purchase three gold mines in Nevada at a 59 per cent premium.

Baker assured investors his company conducted extensive due diligence to justify the hefty price tag. “There isn’t anyone on the planet who knows this asset better than us,” he told the Financial Post.

About one year later, Hecla has initiated “a comprehensive review” after running into a flurry of problems in Nevada, including “unacceptable” costs, lower than expected production, problems expanding the mine life, excessive water in one mine and other issues. The mines produced 10,000 ounces of gold in the first quarter, down from the 162,000 annual production estimate given at the time of the purchase. Continue Reading →

Freeland renews push to remove steel, aluminum tariffs during Washington trip – by Mike Blanchfield (Canadian Press/Global News – May 14, 2019)

https://globalnews.ca/

Foreign Affairs Minister Chrystia Freeland is bound for Washington to meet with Trump trade czar Robert Lighthizer in a renewed push to get punitive steel and aluminum tariffs lifted.

The meeting at the United States trade representative’s Washington office is to take place on Wednesday but Freeland will also venture to Capitol Hill for a meeting with the influential Republican chair of the Senate finance committee, Chuck Grassley.

“We continue to lobby very assertively for the lifting of the tariffs. We’re at a point where we need to do everything we can and talk to everyone we can about why we see these as unjust,” a senior government source said Tuesday, speaking on the condition of anonymity because of the sensitivity of the ongoing dispute. Continue Reading →

‘Cash crunch’ leaves Stornoway Diamond Corp. racing to stave off insolvency – by Nicolas Van Praet (Globe and Mail – May 15, 2019)

https://www.theglobeandmail.com/

Stornoway Diamond Corp. is racing to stave off insolvency as it deals with a decline in gem prices that has prevented the Canadian miner from generating positive free cash flow this year.

Longueuil, Que.-based Stornoway said Tuesday it is in talks with backers to secure its long-term financial viability. At the same time, the company launched a major cost-cutting effort and strategic review, which could mean putting itself up for sale.

“We have a cash crunch so that’s why we need to look at our options,” Stornoway chief executive Patrick Godin said in an interview with The Globe and Mail, adding that although diamond pricing is soft at the moment, he remains confident it will recover as global supply decreases over the next several years. “Given the quality of the asset that we have, we just need to resist during the tough times to be able to take the wave.” Continue Reading →

Liberal tanker ban looks to be foundering in the choppy waters of the Senate – by John Ivison (National Post – May 15, 2019)

https://nationalpost.com/

Garneau slipped up by acknowledging the real reason the Liberals are driving the bill through parliament, in the teeth of fierce opposition

Marc Garneau probably wished he were back on the space shuttle. The transport minister — the government’s point person on C-48, the oil tanker moratorium act that is currently being dismembered by uncooperative senators — was called upon to defend the bill before the Senate transport and communications committee Tuesday.

The committee is made up of Conservatives and Liberal-appointed independent senators, who are proving more non-aligned than the government might wish.

Paula Simons, a former journalist who is now an independent senator representing Alberta, suggested to Garneau that Bill C-69 (the government’s environmental assessment reform that is also bogged down in the Senate) is a robust piece of legislation that would subject any plans for a new port on the west coast to the same rigorous scrutiny as any new pipeline. “Isn’t C-48 superfluous and redundant?” she asked. Continue Reading →

Australia’s St Barbara snaps up Canada’s Atlantic Gold for $536 mln – by Melanie Burton (Reuters Canada – May 14, 2019)

https://ca.reuters.com/

MELBOURNE (Reuters) – Australian gold miner St Barbara said on Wednesday it will buy smaller Canadian peer Atlantic Gold Corp for C$722 million ($536 million), marking a second overseas acquisition for cashed-up Australian producers.

St Barbara’s C$2.90 a share cash offer represents a 39% premium to Atlanta Gold’s closing price on Tuesday in a deal that analysts said opened up growth options, but could lead to a call on capital and crimp dividends.

“Buying an unknown asset in a new country which itself potentially requires a fresh injection of capital… could present an additional barrier for some investors,” said RBC Capital in a report. Continue Reading →