Reuters
Our roundup of Canadian small-caps making news and on the move today.
AGT Food and Ingredients Inc. reported its fourth-quarter and year-end results, with adjusted earnings per share for 2014 rising to $1.76 a share from $1.09 a year earlier. Revenue rose 19 per cent to $1.36-billion. The Street was expecting EPS of $1.47 on revenues of $1.35-billion.
======
Sherritt International Corp. announced today strike action by its employees at the Ambatovy mine near Moramanga, Madagascar.
The strike action began a week ago and continues despite management's efforts to reach a resolution, the company said.
As a result of the strike activity the mine is running at a reduced capacity, curtailing ore feed to the Toamasina plant. No work stoppage has occurred at the Toamasina plant. The strike is not expected to affect Sherritt's 2015 production guidance, according to Sherritt.
In a separate press release today, Sherritt said that Ambatovy has successfully reached a production rate equivalent to 54,000 tonnes of nickel on an annualized basis, or approximately 90 per cent of nameplate capacity.
======
Ivanhoe Mines Ltd. said that China's Zijin Mining Group Co. Ltd. has agreed to take a significant minority stake in the company.
Under terms of the agreement, Ivanhoe Mines will issue 76,817,020 common shares to Zijin through a private placement at a price of $1.36 (Canadian) per share, yielding gross proceeds of approximately $105-million. Ivanhoe Mines will use the proceeds for working capital and general corporate purposes, including the advancement of the company's projects in southern Africa.
Approximately 9.9 per cent of Ivanhoe Mines' issued and outstanding common shares will become owned by a wholly-owned subsidiary of Zijin when the placement is completed.
Ivanhoe executive chairman Robert Friedland said Zijin's decision represents the first major commitment by an international mining company to provide support for all of Ivanhoe's development-stage projects in South Africa and in the Democratic Republic of Congo.
======
U.S. mining giant Cliffs Natural Resources Inc. has found a buyer for its chromite assets in the Ring of Fire mineral belt in northern Ontario.
Noront Resources Ltd. said on Monday it has a $20-million (U.S.) agreement with Cleveland-based Cliffs to acquire the shares of two indirect wholly owned subsidiaries of Cliffs, which hold mining claims in the Ring of Fire, about 500 kilometres northeast of Thunder Bay.
To finance the transaction, Noront is borrowing $22.5-million from Franco Nevada Corp. In return, Franco Nevada will receive royalties on several chromite deposits.
======
In analyst actions this morning involving Canadian small caps:
Canaccord Genuity downgraded AutoCanada to hold from buy, cuts target all the way to $38 Cdn from $66.
Raymond James downgraded IBI Group to market perform from outperform, target cut to $2 Cdn from $3.75.
Desjardins downgraded HNZ Group to hold from buy, with a price target of $20 Cdn.
======
Cipher Pharmaceuticals Inc. announced it has licensed the Canadian distribution rights to CF101, a chemical entity being developed by Can-Fite Biopharma for moderate to severe plaque psoriasis and rheumatoid arthritis.
======
Lion One Metals Ltd. announced that Fiji's Minister of Lands and Mineral Resources has approved the grant of a Special Mining Lease for the company's wholly owned Tuvatu Gold Project located on the island of Viti Levu.
The lease provides exclusive rights for the potential development, construction, and operation of mining, processing, and waste management infrastructure at Tuvatu and the surrounding lease area. The grant represents the final step in permitting process under Fiji's Mining Act.
======
Nevsun Resources Ltd. reported that the repairs to the mechanical issue concerning the ball mill at the Bisha plant at its mine in Eritrea are nearly complete and the project remains on track for restarting later this week.
The company also disclosed today that the Bisha Mine experienced an act of vandalism on March 20, in which minor damages were sustained to the base of the tailings thickener, resulting in the release of water into the plant area. "The required repairs and cleanup from the incident were minor and are incorporated into the plant re-start later this week. Additional safeguards have been adopted to ensure site and personnel safety and security while the Eritrean and mine security forces undertake an investigation," the company said.
======
Toro Oil & Gas Ltd. announced the results of its independent reserve evaluation by Sproule Associates Ltd. Total proved reserves rose 150 per cent to 2 million barrels of oil equivalent per day.
======
With a file from Bertrand Marotte
Darcy Keith