Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Mississauga, Ont.-based The Second Cup Ltd. (SCU-T) reported a loss of $1.1-million, or 9 cents per share for the third quarter ended Sept. 26, compared with a year-ago net loss of $26.2-million, or $2.65 per share — which was a loss of $463,000 or 5 cents per share when adjusted for impairment charges.
Same-store sales in the quarter were down 2.9 per cent, compared to a decline of 3.1 per cent in the second quarter. However, Second Cup said in the past five weeks same-store sales have risen 1 per cent. During the quarter, the company cut its number of corporate store to 42 from 47 "with further reductions expected."
"There are strong indicators that our transformation strategy is taking hold, in particular the positive same store sales trend in October which is the first positive sales month in three and a half years," says Alix Box, president and CEO. "We are excited about the roll out of our new café concept and the momentum we are gaining in refranchising cafes to high caliber franchisees. We are seeing progress and there is much more to do. We remain focused on our strategies to strengthen our network and drive same store sales growth."
Montreal-based TVA Group Inc. (TVA.B-T) reported adjusted operating income of $30.9-million in the third quarter ended Sept. 30, compared with $7.6-million in the same quarter last year. TVA said it also recorded a $60.1-million non-cash charge for impairment of a broadcasting licence and declared a net loss attributable to shareholders of $36.5-million or 84 cents per share in the quarter. That compared with a net loss attributable to shareholders of $35.7-million or $1.50 per share in the year-earlier quarter. Revenues for the quarter were $138.5-million, up from $94.5-million a year ago.
"We are satisfied with the improvement in our financial results based on adjusted operating income in all three of our business segments. The excellent financial performance of our new Film Production & Audiovisual Services segment made a significant contribution. Adding this line of business, which has strong growth potential, to the corporation's operations is consistent with our goal of reducing our dependence on fluctuating advertising revenues," said Julie Tremblay, the company's president and CEO.
Montreal-based Tomagold Corp. (LOT-X) said it has renegotiated the Monster Lake project agreement with Iamgold Corp. (IMG-T;IAG-N) under which Iamgold will buy a 50-per-cent interest in the Monster Lake project, which comprises the Monster Lake, Winchester and Lac-a-l'Eau-Jaune properties, for $3.22-million.
Iamgold will also have an option to acquire an additional 25-per-cent interest by spending $10-million in exploration work over a 7-year period, with a minimum of $500,000 to be spent each year. The effective starting date for the exploration work commitment will be Jan. 1, 2015.
Vancouver-based Eurasian Minerals Inc. (EMX-X;EMXX-N) said it has sold its interests in Haiti to joint venture partner Newmont Ventures Ltd., a wholly owned subsidiary of Newmont Mining Corp. (NEM-N), for a $5.3-million cash payment and a retained 0.5 per cent net smelter return royalty interest.
The now terminated EMX-Newmont joint ventures covered six designated exploration areas along a 130-kilometer trend of northern Haiti's Massif du Nord mineral belt. Since 2013, activities in the designated exploration areas have been limited to care and maintenance only.
Pursuant to the transaction, Newmont acquired all of EMX's interest in the Research Permit applications.
Vancouver-based Endeavour Silver Corp. (EDR-T;EXK-N) reported a net loss of $14.1-million, or 14 cents per share, for the third quarter ended Sept. 30., compared to a loss of $11.4-million or 11 cents per share in the year earlier period. Revenue for the quarter rose 5 per cent to $42.7-million, up from $40.5-million a year ago.
Silver production increased 11 per cent to 1,820,282 ounces. Silver sold rose 50 per cent to 1,844,556 ounces. Gold production increased 9 per cent to 15,319 ounces and Gold ounces sold rose 7 per cent to 14,599 ounces.
"The improved top-line performance was a result of higher metal production and lower operating costs both quarter-on-quarter and year-on-year, while the reduced bottom-line performance was due to the negative impact of the falling Mexican peso on current assets and deferred income taxes, and a write-down of marketable security investments," the company said.
Endeavour owns and operates three underground silver-gold mines in Mexico: the Guanacevi mine in Durango state and the Bolanitos and El Cubo mines in Guanajuato state.
Calgary-based Tidewater Midstream and Infrastructure Ltd. (TWM-X) said it has entered into two acquisition agreements with vendors to acquire a 100-per-cent working interest in a gas processing facility and related pipelines and infrastructure for about $17-million, as well as the acquisition of a retail propane business for about $5.2-million.
"The gas plant acquisition includes a five-year propane supply deal with the vendor and creates significant synergies with the retail propane acquisition. It is estimated that the acquisitions will generate annualized EBITDA of approximately $3.7-million resulting in an attractive acquisition multiple of approximately 6 times EBITDA including related synergies identified by management," the company said.
Toronto-based Russel Metals Inc. (RUS-T) said it has promoted John G. Reid to president and chief operating officer, effective Jan. 1, 2016. Mr. Reid has over 22 years of industry experience and has served as the company's COO since 2013. Mr. Reid will report directly to Brian R. Hedges, Russel Metals' CEO.
Toronto-based Sierra Metals Inc. (SMT-T) said Sociedad Minera Corona S.A., in which it holds an 81.8 per cent interest reported revenues of $17.1-million (U.S.) for the third quarter ended Sept. 30, operating cash flow of $12.4-million, and adjusted EBITDA of $2.8-million. The Yauricocha mine produced 1.4 million silver equivalent ounces and copper equivalent production of 9.6 million pounds.
"The decrease in throughput at Yauricocha was due to additional work being performed to drill drainage holes to de-water certain areas of the mine as well as the company's focus on improving mine sequencing and implementing improvements to safety, design and in the mechanized mining methods being used at the mine. These implementations will enable the company to benefit from improved safety practices and production increases in the future," the company said.
Toronto-based Aureus Mining Inc. (AUE-T) said that gold producing operations at the New Liberty Gold Mine have restarted following the repair of its secondary crusher.
Vancouver-based American Hotel Income Properties REIT LP (HOT.UN-T) said it will undertaking three new 24-room expansions at its Oak Tree Inn hotels in North Platte, Nebraska, Hermiston, Oregon and Hearne, Texas. The expansions are being constructed by SunOne Developments Inc. and will cost $6.4-million (U.S.). The expansions will be completed during the first half of 2016 and will be funded with cash on hand, mortgage debt and the issuance of AHIP units. "The expansions are part of AHIP's previously announced railway growth strategy of constructing additional guestrooms at existing, high occupancy Oak Tree Inn hotels that have excess land and strong market demand," the company said.
Winnipeg-based Artis Real Estate Investment Trust (AX.UN-T) said it will acquire Canadian Pacific Plaza, an office tower in Minneapolis, Minn. Artis also said it is selling an office property in the Twin Cities Area, Minn., an office property in the Greater Vancouver Regional District, B.C., and a retail property in Grande Prairie, Alta. The terms of the deals weren't disclosed.