A roundup of some of the North American equities making moves in both directions today
On the rise
Kinross Gold Corp. (K-T) soared on Friday in response to its reintroduction of a dividend ahead of the Denver gold conference.
After the bell on Thursday, the Toronto-based miner declared a quarterly dividend of 3 US cents per share, which Mr. Wolfson noted represents 1.3-per-cent yield, in line with senior producers (which range from 1.0-1.5 per cent).
At the same time, Kinross introduced three-year guidance, which includes expected production growth of 20 per cent to 2.9 million gold equivalent ounces (GEO) in 2023. However, capital spending is also expected to rise, exceeding the expectations of the Street.
In a research note, Canaccord Genuity analyst Carey MacRury said: " Our key takeaway from the guidance update is the confirmation of a strong FCF [free cash flow] profile; we expect 20-per-cent production growth and a declining capital profile amid strong metal prices to drive significant FCF. We forecast FCF potentially approaching $1.8-billion by 2023 based on Kinross’s capital projections and a FCF yield of 16 per cent from essentially nil in 2019. At $1,500/oz, we estimate just under $1-billion in FCF (8-per-cent yield)."
“With an improving FCF profile, strong execution, and one of the most inexpensive senior producers at 0.7 times NAV vs. senior peer average of 1.0 times, Kinross remains a top pick.”
Westport Fuel Systems Inc. (WPRT-T) jumped after it announced that its Weichai Westport Inc. joint venture has received certification from the Ministry of Ecology and Environment of China for its 12-litre engine equipped with the HPDI 2.0 fuel system.
“WWI is now in a position to market and sell the heavy-duty natural gas engines with HPDI technology to various truck original equipment manufacturers,” the company stated.
“Following the delays introduced by COVID-19, I’m pleased to recognize the leadership of the Weichai Westport joint venture team in securing the certification from the MEE,” said David Johnson, CEO of Westport Fuel Systems.
In the wake of soaring more than 30 per cent on Thursday after raising US$700-million in the largest technology initial public offering ever on the Toronto Stock Exchange, Montreal payments-processing company Nuvei Corp. (NVEI-T) continued to rise in early trading on Friday.
Nuvei stock, which is quoted in Canadian and U.S. dollars, opened at C$45.25 and US$34 Thursday as it began trading on an “if, as and when issued” basis just before formal launch. That’s more than 30 per cent higher than its US$26 issue price. The stock closed at C$45.05, giving Nuvei a market capitalization of C$5.7-billion – and making it one of Canada’s most valuable publicly traded technology companies.
It also cemented chief executive officer and founder Philip Fayer’s status as Canada’s newest billionaire, with a stake worth C$1.5-billion.
- Sean Silcoff
Shares of Sequoia-backed startup Unity Software Inc. (U-Q) jumped in their debut on the New York Stock Exchange on Friday, signaling sustained demand for new stocks.
The company’s stock opened at US$75 per share, giving the firm a market value of US$19.75-billion.
The Silicon Valley startup on Thursday raised $1.3 billion in its IPO, after pricing 25 million shares at US$52 apiece, much above its upwardly revised price range of US$44 to US$48 per share.
It is the second US$1-billion-plus U.S. software IPO this week to price above the targeted range after data warehouse company Snowflake Inc raised more than US$3-billion in the largest U.S. listing so far this year.
Unity’s software platform is widely used by game developers, artists, architects and filmmakers to create, run and monetize interactive 3D content.
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Moderna Inc. (MRNA-Q) was up after saying it expects to produce 20 million doses of its experimental coronavirus vaccine by the end of the year.
The company continues to expect to make 500 million to 1 billion doses of the vaccine in 2021, Moderna said in a filing with the U.S. securities regulator.
There are currently no COVID-19 vaccines approved by U.S. regulators, although a handful are in late-stage trials to prove they are safe and effective.
Moderna’s COVID-19 vaccine is among the furthest in development and the company had enrolled 25,296 participants out of a planned 30,000 in its late-stage study as of Wednesday.
The Centers for Disease Control and Prevention anticipates that 35 million to 45 million doses of vaccines from the first two companies to receive authorization will be available in the United States by the end of this year.
On the decline
Barrick Gold Corp. (ABX-T) slid on Friday after it said it would not appeal a Chilean court’s ruling to uphold the closure order on the Chilean portion of its Pascua-Lama project imposed by the country’s environmental regulator and the sanctions on its unit.
The gold and silver project, which straddles the border between Chile and Argentina, was put on hold in 2013 due to environmental issues, political opposition, labor unrest and development costs that swelled to $8.5-billion.
The miner said Pascua, the Chilean portion, would now be transitioned from care and maintenance to closure in accordance with the environmental court’s decision.
In its ruling dated Sept. 17, the court said the company had failed to implement a set of measures to strictly comply with its environmental license and consequently was not able to adequately protect the environment and people’s health.
Oracle Corp. (ORCL-N) declined amid news the Trump administration will ban WeChat and video-sharing app TikTok from U.S. app stores starting Sunday night, a move that will block Americans from downloading the Chinese-owned platforms over concerns they pose a national security threat.
The bans, announced on Friday, affect only new downloads and updates and are less sweeping than expected, particularly for TikTok, giving its parent group ByteDance some breathing space to clinch an agreement over the fate of its U.S. operations.
WeChat, an all-in-one messaging, social media and electronic payment app, faces more severe restrictions from Sunday. Existing TikTok users, on the other hand, will see little change until Nov. 12 when a ban on some technical transactions will kick in, which TikTok said would amount to an effective ban.
“We disagree with the decision from the Commerce Department, and are disappointed that it stands to block new app downloads from Sunday and ban use of the TikTok app in the U.S. from Nov. 12,” the company said in a statement. “We will continue to challenge the unjust executive order, which was enacted without due process and threatens to deprive the American people and small businesses across the U.S. of a significant platform for both a voice and livelihoods.”
Commerce Secretary Wilbur Ross told Fox Business Network that “the basic TikTok will stay intact until Nov. 12.”
The ban on new U.S. downloads of the widely popular app could still be rescinded by President Donald Trump before it takes effect if ByteDance seals a deal with Oracle that addresses concerns about the security of its users' data.
“This is the right move - ratchet up the pressure on Beijing, protect Americans,” said Republican Senator Josh Hawley on Twitter.
The Trump administration has ramped up efforts to purge “untrusted” Chinese apps from U.S. digital networks amid escalating tensions with Beijing on a range of issues from trade and human rights to the battle for tech supremacy.
Salesforce.com Inc. (CRM-N) slipped despite Chief Executive Officer Marc Benioff saying on Friday it will create 12,000 jobs over the next year, including 4,000 positions in the coming six months.
Since the COVID-19 outbreak that has forced people to stay and work from home, the company’s online business software that supports remote work and e-commerce has seen significant demand.
The software maker, which recently joined the Dow Jones Industrial Average index, currently employs nearly 54,000 workers globally.
Vancouver-based SSR Mining Inc. (SSRM-T) was higher after updating its full-year 2020 guidance following the successful completion of the merger with Alacer Gold Corp.
The company expects to produce 680,000 to 760,000 gold equivalent ounces from its four operating mines on a consolidated basis at consolidated all-in sustaining costs of $965 to $1,040 per ounce.
With files from Brenda Bouw, staff and wires
David Leeder