A roundup of some of the North American equities making moves in both directions today
On the rise
Shares of Barrick Gold Corp. (ABX-T, ABX-N) were up 2 per cent on Monday after it withdrew its US$18-billion hostile takeover bid for rival Newmont Mining Corp. (NEM-N).
The companies have signed an agreement to create a joint venture for their operations in Nevada. Barrick will own 61.5 per cent of the JV, which it is projecting to total $5 billion pre-tax net present value over a 20-year period.
“We listened to our shareholders and agreed with them that this was the best way to realize the enormous potential of the Nevada goldfields’ unequalled mineral endowment, and to maximize the returns from our operations there. We are finally taking down the fences to operate Nevada as a single entity in order to deliver full value to both sets of shareholders, as well as to all our stakeholders in the state, by securing the long-term future of gold mining in Nevada,” said Barrick president and CEO Mark Bristow.
In New York, shares of Newmont dipped 0.8 per cent.
Meanwhile, Goldcorp Inc. (G-T, GG-N) was up 1.3 per cent after announcing support for the agreement.
Newmont said it will continue with its bid to acquire the Vancouver-based miner in a US$10-billion deal.
CGI Inc. (GIB-A-T) rose 1.4 per cent after revealing it has made a 4.32 billion Swedish crown ($459-million) cash offer for Swedish peer Acando.
The Montreal-based IT consultancy firm said Acando’s board has unanimously recommended the offer, which is expected to close in the third quarter.
“CGI’s offer to merge with Acando is aligned to the metro-market based element of our acquisition strategy,” said CGI president and chief executive officer George Schindler in a statement. “Our continued investment in CGI’s proximity model is more relevant than ever as clients continue consolidating their partners to a fewer number of trusted ones who have the capabilities, scale, and quality delivery necessary to help drive growth and achieve efficiencies. In fact, client demand for end-to-end services, from consulting and intellectual property-based solutions to outsourcing, continues to accelerate as technology becomes core to our clients’ operations.
Aurora Cannabis Inc. (ACB-T) was up 2.4 per cent in the wake of announcing it has commenced the sale of cannabis oils to German pharmacies.
"Having established early mover advantage in selling cannabis oils in Germany, we are exceptionally positioned to extend our market leadership and accelerate growth of our European operations," said Aurora’s chief global business development officer Neil Belot in a release. "As our global production capacity continues to ramp up, we are able to strategically allocate more product from our EU GMP certified cultivation facilities to this higher margin market that continues to be significantly undersupplied."
HudBay Minerals Inc. (HBM-T) was up 0.8 per cent after announcing Friday after market close that the U.S. Army Corps of Engineers has issued a Section 404 Water Permit for its Rosemont Project.
"The receipt of Rosemont's 404 water permit is a major milestone in our efforts to build a modern mine that will fulfill the requirements of its permits, create jobs and provide benefits for all of our stakeholders," said president and chief executive officer Alan Hair. "There is positive momentum at Rosemont and across our business as we continue to position Hudbay to create long-term and sustainable value for shareholders. We appreciate the diligence that the Army Corps has put into its consideration of Rosemont's permit application, and look forward to advancing Rosemont into construction."
In reaction to the news, an equity analyst at Credit Suisse raised its stock to a “outperform” rating on Monday.
Imperial Metals Corp. (III-T) jumped 56.7 per cent following the US$806-million sale of 70 per cent of its Red Chris mine in B.C. to Newcrest Mining Corp. on the weekend.
An analyst at Canaccord Genuity upgraded its stock, believing its financial concerns “have been fully addressed.”
“We view this transaction as a very good deal for III,” said Dalton Baretto.
Canadian lumber stocks rose in morning trading after a bullish note from an analyst at BMO Nesbitt Burns, who upgraded several stocks in the sector.
Canfor Corp. (CFP-T) was up 5.5 per cent, while West Fraser Timber Co. Ltd. (WFT-T) and Interfor Corp. (IFP-T) increased 5.5 per cent and 7.3 per cent, respectively.
Apple Inc. (AAPL-Q) and Facebook Inc. (FB-Q) rose 3.5 per cent and 1.5 per cent, respectively, after receiving upgrades from equity analysts on Monday.
Methanex Corp. (MX-T) rose 2.4 per cent following a premarket announcement that intends to purchase for cancellation up to 3,863,298 common shares , representing approximately 5 per cent of shares issued and outstanding as of March 8.
“Our announcement of a new share repurchase program builds on a long track record of returning excess cash to shareholders,” said president and CEO John Floren. “The improvements we have made in our business enable us to generate strong earnings and cash flow at a wide range of methanol prices. With a solid liquidity position and strong balance sheet, we have the financial strength and flexibility to meet all of our financial commitments, pursue our growth opportunities and deliver on our commitment to return excess cash to shareholders.”
Ag Growth International Inc. (AFN-T) rose 0.7 per cent after announcing the acquisition of Milltec Machinery Ltd., a manufacturer of rice milling and processing equipment in India, for $109.5-million. The price could rise by an additional $38.4-million based on the achievement of EBITDA targets.
In a research note, Desjardins Securities analyst David Newman said: “Overall, we view the acquisition of Milltec as positive as it serves to increase AGI’s market penetration, expand its platform reach and geographic footprint, and strengthen its complete systems solutions. AGI’s growing presence across a broad range of platforms should increase its value proposition to customers as a single-source supplier with turnkey capabilities on a global scale.”
Tesla Inc. (TSLA-Q) was up 2.4 per cent after backtracking on its plans to close U.S. stores and moved its sales online.
“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced,” the electric carmaker said.
“As a result of keeping significantly more stores open, Tesla will need to raise vehicle prices by about 3 per cent on average worldwide. In other words, we will only close about half as many stores, but the cost savings are therefore only about half.”
On the decline
Boeing Co. (BA-N) stock plummeted 5.6 per cent after China, Indonesia and Ethiopia ordered airlines to ground their Boeing 737 MAX 8 planes, following the second deadly crash involving the jet in just five months.
A Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines crashed minutes after takeoff from Addis Ababa on Sunday, killing all 157 on board. The same model, flown by Lion Air, crashed off the coast of Indonesia in October, killing all 189 on board.
Neo Performance Materials Inc. (NEO-T) dropped 37.4 per cent per cent after announcing a mutual agreement to terminate an acquisition agreement with Luxfer Holdings PLC (LXFR-N).
Luxfer had proposed in December to acquired Neo for US$612-million in cash and stock.
Cronos Group Inc. (CRON-T) sat 4 per cent lower after an equity analyst at BMO Nesbitt Burns downgraded its stock, expressing concern over its current valuation in comparison to peers.
With files from staff and wires
David Leeder