A roundup of some of the North American equities making moves in both directions today
On the rise
Shares of Kirkland Lake Gold Ltd. (KL-T) jumped 8.7 per cent in early afternoon trading on Thursday after the Toronto-based producer increased its 2019 production guidance to 920,000 to 1 million ounces. It also lowered its operating cash costs per ounce sold in 2019 to $300 to $320 (from $360 to $380 previously).
“Since November 2016, Fosterville has been transformed into one of the world’s highest-grade, most profitable gold mines, which has greatly benefited Kirkland Lake Gold and its shareholders,” said president and chief executive Tony Makuch in a statement. “The completion of Fosterville’s December 31, 2018 Mineral Reserve and Mineral Resource estimates, with the related revisions to its life of mine plan and production profile, have taken that transformation to an even higher level, with the potential for much more to come. Largely driven by the 34-per-cent increase in the Fosterville Mineral Reserve grade, we are now on track to achieve significantly higher levels of production at Fosterville in 2019 than previously expected and could reach one million ounces of annual gold production as early as this year. Just as encouraging as the growth in ounces, is the fact that with a higher average grade at Fosterville, as well as at Macassa, our Mineral Reserve ounces are more valuable, which means improved unit costs and increased cash flow per ounce going forward based on current gold prices.”
Kelt Exploration Ltd. (KEL-T) was up 2.9 per cent have reporting 2018 average daily production of 27,006 barrels of oil equivalent, an increase of 22 per cent from 2017. The company’s net present value of proved plus probable reserves rose 48 per cent year-over-year to $2.1-billion.
Osisko Gold Royalties Ltd (OR-T) jumped 6.3 per cent after reporting fourth-quarter revenues of $115.3-million, up from $109.6-million a year ago though below the $126.7-million expectation on the Street.
“We achieved record revenues and cash flow with the full year production from our portfolio of assets acquired from Orion in 2017,” said chair and CEO Sean Roosen. “ During the year, we continued to build on our asset base to position our shareholders to benefit from increasing production and favorable precious metal prices. In less than 5 years we have invested over $2.5 billion in royalty, streaming and offtake assets, as well as in our mining equity portfolio of emerging producers.
On the decline
Shares of Loblaw Cos Ltd. (L-T) fell 1.6 per cent in afternoon trading despite reporting a better-than-expected quarterly profit on Thursday. Excluding items, the company earned $1.07 per share, beating analysts’ average estimate of $1.04 per share. Total revenue of $11.218-billion rose 2.1 per cent from the previous quarter, while adjusted EBITDA was up 1.5 per cent to $895-million.
The company said same-store sales growth came in at 0.8 per cent at its grocery stores. RBC Dominion Securities analyst Irene Nattel called the result “sluggish,” pointing out Metro Inc. logged 3.2 per cent in its most recent quarter.
Cargojet Inc. (CJT-T) was down 1.9 per cent despite reporting fourth-quarter revenue of $132.6-million, an increase of $14.4-million or 12.2 per cent versus the same quarter a year earlier and above expectations of $130.9-million despite headwinds stemming from the Canada Post strike. Adjusted EBITDA of $40.2-million also exceeded the consensus ($39.4-million) and represented a jump of 7.8 per cent from the same period a year ago.
Iamgold Corp. (IMG-T) dropped 6.5 per cent after its revenue in the fourth-quarter fell 6 per cent year-over-year to $274.3-million. It reported an adjusted net loss of 3 cents per share, exceeding the Street’s expectation of 1-cent loss.
"2018 was a year of building for the future while remaining focused on creating superior shareholder value," said president and chief executive Steve Letwin.
A day after rising in response to its fourth-quarter results and a plan to increase gold production at a Manitoba gold mine, shares of Hudbay Minerals Inc. (HBM-T) were down 4.1 per cent . An equity analyst at Raymond James downgraded Hudbay shares, pointing to the plan to increase capital spending during a period of declining copper production.
Finning International Inc. (FTT-T) was down 4.3 per cent after reporting fourth-quarter results that fell short of analyst expectations. The Vancouver-based company reported earnings per share of 33 cents, missing the 48-cent estimate on the Street.
“While demand for our products and services remains strong, we are cognizant of the potential impact of international trade tensions, Brexit, and reduced capital spending in Western Canada. We will focus on controlling what we can with a focus on costs, inventory, and capital spending. Despite the uncertainty, we expect 2019 to show low revenue growth relative to 2018, with continued improvement in return on invested capital across all regions,” said president and chief executive Scott Thomson in a release.
Following Wednesday’s release of weaker-than-expected fourth-quarter results, Uni-Select Inc. (UNS-T) dropped 8 per cent after an equity analyst at Desjardins Securities downgraded its stock. “We await better clarity on the outcome of the strategic review and the performance of each division,” said Benoit Poirier.
Nike Inc. (NKE-N) shares fell 1.3 per cent after Duke University basketball star Zion Williamson, considered the top prospect for this year’s NBA draft, was injured when his Nike sneaker split during a highly anticipated, nationally televised game against rival University of North Carolina on Wednesday night.
“At this juncture, we are optimistic that while negative headlines might weigh upon Nike shares for a bit, any lasting damage to the company and its shares will prove minimal,” Oppenheimer analyst Brian Nagel said in research note.
Domino’s Pizza Inc. (DPZ-N) was down 9.5 per cent after reported a smaller-than-expected rise in quarterly same-store sales in the United States and internationally. Same-store sales at Domino’s company-owned U.S. outlets rose 3.6 per cent, the slowest pace in at least four years, while franchises posted 5.7 per cent growth in the fourth quarter, both well below Wall Street expectations. Analysts on average had expected same-store sales to rise 6.60 per cent at company-owned U.S. stores and 7.25 per cent at franchise stores.
With files from staff and wires
David Leeder