A roundup of some of the North American equities making moves in both directions today
On the rise
Shares of Lundin Mining Corp. (LUN-T) jumped 8.1 per cent on Monday after it announced it has entered into a definitive agreement with Yamana Gold Inc. (YRI-T) to purchase its Chapada copper-gold mine located in Brazil for cash consideration of US$800-million.
In the deal, Yamana will retain a 2-per-cent net smelter return (NSR) royalty on future gold production from the Suruca gold deposit and receive contingent consideration of up to US$125-million over five years if certain gold price thresholds are met and contingent consideration of US$100-million on potential construction of a pyrite roaster.
“The acquisition of Chapada complements Lundin Mining’s existing portfolio of high-quality mines and highlights our focus on disciplined capital allocation to create long-term shareholder value,” said president and chief executive officer Marie Inkster. “Chapada is a well-run, established operation with an experienced local workforce. Leveraging our technical expertise, base metals focus and financial strength, we believe further opportunities exist to create meaningful stakeholder value. The addition of Chapada further solidifies Lundin Mining’s position as a leading intermediate base metals producer with high-quality low-cost copper exposure."
Shares of Yamana Gold were down 3.5 per cent.
Mogo Finance Technology Inc. (MOGO-T) jumped 14.9 per cent after announcing on Monday a “business combination” with Difference Capital Financial Inc. (DCF-T) to create a company called Mogo Inc.
Under the terms of the agreement, each common share of Mogo will be exchanged for one Difference common share Former Mogo shareholders will own approximately 80 per cent of the combined entity on a fully diluted basis.
“The merger with Difference strengthens our financial position and represents a significant opportunity to create value for shareholders of the combined entity,” said Mogo president Greg Feller. “Difference has invested in many of Canada’s leading technology companies and Mogo has built a valuable distribution platform. Shareholders of both companies will benefit from improved financial flexibility as we execute on our strategy of partnering to bring best-in-class products to our more than 800,000 members.”
Shares of Toronto-based Difference Capital dropped 2.3 per cent.
Black Diamond Group Ltd. (BDI-T) rose 4.7 per cent after an equity analyst at Raymond James upgraded his rating for its stock.
“After observing Black Diamond’s share price track the oil sands workforce’s decline with remarkable precision, investors can be forgiven for treating the company as a one-trick pony on Alberta’s once vibrant resource play,” said Andrew Bradford in a research note released Monday. “But that, in our opinion, would ignore the significant efforts management has expended to diversify the business in recent years.”
Canadian Imperial Bank of Commerce (CM-T) rose 0.4 per cent following a Globe and Mail report that it is making significant leadership changes that span wealth management, capital markets and retail banking.
On the decline
Citigroup Inc. (C-N) finished down 0.3 per cent despite reporting a better-than-expected quarterly profit on Monday, due largely to an increase in investment banking revenue and lower expenses.
Citi’s overall revenue fell 2 per cent to US$18.58-billion and missed expectations on the Street, weighed down by a 24-per-cent drop in equities trading.
Net income rose to US$4.71-billion, or US$1.87 per share, for the first quarter ended March 31 from US$4.62-billion, or US$1.68 per share, a year earlier. The Street was projecting US$1.80 per share.
Aphria Inc. (APHA-T) dropped 14.2 per cent after its third-quarter financial results fell short of expectations on the Street.
The Leamington, Ont.-based reported a loss of $108.2-million after taking a one-time non-cash charge related to its operations in Latin America that were the focus of a short-sellers. Aphria also announced that it has struck a deal that will see Green Growth Brands Inc. drop its hostile takeover offer.
Organigram Holdings Inc. (OGI-X) fell 10.2 per cent after it reported net revenue of $26.9-million up from $3.4-million a year ago and ahead of expectations of $23.6-million.
The Moncton-based cannabis producer’s net loss from continuing operations was $6.4-million or 5 cents per share compared to net income of $1.2-million or a penny per share for the same quarter a year earlier.
“We executed very well again this quarter and have established Organigram as one of the leaders in the Canadian adult-use recreational market,” said chief executive officer Greg Engel in a release.
“For the second consecutive quarter, our results reflected operational excellence which translated into record revenue for the Company, industry-leading adjusted gross margin, and positive adjusted EBITDA, all of which differentiates us from most of the Canadian industry today. Our team has already progressed several key initiatives in preparation for the derivative and edibles launch in the fall of 2019. We are excited about the significant growth ahead expected from these new products, our expanding capacity, our strategic partnerships, and our relentless focus on continuous improvement to consistently deliver high quality product to our customers.”
Hudbay Minerals Inc. (HBM-T) dipped 4.1 per cent after announcing a year-over-year drop in production from its Manitoba operations.
The Toronto-based company said copper, gold and silver production from its Manitoba mines were 20 per cent, 21 per cent and 14 per cent lower, respectively, in Q1 2019 from a year earlier.
Boeing Co. (BA-N) sat 1.2 per cent lower after U.S. president Donald Trump on Monday pressed the company to fix and “rebrand” its troubled 737 Max jetliner following two fatal crashes.
Goldman Sachs Group Inc. (GS-N) dipped 3.8 per cent in the wake of the premarket release of quarterly results that fell short of expectations as three of its four main businesses recorded a drop in revenue.
Goldman’s first-quarter profit dropped 20 per cent, with declines across trading, underwriting, investment management and investing and lending. One bright spot was its financial advisory business, where revenue soared 51 per cent on higher deal volumes
The first-quarter profit fell to US$2.2-billion, or US$5.71 per share, from US$2.7-billion, or $6.95 per share, a year ago. The Street was expecting a profit of US$4.89.
With files from wires and staff
David Leeder