A roundup of some of the North American equities making moves in both directions today
On the rise
Barrick Gold Corp. (ABX-T) was up 0.9 per cent after its fourth-quarter gold production estimates came above analysts’ expectations on Thursday, as its Nevada Gold Mines joint venture with Newmont Corp yielded more of the precious metal.
The company said it expects the joint venture - the world’s biggest gold complex - to produce 585 million ounces of gold for the three months ended Dec. 31.
Total preliminary gold production rose 14 per cent to 1.44 million ounces from a year earlier, while analysts were expecting 1.40 million ounces of gold, according to Refinitiv IBES data.
Nevada Gold Mines was formed last year after Barrick pulled its $18-billion hostile bid for Newmont Corp, the world’s largest gold producer, and combined assets with the rival. They both expect to save more than $5 billion over the next 20 years.
Magna International Inc. (MG-T) rose 1.8 per cent after it forecast lower sales for 2020, hurt by a stronger U.S. dollar, the sale of its fluid pressure and controls business and lower light-vehicle output in Europe.
The company also said it discontinued its partnership with Lyft to co-develop self-driving technology. It had invested $200 million in the U.S. ride-hailing firm in 2018 to manufacture self-driving cars.
Magna said it expects 2020 sales to be between $38 billion and $40 billion and net income attributable to be in the range of $1.8 billion to $2 billion.
Analysts on average expect it to report revenue of $39.97 billion and profit of $1.94 billion, according to IBES data from Refinitiv.
Morgan Stanley (MS-N) increased 6.5 per cent after wrapping up the earnings season for big U.S. banks on a resounding note before the bell on Thursday, comfortably beating quarterly profit estimates and raising the possibility that the Wall Street bank could raise its strategic targets.
The bank met most of its key quarterly financial targets set by Chief Executive James Gorman, powered by strength in its bond trading and underwriting businesses.
Morgan Stanley’s robust performance in trading mirrored a similarly upbeat showing from bigger rivals Goldman Sachs (GS-N) and JP Morgan Chase & Co. (JPM-N), thanks largely to easier comparisons with a year ago when financial markets were roiled by trade and global growth concerns.
See also: Goldman Sachs to set ‘very concrete’ expense target after missing profit expectations
U.S. bank executives offer cautious optimism heading into 2020
Organigram Holdings Inc. (OGI-T), the parent company of Organigram Inc., rose 8.9 per cent after it announced it has secured a supply agreement with Medical Cannabis by Shoppers, the online medical cannabis platform by Shoppers Drug Mart Inc.
Under the terms of the agreement, Organigram said it will provide Shoppers with a wide range of products including dried flower, oils and other future derivative products as they become available. The agreement is for a three-year term subject to renewal for an additional two years.
Shares of Organigram soared 44 per cent on Wednesday, as investors bet that the better-than-expected revenues in the recent quarter were a sign the company is faring better than its peers in the battered cannabis sector.
On the decline
Bombardier Inc. (BBD-B-T) plummeted over 31 per cent after it warned of lower 2019 profits on Thursday and said it might have to write down significantly the value of its partnership with Airbus on A220 jets.
Bombardier, which sold control of the A220 to Airbus in 2018 as part of a long-running drive to raise cash and put it on a solid footing, said the venture needed more investment and might be subject to a writedown in fourth quarter results next month.
Separately, Airbus said it remained committed to funding the A220 jetliner on its way to profitability.
Air France, which ordered for 60 A220 jets, has expressed interest in a larger variant of the plane, but Reuters reported in November that Airbus had no current plans to do so.
Bombardier said the A220 program was “winning” with airlines, but latest indications were that it would need more cash to ramp up production, would generate lower returns and would take longer to break even.
“This may significantly impact the joint venture value,” the Canadian company said. “Bombardier will disclose the amount of any write-down when we complete our analysis and report our final fourth quarter and 2019 financial results.”
Kirkland Lake Gold Ltd. (KL-T) was down 1.9 per cent after its $4.4-billion all-stock offer to buy rival Detour Gold Corp. (DGC-T) won backing from two influential proxy advisory firms on grounds the target’s shareholders would reap benefits from a larger company, bolstering chances of the deal going ahead.
Detour Gold said on Thursday that Glass Lewis & Co and Institutional Shareholder Services Inc recommended shareholders vote for in favor of the takeover, which Kirkland has said will generate up to $100 million in annual savings and add 600,000 ounces to its annual capacity.
Detour shares lost 2.1 per cent.
Shares of Tesla Inc. (TSLA-Q) slid 1.5 per cent after an equity analyst at Morgan Stanley downgraded its stock, expressing concerns about a recent rapid appreciation in price.
See also: Musk nears $346-million payday as Tesla market value soars
Iamgold Corp. (IMG-T) slid 6.6 per cent after it announced that its chief executive officer Stephen Letwin plans to retire and president and chief operating officer Gordon Stothart will succeed Mr. Letwin in the role of president and CEO and will join the board of directors, effective March 1.
Separately, Iamgold announced preliminary operating results for 2019, as well as guidance for 2020 and 2021.
For 2019, the company reported "attributable" gold production of 762,000 ounces, which it says is approaching the low end of guidance of 765,000 to 810,000 ounces. Attributable gold production for the fourth quarter 2019 was 192,000 ounces, the company stated.
For 2020, the company is forecasting attributable gold production between 700,000 and 760,000 ounces. For 2021, the company expects increased attributable gold production to be about 10-per-cent higher than 2020 production levels at 760,000 to 840,000 ounces.
With files from Brenda Bouw, wires and staff
David Leeder