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) increased 2 per cent on Tuesday after reaching a friendly agreement to sell its Massawa gold project in Senegal for US$430-million, including contingency payments, to West African gold producer Teranga Gold Corp. (TGZ-T).
The deal is part of Barrick’s ongoing efforts to sell non-core assets acquired through the acquisition of Randgold Resources Ltd. earlier this year.
Toronto-based Teranga will pay Barrick $380-million upfront, consisting of $300-million in cash and $80-million in stock. Barrick stands to receive up to an additional $50-million in cash from Teranga over three years contingent on gold hitting certain levels.
Teranga was up 10 per cent.
- Niall McGee
Gibson Energy Inc. (GEI-T) was up 2 per cent after revealing a 2020 growth expenditure budget of about $300-million after the bell on Monday.
Canaccord Genuity analyst John Bereznicki said: “This figure is at the high-end of Gibson’s preliminary guidance and in line with our estimates. Not surprisingly, the majority ($220 million) of this spending is primarily targeting Gibson’s new DRU and storage capacity at Hardisty, with the US and Edmonton accounting for the balance of the remainder. Gibson expects to remain fully funded on this program and is pursuing additional opportunities that will increase its sanctioned spending as 2020 unfolds. Gibson also expects to spend $25 million in sustaining capital next year (in line) and reports that its Marketing Segment should generate at least $40 million in segment profit in Q4/19 ($9 million ahead of our estimate). We are increasing our 2019 EBITDA estimate to reflect this guidance but are leaving our 2020 outlook largely unchanged”
Cenovus Energy Inc. (CVE-T) was 2.2 per cent higher after it said late Monday it would spend nearly a quarter more in 2020, after the province of Alberta lifted some curtailments on new oil wells last month.
The company said it plans to invest between $1.3-billion and $1.5-billion, nearly 22 per cent higher compared to the mid-point of 2019 forecast.
“This budget positions us well to generate adjusted funds flow of more than $3-billion in 2020 under our price assumptions,” said Chief Executive Office Alex Pourbaix.
Allied Properties Real Estate Investment Trust (AP-UN-T) rose 0.2 per cent after announcing the $276-million acquisition of a “large and important” Class I complex in Montreal late Monday.
The REIT said the complex, located at 747 Square-Victoria St., “will enhance Allied’s ability to serve knowledge-based organizations in urban Montreal as it transforms to a primary North American office market for TAMI (tech, advertising, media and information) users.”
On the decline
Hudson’s Bay Co. (HBC-T) dropped 2.9 per cent after it reported a bigger third-quarter loss on Tuesday, hit by deeper discounts at luxury chain Saks Fifth Avenue and weak sales at its namesake stores, as the Canadian department store operator tries to take itself private.
“Across the industry, there was a pullback among luxury consumers, allowing shoppers to more frequently take advantage of markdowns, which ultimately reduced full-price sales,” Chief Executive Officer Helena Foulkes said in a statement.
Foulkes added the company’s 15-per-cent growth in digital sales, tight lid on cost and increased inventory management were not enough to deliver the financial performance it wanted in the third quarter.
Lululemon Athletica Inc. (LULU-Q) was down 0.6 per cent after revealing its chief operating officer is leaving the company shortly after the new year begins.
The Vancouver-based retailer says Stuart Haselden, who also serves as executive vice-president of international, will leave the company effective Jan. 10.
Enbridge Inc. (ENB-T) slipped 0.3 per cent after it forecast higher core earnings for 2020 and said it had notified the country’s energy regulator that it plans to file an application for contracting the Mainline system before the year-end.
Enbridge said in November it planned to seek the Canada Energy Regulator’s approval to auction off rights to ship crude on its Mainline system, more than a month after the watchdog said the company will not be allowed to offer contracted space on the pipeline to shippers.
Canada holds the world’s third-largest crude reserves but years of regulatory delays and environmental opposition have stymied development of new export pipelines, contributing to falling capital investment and slowing growth in the oil sands.
The company said it expects earnings before interest, taxes, depreciation and amortization (EBITDA) of $13.7-billion next year, compared with its 2019 forecast of $13-billion, partly helped by its Line 3 going into service in Canada.
Enbridge declared a quarterly dividend of 81 cents per share for 2020, up 9.8 per cent from this year.
Ballard Power Systems Inc. (BLDP-T) dropped 3.7 per cent after it announced that it has signed a product development agreement with Hydrogene de France (HDF Energy), an independent power producer dedicated to renewable power generation.
Ballard said the agreement is for the development and integration of a multi-megawatt (MW) scale fuel cell system into HDF Energy’s Renewstable power plant designed for stationary power applications.
Netflix Inc. (NFLX-Q) fell 3 per cent after an equity analyst at Needham and Co. cut the firm’s rating for the media company’s stock, arguing competition from new streaming services could lead to the loss of 4 million premium U.S. subscribers next year.
With files from staff and wires
David Leeder