A weekly look at some small-cap stocks making news - or about to.
Canada’s S&P/TSX Small Cap Index TXTW-I is up about 18 per cent over the past 52 weeks, as of Friday’s close. The index reached a record high of 955.18 on July 23. The Russell 2000 in the U.S. is down about 1 per cent over the past 52 weeks.
Small-cap spotlight
Ballard Power Systems (BLDP-T) shares fell on Friday after the fuel-cell company announced a “bold strategic realignment” that includes slashing operating costs by 30 per cent and aiming to be cash-flow positive by the end of 2027.
It described the restructuring as a “decisive shift” that “marks a fundamental reset” in the company’s operations. It’s the company’s second restructuring-style announcement in less than a year, but comes with the recent appointment of a new chief executive officer.
In a release after markets closed on Thursday, Ballard stated that it’s “shifting from aspirational growth to commercially validated execution” for its fuel-cell technology, following a “robust assessment of customer needs, market dynamics, and Ballard’s own capabilities.”
Ballard develops and manufactures proton exchange membrane fuel cell products for markets such as heavy-duty motive, portable power, material handling as well as engineering services.
The company stated that the changes – which include layoffs, cutting capital expenditures and “rigorously” managing cash – will position it for “disciplined growth, sharper market execution, and stronger financial performance in line with current commercial realities.”
The announcement came weeks after Marty Neese took over as president and CEO of the Vancouver-based company, succeeding Randy MacEwen, who spent 11 years at the helm. Prior to taking over on July 7, Mr. Neese was a director on Ballard’s board for a decade and spent four years as CEO of Verdagy, an electrolysis and green hydrogen company.
“Today’s plan is not about waiting for a market to emerge — it’s about focusing on the market that is‚" Mr. Neese stated in the release.
Ballard said it expects to reduce annualized operating costs by at least 30 per cent in 2026 relative to the first half of 2025, “through immediate workforce adjustments, tighter portfolio integration, and streamlined operations.”
It also plans to prioritize fuel cell products “with the strongest commercial traction,” while discontinuing non-core programs.
“We remain steadfast in our belief that hydrogen and fuel cells are essential to decarbonizing global mobility,” Mr. Neese stated. “This realignment ensures we can lead in this transition — not with hope in a future market, but with discipline, readiness, and focus.”
Ballard announced a restructuring in September last year, including job cuts and a reduction in capital expenditures, citing a slowdown in hydrogen infrastructure development and delayed fuel cell adoption.
In that announcement, which included the replacement of its chief financial officer and chief operating officer, Ballard said it expected the changes to save more than 30 per cent in annualized operating expenses, most of which would be realized in 2025.
Ballard shares have been on a wild ride since the turn of the century. In the spring of 2000, during the dot.com bubble, the stock was trading at around $200 amid hopes that its fuel-cell technology would revolutionize the auto industry by replacing gasoline-powered engines. The bubble popped, along with that fuel-cell dream, causing Ballard’s stock to collapse in 2001.
The company has persevered through many ups and downs since, including another, less dramatic stock run-up in 2021 to nearly $50 per share, before dropping again.
In the past year, the stock has traded between a high of $3.17 and a low of $1.44 on the TSX.
Small-cap summary
Other small caps making news this week:
Coveo Solutions Inc. (CVO-T) shares fell in Friday trading after the software-as-a-service AI company reported a wider-than-expected loss in its first quarter compared to the same period a year ago.
After markets closed on Thursday, the company reported a net loss of US$15.1-million or 16 cents per share compared to a loss of US$5.5-million or 6 cents a year earlier. The expectation was for a loss of 6 cents.
Adjusted EBITDA came in at a loss of US$1.9-million compared to a loss of US$1.7-million last year and was wider than an expected loss of US$1.3-million.
Revenues of US$35.5-million for the quarter ended June 30, up 10 per cent from US$32.2-million a year earlier. The expectation was for revenues of US$35.2-million
In the past 52 weeks, the stock has traded between a high of $9.53 and a low of $4.92 on the TSX.
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Aecon Group Inc. (ARE-T) reported mixed second-quarter earnings and warned of potential negative impacts of tariffs on its operations.
After markets closed Thursday, the Toronto-based construction and infrastructure development company reported revenue of $1.3-billion, up from $853.8-million a year earlier. The result was ahead of expectations of $1.1-billion.
Its loss was $7.5-million or 9 cents per share compared to a loss of $123.9-million or $2.03 a year ago. The expectation was for earnings of 4 cents per share.
“Driven by record backlog of $10.7 billion, solid recurring revenue programs, a robust bid pipeline, and the impact of strategic acquisitions in 2024, revenue in 2025 is expected to be stronger than last year,” Aecon CEO Jean-Louis Servranckx stated in a release.
The company also said it’s monitoring the impact of “announced or threatened tariffs or non-tariff measures” on its operations.
“The introduction of these measures could cause increased purchased material costs and/or reduced availability, as well as delays by some private clients in moving forward with projects,” it stated.
In a note, Canaccord Genuity analyst Yuri Lynk wrote that Aecon delivered “disappointing” headline numbers but that “underlying results remain encouraging and supportive of our ‘buy’ rating.”
In the past 52 weeks, the stock has traded between a high of $29.70 and a low of $15.21.
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NFI Group Inc. (NFI-T) shares fell on Friday after the bus maker’s second-quarter revenues missed expectations and it warned that tariffs are having an impact on the business.
After markets closed on Thursday, the company reported revenue of US$868.2-million, up 2 per cent from US$851.2-million last year. The result was below expectations of $912.3-million, according to S&P Capital IQ.
Its net loss came in at US$160.8-million or US$1.35 per share compared to a profit of US$2.5-million or 2 cents US a year ago.
Adjusted net earnings of US$10.7-million or 9 cents US per share, slightly higher than expectations of 8 cents, and compared to adjusted net earnings of US $3.1-million or 3 cents US a year earlier.
The company also said its fiscal 2025 guidance remains unchanged, including revenues of between US$3.8-billion and US$4.2-billion.
In the release, the company said it was subject to tariffs on imports of steel and aluminum in the U.S. and Canada, and tariffs on imports of goods from some international jurisdictions.
“In addition, NFI also began to receive updated pricing from its suppliers reflecting the impacts of tariffs on input components they source and import into the U.S.,” it stated, adding the impact of tariffs will increase with U.S. tariffs now in place on imports from numerous countries “and as suppliers increase prices to reflect the impact of those tariffs.”
NFI said it believes a “significant portion” of increased tariff costs can be passed on to end customers in the public transit bus and public motorcoach divisions, but could be more difficult to offset in the private coach market.
In the past year, the stock has traded between a high of $19.90 and a low of $9.83
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Canfor Corp. (CFP-T) and Canfor Pulp Products Inc. (CFX-T) shares were down on Friday after the forestry companies reported mixed earnings after markets closed on Thursday, flagging “challenging conditions” that are expected to persist “well into the third quarter.”
Canfor reported sales of $1.379-billion in the second quarter, compared to $1.381-billion a year earlier. The expectation was for revenues of $1.342-billion.
Its adjusted net loss was $67-million or 56 cents per share, an improvement from an adjusted net loss of $168.7-million or $1.42 per share a year ago. The expectation was for a loss of 34 cents in the most recent quarter.
“While our European operations produced solid earnings this quarter, the North American market continued to experience significant challenges reflecting the impact of sluggish demand and a persistent weak pricing environment,” stated CEO Susan Yurkovich in a release.
“With punitive U.S. softwood lumber duties combining with ongoing global economic and trade uncertainty, we remain focused on what we can control and will continue to leverage our globally diversified operating platform to combat these headwinds.”
Canfor Pulp reported sales of $177.9-million compared to $220-milllion a year ago. The expectation was for sales to come in at $170-million.
Its net loss was $6.7-million or 10 cents per share, more than the expected loss of 6 cents per share, and compared to a loss of $6.3-million or 10 cents last year.
Ms. Yurkovich said the second-quarter results in the pulp business were impacted by trade policy uncertainty between China and the U.S., “which slowed pulp purchasing activity and gave rise to climbing pulp producer inventory levels and a declining U.S.-dollar pulp pricing environment.
“We anticipate that these challenging conditions will persist well into the third quarter.”
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Others from earlier this week:
Lightspeed Commerce Inc.’s (LSPD-T) reported a 15-per-cent jump in first-quarter sales that beat expectations but adjusted net income was lower compared to the year-ago period.
Before markets opened on Thursday, the Montreal-based payments platform company reported revenues of US$304.9-million for the quarter ended June 30, up from US$266.1-million a year earlier. The expectation was for revenue of US$287.2-million in the latest quarter.
A net loss of US$49.6-million or 35 cents US per share compared to a net loss of US$35-million or 23 cents US per share. Adjusted income was US$7.9 million or 6 cents US per share compared to US$16.1-million or 10 cents US per share a year ago. The expectation was for adjusted earnings of 13 cents US per share.
Adjusted EBITDA came in at US$15.9-million compared to US$10.2-million a year ago and slightly above expectations of US$15.4-million.
In its outlook, the company said it expects second-quarter revenue in the range of US$305-million to US$310-million, which is above expectations of US$298.8-million. Adjusted EBITDA is expected to be approximately US$17-million to US$19-million. The expectation is for about US$17.4-million.
In the past 52 weeks, the stock has traded between a high of $26.60 and a low of $10.50.
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Spin Master Corp. (TOY-T) shares hit a 52-week low this week after the toy and games company reported a year-over-year drop in revenue that missed expectations. Some analysts also lowered their price targets on the stock after the earnings release.
Before markets opened on Thursday, Spin Master reported revenue of $400.7-million, a decrease of 2.7 per cent from $412-million last year. The expectation was for revenue to come in at $418.5-million.
The company said the drop was driven by a decrease in toy revenue, partially offset by an increase in digital games revenue.
Its net loss was $46.5-million or 46 cents per share compared to $24.5-million or 24 cent per share a year ago. Its adjusted net loss was $7.4 million or 7 cents per share compared to adjusted net income of $9.6-million or 9 cents per share a year ago. The expectation was for adjusted earnings per share to come in at 8 cents.
Adjusted EBITDA was $28.7-million, compared to $53.6-million year over year.
CEO Christina Miller says in a statement that revenue was down as the company experienced a shift in retailer ordering patterns driven by global tariffs, while double-digit growth in its digital games segment helped offset some of the pressure.
Miller says the company is working to focus on accelerating innovation and scaling its global franchise brands to help navigate the wider economic headwinds.
Canaccord Genuity analyst Luke Hannan lowered his target to $24 from $26 after the earnings, and maintained his “hold” rating.
“In our view, Spin Master shares are likely to remain range-bound until we investors gain visibility that the company can return to growth against a choppy macro backdrop,” he wrote in a note.
Stifel analyst Martin downgraded the stock to “hold” from “buy” and lowered his target to $25 from $33, citing challenges in the toy industry due to tariffs that are affecting the business.
“Management guided for Q3/25 [third quarter] Gross Toy Sales to represent 36 per cent of annual sales, a decline of [about] 500 bps [basis points] versus last year, representing a significant negative change in the outlook,” he wrote in a note. “The resulting lower fixed cost absorption is expected to have a magnified impact on Q3/25 EBITDA.”
Mr. Landry’s forecasts now call for third-quarter adjusted EBITDA of $184-million, down 34 per cent. year over year.
“This is expected to bring TTM [trailing 12 months] EPS to $1.39 the lowest level since COVID,” he wrote. “We believe some investors may lose patience and look elsewhere as a result.”
CIBC analyst Ty Collins also lowered his target price on Spin Master to $26 from $28 and maintained his “neutral” (hold) rating.
In the past 52 weeks, the stock has traded between a high of $35.44 and a low of $20.30.
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Canada Goose Holdings Inc. (GOOS-T) shares sank on Thursday after the puffy-coat company reported a bigger-than-expected quarterly loss for its first quarter ended June 29.
The company, which in May withheld from providing a fiscal 2026 forecast due to tariff-related uncertainty, reported revenue of $107.8-million, up from $88.1-million a year earlier and ahead of expectations of $91.6-million.
However, Canada Goose posted a wider net loss of $125.5-million or $1.29 per share versus a loss of $74-million or 80 cents a year earlier.
Its adjusted loss came in at 91 cents per share, more than the expected 87 cents and compared to 79 cents a year ago.
In the past 52 weeks, the stock has traded between a high of $21.01 and a low of $9.54 on the TSX.
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Algoma Steel Group Inc. (ASTL-T) fell this week after the company suspended its dividend and stated that lower steel shipment volumes and tariffs were a drag on its second-quarter earnings.
After markets closed on Tuesday, the company reported revenues of $589.7-million down from $650.5-million a year earlier. The result was ahead of expectations for $576-million in revenues.
Its net loss of $110.6-million or $1.02 per share compared with net income of $6.1-million or 6 cents a year earlier. The expectation was for a loss of 55 cents.
Algoma Steel says it paid $64.1-million in tariffs during the quarter.
Last week, the company said it is seeking $500-million in federal support as it faces continued uncertainty from U.S. tariffs on Canadian steel.
The company also decided to suspend its dividend, citing “increased volatility in steel markets and uncertainty surrounding trade policy and tariffs,” adding that the decision “reflects the board’s prudent approach to capital allocation and its commitment to preserving liquidity and financial flexibility in the face of evolving market conditions.”
In the past 52 weeks, the stock has traded between a high of $16.83 and a low of $5.91.
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Dye & Durham Ltd. (DND-T) shares closed up 27 per cent in Wednesday trading after the legal software company, which has been in a proxy fight with its second-biggest investor, Plantro Ltd., announced late Tuesday that its board has initiated a review of strategic alternatives, including a possible sale.
The company also stated that it struck a “cooperation agreement” with major investor Plantro, controlled by former Dye & Durham CEO Matt Proud, which had been pushing for a sale of the company.
In a statement, Dye & Durham said the strategic review is intended to maximize value for all shareholders and may include a sale of the company, asset sales, recapitalizations or potential mergers.
Dye & Durham said the co-operation agreement with Plantro sees the investor withdraw its special meeting requisition to shake up the board. As part of this agreement, David Danziger – one of Plantro’s nominees in the proposed board change - will join the board and serve as chair of a newly formed special committee tasked with leading the strategic review.
“Over the past several weeks, the board has engaged with shareholders to carefully consider Dye & Durham’s next steps,” board chair Arnaud Ajdler said in a statement. “We appreciate the constructive and pragmatic engagement that we have had with Plantro and Matt Proud toward our shared goal of enhancing value for the company’s shareholders, and we are pleased to have reached a resolution.”
In the same release, Mr. Proud stated that “as one of the company’s largest and longest-standing shareholders, we are pleased to have reached a constructive agreement with the board that provides the basis to thoughtfully pursue a sale of the company to preserve and maximize value for all shareholders.”
In a separate release before markets opened on Wednesday, the company announced new leadership appointments, including an interim chief financial officer, Sandra Bell, effective immediately following the departure of Avjit Kamboj.
It also appointed Chris Louie as chief marketing officer and Corey Banks as chief legal officer. Mr. Louie was most recently an executive at Thomson Reuters. Mr. Banks was most recently with Therium Capital Management and previously practiced law at Wachtell, Lipton, Rosen & Katz.
Read the Globe’s full story here: Dye & Durham ‘soap opera’ continues as company goes on block again and makes senior-level changes
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Precision Drilling Corp. (PD-T) shares closed up by about 7 per cent in Wednesday trading after the company reported second-quarter earnings that beat expectations.
After markets closed on Tuesday, the drilling-rig contractor and oil field rental and supply company reported revenue of $407-million compared to $429-million in the second quarter of 2024. The result was ahead of expectations of revenue of $397.3-million for the latest quarter.
“The decrease was mainly attributable to lower U.S. and international activity and day rates, as well as a decline in well service activity,” the company stated.
Net earnings attributable to shareholders were $16-million or $1.21 per share compared to $21-million or $1.44 per share.
Adjusted EBITDA was $108-million, down from $115-million last year but ahead of expectations of $93.2-million.
CIBC analyst Jamie Kubik increased his target price on the stock to $100 from $95 after the earnings and maintained his “outperformer” (buy) rating.
“Robust Canadian margins (driven by customer-funded rig upgrades) came in above our expectations,” he wrote in a note, adding that the company increased its 2025 capital expenditures guidance to fund rig updates, which we take as a good signal.”
He also noted that the company’s “leverage profile continues to improve” and expects it to increase its share buyback activity later this year, given that it is ahead of schedule on debt repayment progress.”
In the past 52 weeks, the stock has traded between a high of $109.20 and a low of $51.38 on the TSX.
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Canopy Growth Corp. (WEED-T) shares closed up about 4 per cent in Wednesday trading after the company announced an agreement to reduce its term loan by US$50-million, reducing its annual cash interest by US$6.5-million.
After markets closed on Tuesday, the cannabis company announced it made three prepayments to reduce the senior secured term loan by March 31, 2026.
“These prepayments reflect our continued focus on strengthening our balance sheet and lowering cash interest expense,” said CEO Luc Mongeau. “Reducing debt is essential to creating the financial flexibility Canopy Growth needs to drive sustainable growth now and in the future.”
In connection with the agreement, the company’s Canopy USA, LLC secured an additional US$22-million in funding for Acreage Holdings Inc. and its subsidiaries.
In the past 52 weeks, the stock has traded between a high of $11.11 and a low of $1.08 on the TSX.
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Sherritt International Corp. (S-T) shares fell by more than 3 per cent in Wednesday trading after the company announced it was lowering its full-year production guidance range. It also announced cost-cutting measures, including a 10-per-cent workforce reduction.
After markets closed on Tuesday, and within its second-quarter financial report, Sherritt revised its finished nickel production guidance range from 31,000 to 33,000 tonnes to 27,000 to 29,000 tonnes and its finished cobalt production guidance range from 3,300 to 3,600 tonnes to 3,000 to 3,200 tonnes.
The company also said it’s looking for ways to decrease or defer certain capital spending items and stated that, as a result, 2025 guidance for sustaining capital has been reduced from $35-million to $30-million and the tailings facility spending has been reduced from $40-million to $35-million.
It said the guidance range for electricity production is expected to be at the lower end of the 2025 guidance range of 800 GWh to 850 GWh.
The company also reported net earnings from continuing operations of $10.4-million, or $0.02 per share for its second quarter ended June 30, compared to a loss of $11.5-million or 3 cents a year earlier..
The adjusted net loss from continuing operations was $25.6-million or 6 cents per share, which the company said primarily excludes a $32.4-million gain on its debt and equity transactions completed in the quarter. The expectation was for a loss of 7 cents. The result compares to a loss of $10-million or 3 cents last year.
Revenues of $43.7-million compared to $51.4-million a year ago.
It said the cost reduction initiatives are expected to save it about $20-million annually and are in addition to the $17-million in annualized savings achieved through the 2024 cost-cutting initiatives.
National Bank Financial analyst Shane Nagle reiterated a “sector perform” rating after the late Tuesday announcement as well as a 25-cent price target. He said in a note that his rating “accounts for a lower debt burden, improving operational outlook at the Moa JV [joint venture] offset by equity dilution from recent debt restructuring, a challenging nickel market as well as continued pressure on by-product prices, uncertainty on timing of Moa JV cobalt deliveries under the swap agreement and need for delivering anticipated growth initiatives at Moa.”
In the past 52 weeks, the stock has traded between a high of 24 cents and a low of 12 cents.
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Richards Packaging Income Fund (RPI-UN-T) reported higher revenue but lower profit for its second quarter ended June 30.
After the market closed on Monday, the fund reported revenues of $110.1-million, up from $107.4-million last year, and ahead of expectations of $101-million.
Net income of $3.5-million or 32 cents per unit compared to $11.8-million or 83 cents last year. Adjusted EBITDA of $14.6-million compared with $15.1-million last year.
The company said revenues for its food and beverage packaging division were “challenged” in the second quarter.
“The month of May was particularly challenged in the U.S. as the then-escalating US-China tariff feud caused a major pull-back in buying as customers opted to run down current inventories rather than risk becoming stuck with high-cost goods,” the company stated, adding that June is “returning to prior performance trends” and management is confident in “our ongoing turnaround performance.”
It also said its cosmetic business experienced a similar tariff headwind in May, but was offset by stronger results in April and June.
“In sum, our business units are performing well despite macroeconomic hiccups and with important channel launches on the horizon and significant recent acquisitions, we are well positioned for a strong second half of 2025,” the company stated.
Acumen Capital analyst Jim Byrne, who has a “buy” on the company, increased his target to $42 from $40 after the earnings.
“The company generates significant free cash flow, and we anticipate a return to organic and inorganic growth in the coming quarters. We believe that with improved product mix, margin expansion should follow as well,” he wrote.
In the past 52 weeks, the units have traded between a high of $33.40 and a low of $25.90 on the TSX.
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Secure Waste Infrastructure Corp. (SES-T) reported second-quarter earnings that were below expectations.
Before markets opened on Tuesday, the company reported revenue of $353-million for the quarter ended June 30, lower than expectations of $356.3-million.
The company said it recorded net income of $31-million or 14 cents per share, relatively flat from the same period last year and up 17 per cent on a per share basis due to the share buybacks over the past year reducing the weighted average shares outstanding in the quarter by 15 per cent.
“Our second quarter results were in line with expectations and reflected the typical seasonal impacts of spring break-up,” stated CEO Allen Gransch in a release. “Despite these seasonal effects, as well as macroeconomic challenges, including active forest fires, and ongoing pressure in the ferrous metals market linked to U.S. tariffs and broader recessionary concerns, our infrastructure-backed business model continues to demonstrate strength.”
The company also maintained its full-year 2025 adjusted EBITDA guidance of $510-million to $540-million, “supported by higher volumes and pricing, contributions from organic growth projects, and long-term industry fundamentals.”
National Bank Financial analyst Michael Doumet, who has an “outperform” (buy) and $7.50 price target on the stock, said he was expecting a small cut to guidance given the company’s cautious outlook in the first quarter and tariff-related headwinds in metal recycling, as well as forest fires.
“However, despite the headwinds, SES’s described offsetting strength from ‘higher volumes and pricing, contributions from organic growth projects, and long-term industry fundamentals’ (and maybe more than expected ‘sufficient flexibility’ in its guidance) was enough to maintain its guide,” he wrote. (SES is referring to the company’s ticker symbol). “All said, we think SES ‘scores points’ here as it demonstrates to the market that it can withstand some macro headwinds and still generate consistent/resilient results.”
In the past 52 weeks, the stock has traded between a high of $17.23 and a low of $11.12 on the TSX.
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Surge Energy Inc. (SGY-T) shares hit a 52-week high this week after the company announced that it had increased its 2025 production guidance and lowered its capital budget.
After markets closed on Monday, the company said average 2025 production guidance has increased from 22,500 barrels of oil per day (boepd) to 23,000 boepd, while budgeted capital expenditures for 2025 are now estimated to be $155-million, down from $170-million.
The company also reported second-quarter earnings, including sales of $141.2-million, down from $173.2-million a year ago.
Net income of $31.9-million or 32 cents per share compared to a loss of $64.7-million or 64 cents.
Acumen Capital analyst Trevor Reynolds said the results came in ahead of his expectations and consensus and the higher production and lower capital expenditures were positives.
“Overall, the changes are expected to provide additional free cash flow for leverage reduction and share buybacks. We include the changes to the guidance below,” he wrote.
Mr. Reynolds increased his price target to $10.50 from $10 and kept his “buy” rating.
“Overall, the outlook for SGY remains intact with a continued focus on operational performance and return of capital,” he wrote. (SGY is the company’s ticker symbol).
Canaccord Genuity analyst Mike Mueller reiterated his “buy” rating and increased his price target to $9 from $8 after the earnings.
National Bank Financial analyst Dan Payne increased his target to $9.50 from $9 and kept his “outperform” (buy) rating.
“Another strong performance from the company, where asset performance continues to underpin improvements to corporate sustainability, excess returns and value,” he wrote in a note.
In the past 52 weeks, the stock has traded between a high of $7.84 (on July 29) and a low of $4.37 on the TSX.
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New Gold Inc. (NGD-T) reported mixed earnings results this week for its second quarter ended June 30.
Before markets opened on Monday, the company reported revenue of $308.4-million, up from $218.2-million a year ago. The expectation was for revenue of $320-million.
Net earnings of $$68.6-million or 9 cents per share compared to $53.1-million or 7 cents a year ago. Adjusted earnings per share (EPS) were 11 cents compared to 2 cents last year. The expectation was for adjusted EPS of 10 cents.
“We view the Q2/25 results as a mixed print,” Canaccord Genuity analyst Jeremy Hoy said in note.
He said gold and copper production missed and beat his estimate (gold down 8 per cent and copper up 14 per cent) while cash costs and AISC [all-in sustaining costs] were in line.
He maintained his “buy” rating and $8.25 target price.
CIBC Capital Markets analyst Anita Soni increased her target to $6.50 from $6.25 and reiterated her “outperformer” (buy) after the earnings release. She said the EPS beat her estimate of 6 cents “on the back of lower operating costs, depreciation, and taxes, partially offsetting the lower-than-estimated gold production.” She noted that free cash flow of $63-million represented a quarterly record.
“We believe focus will remain on New Gold’s free cash flow set-up for the back half of this year, which remains intact,” she wrote.
In the past 52 weeks, the stock has traded between a high of $6.95 and a low of $2.79 on the TSX.
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Tilray Brands Inc. (TLRY-T) shares sank earlier this week after the cannabis company’s fourth-quarter revenues and net earnings missed expectations, although adjusted earnings beat.
After markets closed on Monday, Tilray reported revenues of US$224.5-million for the quarter ended May 31, compared to US$229.9-million in the prior-year quarter. The expectation was for revenues of US$233.3-million.
Its net loss of US$1.27-million or US$1.30 per share compared to a net loss of US$15.4-million or 4 cents US last year, which the company said was mostly due to non-cash expenses. The expectation was for a loss of three cents.
Adjusted net income of US$20.2-million or 2 cents US compared to US$35.1-million or 4 cents US in the prior-year quarter. The expectation was for zero cents per share in the latest quarter.
Adjusted EBITDA was US$27.6-million in the fourth quarter compared to US$29.5-million in the prior year quarter.
In the past 52 weeks, the stock has traded between a high of $2.97 and a low of 48 cents on the TSX.
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Private equity funds run by Brookfield Asset Management Ltd. (BAM-T) and Birch Hill Equity Partners Management Inc. announced this week they’re buying a majority stake worth nearly $1.8-billion in First National Financial Corp. (FN-T), the mortgage company co-founded by billionaire Canadian financier Stephen Smith.
Brookfield and Birch Hill are paying $48 a share in cash to jointly acquire 62 per cent of First National, giving the company a total equity value of $2.9-billion. The offer is a 13-per-cent premium to Friday’s closing price and 15 per cent higher than First National’s average share price over the past 30 days.
Read the Globe’s full story here
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McEwen Inc. (MUX-T) announced this week that it’s buying Canadian Gold Corp. (CGC-X), owner of Manitoba’s Tartan Mine.
Before markets opened on Monday, the companies said the proposed transaction sees Canadian Gold shareholders get 0.0225 of a McEwen common share, which represents a price of 35 cents per Canadian Gold share. The value is a 26-per-cent premium to the 30-day volume weighted average price of Canadian Gold Shares as at market close on July 25. Canadian Gold shareholders will own approximately 8.2 per cent of the combined company.
“I am enthusiastic about the Tartan Mine for several reasons. First, it is a high-grade gold deposit with strong exploration potential in Canada. Second, the existing infrastructure, including the mine ramp, roads, and power, provides an opportunity to restart operations within a relatively short timeframe. Third, Manitoba stands out as one of the world’s premier mining jurisdictions, offering a skilled workforce, low-cost renewable energy, and attractive mining tax credits,” McEwen CEO Rob McEwen stated in a release.
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Torex Gold Resources Inc. (TXG-T) announced this week that it’s buying Prime Mining Corp. (PRYM-T), owner of the Los Reyes gold-silver project in Mexico, in a deal valued at about $449-million.
Before markets opened on Monday, the companies said Prime shareholders will receive 0.060 of a Torex share for each Prime share. It said the exchange ratio represents a price of $2.57 per Prime based on the closing price of the Torex Shares on the TSX on July 25.
The deal comes weeks after Torex acquired junior Reyna Silver, which has early-stage exploration projects in northern Mexico and Nevada.
“The acquisition of Prime Mining, and the previously announced all-cash acquisition of Reyna Silver, support our strategy to systematically build a diversified, Americas-focused precious metals producer,” Torex CEO Jody Kuzenko stated in a release.
Canaccord Genuity analyst Jeremy Hoy described the “strategic rationale for the acquisition as sound,” in a July 28 note.
“Following the June 23 announcement of the all-cash $26-million acquisition of Reyna Silver, the addition of Prime Mining further builds out Torex’s development pipeline in Mexico, this time with a more advanced asset hosting a sizeable resource... .”
Mr. Hoy said Torex remains a “best idea” among his coverage universe.
In response to Monday’s announcement, TD Cowen’s Steven Green downgraded Prime Mining to “sell” from “buy” with a $3.75 target, down from $5. Other changes include: Stifel’s Ralph Profiti to “hold” from “buy” with a $2.57 target, down from $4.75 and Desjardins Securities’ Allison Carson to “tender” from “buy” with a $2.57 target, falling from $4.75. The average on the Street is $3.35.
Ms. Carson raised her target for Torex shares to $65 from $63, keeping a “buy” rating. The average is $60.81.
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Financial services giant iA Financial Corporation Inc. (IAG-T) has scooped up one of Canada’s largest independent wealth managers, RF Capital Group Inc. (RCG-T), in an all-cash $597-million deal, adding about 189 investment advisers and $40.3-billion in assets under administration.
On Monday, Quebec-based iA Financial announced it has agreed to purchase RF Capital – an advisory firm known as Richardson Wealth, which is partly owned by Winnipeg’s prominent Richardson family – for $20 a share, valuing the company at a 107-per-cent premium over Friday’s closing price of $9.65.
The acquisition, which still needs regulatory and shareholder approval, includes a $370-million equity valuation and $227-million in financial obligations for debt and preferred shares.
Read the Globe’s full story here
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Upcoming small-cap earnings:
Aug. 4: BTB Real Estate Investment Trust (BTB-UN-T)
Aug. 5: CT REIT (CRT-UN-T), Pet Valu Holdings Ltd. (PET-T), Stingray Group Inc. (RAY-A-B), Dream Industrial REIT (DIR-UN-T), Kneat.com Inc. (KSI-T)
Aug 6: Killam Apartment REIT (KMP-UN-T), Cargojet Inc. (CJT-T), BSR REIT (HOM-U-T), Curaleaf Holdings Inc.(CURA-T), Pason Systems Inc. (PSI-T), Total Energy Services Inc. (TOT-T), Extendicare Inc. (EXE-T), Centerra Gold Inc. (CG-T), Trulieve Cannabis Corp. (TRUL-CN), Step Energy Services Ltd. (STEP-T), Thinkific Labs Inc. (THNC-T), Propel Holdings Inc. (PRL-T), Kits Eyecare Ltd. (KITS-T), Doman Building Materials Group Ltd. (DBM-T), Andrew Peller Ltd. (ADW-A-T), Premium Brands Holdings Corp. (PBH-T), American Hotel Income Properties REIT LP (HOT-UN-T), Goeasy Ltd. (GSY-T), Aurora Cannabis Inc. (ACB-T), Fortuna Mines Inc. (FVI-T), InterRent Real Estate Investment Trust (IIP-UN-T), Canaccord Genuity Group Inc. (CF-T), Savaria Corp. (SIS-T), Telesat Corp. (TSAT-T), Sprott Inc. (SII-T), Algoma Central Corp. (ALC-T)
Aug. 7: Western Forest Products Inc. (WEF-T), Alaris Equity Partners Income Trust (AD-UN-T), Russel Metals Inc. (RUS-T), Artis REIT (AX-UN-T), Black Diamond Group Ltd. (BDI-T), Altus Group Ltd. (AIF-T), Interfor Corp. (IFP-T), Hut 8 Corp. (HUT-T), Flagship Communities Real Estate Investment Trust (MHC-UN-T), TerrAscend Corp. (TSND-T), Slate Grocery REIT (SGR-UN-T), Silvercorp Inc. (SVM-T), MDA Space (MDA-T), Maple Leaf Foods Inc. (MFI-I), Dream Office REIT (D-UN-T), Pizza Pizza Royalty Corp. (PZA-T), Alaris Equity Partners Income Trust (AD-UN-T), Energy Fuels Inc. (EFR-T), Tucows Inc. (TC-T), Supremex Inc. (SXP-T), ATS Corp. (ATS-S), Aris Mining Corp. (ARIS-T), Medical Facilities Corp. (DR-T), High Liner Foods Inc. (HLF-T), Cronos Group Inc. (CRON-T), Cipher Pharmaceuticals Inc. (CPH-T), Knight Therapeutics Inc. (GUD-T)
Aug. 8: Boralex Inc. (BLX-T), Ensign Energy Services Inc. (ESI-T), Fiera Capital Corp. (FSZ-T), Canopy Growth Corp. (WEED-T), Dorel Industries Inc. (DII-B-T)
Aug. 11: K92 Mining Inc. (KNT-T), Ballard Power Systems (BLDP-T), Quipt Home Medical Corp. (QIPT-T)
Aug. 12: Westport Fuel Systems Inc. (WPRT-T), Sienna Senior Living Inc. (SIA-T), Superior Plus Corp. (SPB-T), Cineplex Inc. (CGX-T), Dream Unlimited Corp. (DRM-T), Grown Rogue International Inc. (GRIN-CN), Rogers Sugar Inc. (RSI-T)
Aug. 13: H&R REIT (HR-UN-T), Bird Construction Inc. (BDT-T), Galiano Gold Inc. (GAU-T), Minto Apartment REIT (MI-UN-T), Pollard Banknote Ltd. (PBL-T), KP Tissue Inc. (KPT-T), AutoCanada Inc. (ACQ-T), Frontera Energy Corp. (FEC-T), K-Bro Linen Inc. (KBL-T), Pro REIT (PRV-UN-T), Boyd Group Services Inc. (BYD-T), Quarterhill Inc. (QTRH-T), Calian Group Ltd. (CGY-T),
Aug. 14: Automotive Properties Real Estate Investment Trust (APR-UN-T), Chemtrade Logistics Income Fund (CHE-UN-T), North American Construction Group Ltd. (NOA-T), DRI Healthcare Trust (DHT-UN-T), Bragg Gaming Group Inc. (BRAG-T), Profound Medical Corp. (PRN-T), Well Health Technologies Corp. (WELL-T), Boston Pizza Royalties Income Fund (BPF-UN-T), HLS Therapeutics Inc. (HLS-T)
Aug. 20: Corby Spirit and Wine Limited (CSW-A-T)
Sept. 24: AGF Management Ltd. (AGF-B-T)
- with files from Dave Leeder, Reuters and Globe staff