"Patience is a Super Power" - "The Money is in the waiting"
Showing posts with label Canada. Show all posts
Showing posts with label Canada. Show all posts

Monday, April 7, 2025

Some top Canadian companies to consider in uncertain times!

 


Identifying top Canadian companies for investment involves evaluating factors such as financial stability, growth potential, dividend history, and market position. Based on recent analyses and market trends, here are several Canadian companies that are often considered strong investment candidates:​

1. Royal Bank of Canada (RY):

2. Toronto-Dominion Bank (TD):

3. Canadian National Railway (CNR):

4. Enbridge Inc. (ENB):

5. Canadian Natural Resources (CNQ):

  • Sector: Energy​Million Dollar Journey

  • Market Position: As one of Canada's largest oil and natural gas producers, CNQ has a diversified asset base.​

  • Dividend Growth: The company has a history of consistent dividend increases, reflecting its financial health. ​Million Dollar Journey

6. Shopify Inc. (SHOP):

  • Sector: Technology​Yahoo Finance

  • Market Position: Shopify is a leading e-commerce platform provider with a global customer base.​

  • Growth Potential: The company's innovative solutions and expanding market presence position it well for future growth.​

7. Fortis Inc. (FTS):

8. Alimentation Couche-Tard (ATD):

9. Telus Corporation (T):

  • Sector: Telecommunications​

  • Market Position: Telus is one of Canada's major telecom providers, offering a range of communication services.​

  • Dividend Yield: The company offers a competitive dividend yield, appealing to income-seeking investors. ​

10. Bank of Montreal (BMO):

  • Sector: Financials​

  • Market Position: BMO is a well-established bank with extensive operations in Canada and the U.S.​

  • Dividend History: The bank has a long history of dividend payments, reflecting its financial stability. ​Savings Grove

These companies represent a cross-section of Canada's diverse economy and have been recognized for their strong fundamentals and growth prospects. However, it's essential to conduct thorough research and consider your individual investment goals and risk tolerance before making any investment

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Friday, March 14, 2025

Silver is often overlooked as an investment and a safe haven. Pan American Silver (PAAS) is a world leader in silver production!

 


As of March 14, 2025, Pan American Silver Corp. (NASDAQ: PAAS) has reported robust financial and operational performance for the fiscal year ending December 31, 2024. Below is a comprehensive overview of the company's financials, production metrics, and asset portfolio.​

Financial Performance

  • Revenue: The company achieved record revenues totaling $2.8 billion for the full year 2024. ​Stock Titan+1tipranks.com+1

  • Net Earnings: Net earnings for FY 2024 were reported at $112.7 million, translating to basic earnings per share of $0.31. ​tipranks.com+2Stock Titan+2Investing News+2

  • Cash Flow: Pan American Silver generated record cash flow from operating activities amounting to $724.1 million in 2024. ​Investing News

Cash and Cash Equivalents

Operating Costs

Production in 2024

Mine Production Details

As of March 14, 2025, Pan American Silver Corp. operates the following mines across the Americas:​

Mexico:

Peru:

  • Huarón Mine: Located in the Pasco Region, this mine is known for its polymetallic deposits, including silver, zinc, lead, and copper. ​en.wikipedia.org

Bolivia:

  • San Vicente Mine: Situated in the Potosí Department, this mine produces silver, zinc, and lead. ​en.wikipedia.org

Argentina:

  • Cerro Moro Mine: Located in Santa Cruz, this mine produces both silver and gold. ​en.wikipedia.org

Brazil:

Chile:

  • El Peñón Mine: Located in the Antofagasta Region, this mine produces both gold and silver. ​panamericansilver.com

  • Minera Florida Mine: Situated in the Santiago Metropolitan Region, this mine produces gold, silver, and zinc. ​en.wikipedia.org

Canada:

  • Timmins Mine: Located in Ontario, this is a gold-producing mine. ​

  • Whitney Mine: Situated in Ontario, this mine is part of the company's gold segment. ​panamericansilver.com

Peru:

  • Shahuindo Mine: Located in the Cajamarca Region, this mine produces gold and silver. ​

These operations underscore Pan American Silver's extensive mining activities across the Americas, focusing on the production of silver, gold, zinc, lead, and copper.​panamericansilver.com+2panamericansilver.com+2panamericansilver.com+2

Total Assets and Mineral Reserves

  • Total Assets: As of December 31, 2024, Pan American Silver's total assets were valued at approximately $6.5 billion. ​

  • Mineral Reserves:

    • Proven and Probable Silver Reserves: Approximately 550 million ounces.​
    • Proven and Probable Gold Reserves: Approximately 5.8 million ounces. ​panamericansilver.com

These figures underscore Pan American Silver Corp.'s strong financial health, efficient operational management, and substantial asset base, positioning the company favorably within the precious metals industry.

ED Note:

Bought some shares today!

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Friday, February 28, 2025

Energy stocks - Why we bought Cenovus (CVE) on the TSX

 


Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is a prominent Canadian integrated oil and natural gas company headquartered in Calgary, Alberta. The company is engaged in various operations, including oil sands projects, conventional oil and gas production, refining, and transportation.

Production Facilities and Resources

  • Oil Sands Operations: Cenovus operates several oil sands projects in Alberta, utilizing steam-assisted gravity drainage (SAGD) technology. Key projects include Foster Creek, Christina Lake, and Sunrise. In May 2017, Cenovus acquired full ownership of the Foster Creek and Christina Lake projects. In June 2022, the company assumed full ownership of the Sunrise oil sands asset by acquiring the remaining 50% interest from BP Canada.

    en.wikipedia.org

  • Conventional Oil and Gas: Cenovus's conventional assets are primarily located in Western Canada, including the Deep Basin—a liquids-rich natural gas region spanning northwestern Alberta and northeastern British Columbia. In November 2020, Cenovus sold its Marten Hills assets to Headwater Exploration Inc.

    en.wikipedia.org

  • Refining and Upgrading: Following the acquisition of Husky Energy in January 2021, Cenovus became one of Canada's largest refiners. The company owns refineries in Lima, Ohio; Superior, Wisconsin; and Lloydminster, Alberta. Additionally, Cenovus holds a 50% ownership in refineries located in Wood River, Illinois, and Borger, Texas, through a joint venture with Phillips 66. In August 2022, Cenovus agreed to acquire BP's 50% interest in the BP-Husky Toledo Refinery in Ohio, assuming full ownership.

    en.wikipedia.org

Partners and Customers

Cenovus collaborates with various partners across its operations. The company has a joint venture with Phillips 66 for the Wood River and Borger refineries. Additionally, Cenovus supplies products to a diverse customer base, including wholesale and retail fuel markets, as well as petrochemical industries.

Financial Performance

In 2024, Cenovus reported cash from operating activities of $9.2 billion, an increase from $7.4 billion in 2023. Adjusted funds flow for 2024 was $8.2 billion, with free funds flow of $3.1 billion. Total capital investment for the year amounted to $5.0 billion, primarily directed towards sustaining production and advancing growth projects.

cenovus.com

In the fourth quarter of 2024, the company generated over $2.0 billion in cash from operating activities, $1.6 billion in adjusted funds flow, and $123 million in free funds flow. Net earnings for the quarter were $146 million. Total upstream production averaged 816,000 barrels of oil equivalent per day (BOE/d), with oil sands production reaching a record 628,500 BOE/d. Downstream operations reported a crude throughput of 666,700 barrels per day, representing a utilization rate of 93%.

cenovus.com

Cash Reserves and Capital Allocation

As of December 31, 2024, Cenovus maintained a strong financial position, enabling continued investment in sustaining and growth capital. The company's 2025 capital budget is set between $4.6 billion and $5.0 billion, with approximately $3.2 billion allocated for sustaining capital and up to $1.8 billion for growth projects. This disciplined capital plan supports shareholder returns and maintains net debt near $4.0 billion.

cenovus.com

Market Performance

As of February 28, 2025, Cenovus Energy Inc. (NYSE: CVE) shares are trading at $13.715 USD, reflecting the company's stable market presence.

Cenovus Energy Inc (CVE)

Key Metrics
Open13.67
Day Range13.50 - 13.80
52 Week Range13.73 - 21.90
Volume960.9K

Recent Developments

In the fourth quarter of 2024, Cenovus experienced a decline in net income to C$146 million from C$743 million in the same period the previous year. This decrease was attributed to lower commodity prices and weaker refining margins, despite an increase in production. Total upstream production rose slightly to 816,000 BOE/d, and refining throughput increased to 666,700 barrels per day.

reuters.com

Overall, Cenovus Energy Inc. continues to demonstrate resilience through its integrated operations, strategic investments, and commitment to financial discipline, positioning itself for sustained growth in the evolving energy sector.

Cenovus Energy (CVE) benefits from the currency exchange dynamics between the Canadian dollar (CAD) and U.S. dollar (USD). Since extraction and operational costs are primarily incurred in CAD, while revenues from oil and gas sales are largely earned in USD, a weaker CAD relative to USD enhances Cenovus's profitability in several ways:

1. Currency Advantage on Revenues

  • Crude oil and natural gas prices are typically denominated in U.S. dollars on global markets.
  • A weaker Canadian dollar means that when Cenovus converts its USD revenues into CAD, it receives more Canadian dollars per USD earned, boosting its overall revenue in local currency terms.

2. Lower Relative Operating Costs

  • Since Cenovus incurs many of its expenses (labor, equipment, operational costs) in CAD, a weaker CAD means these costs remain relatively lower compared to USD-denominated revenue.
  • This helps maintain higher profit margins, particularly during periods of weaker oil prices.

3. Enhanced Free Cash Flow and Dividend Potential

  • Stronger cash flows due to currency tailwinds allow Cenovus to:
    • Reduce debt more efficiently.
    • Increase capital expenditures for growth projects.
    • Boost dividends or share buybacks to return value to shareholders.

4. Competitive Export Advantage

  • Canadian oil sands producers like Cenovus export a large portion of their crude to U.S. refineries.
  • When the CAD is weaker, it makes Canadian crude cheaper for U.S. buyers in USD terms, potentially increasing demand for Cenovus’s exports.

5. Hedging Strategy

  • Many energy companies hedge currency risks, but even with hedging, a persistently weak CAD benefits Cenovus’s bottom line.

Current Market Conditions

  • The Canadian dollar has been relatively weak against the U.S. dollar in early 2025 due to:
    • Interest rate differentials (U.S. Fed maintaining higher rates).
    • Global oil price fluctuations.
    • Slower Canadian economic growth.
  • If the CAD remains weak, Cenovus's profitability should be stronger than it would be in a strong CAD environment.

Conclusion

The current CAD-to-USD exchange rate environment is a positive factor for Cenovus. As long as oil and gas prices remain stable or increase, Cenovus should see continued financial strength, stronger free cash flow, and potentially better stock performance compared to companies operating in markets where both costs and revenues are USD-based.

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Tuesday, February 11, 2025

Agnico Eagle Gold is a top 3 Gold miner on the world stage now, and, it's still growing!

 


Agnico Eagle Mines Limited: Comprehensive Investment Report

Company Overview:

Agnico Eagle Mines Limited is a Canadian-based gold producer with operations in Canada, Finland, Australia, and Mexico, and exploration activities extending to the United States. The company has a longstanding policy of no-forward gold sales, providing full exposure to gold price fluctuations. Notably, Agnico Eagle has maintained a cash dividend every year since 1983.

en.wikipedia.org

Current Operations:


  1. LaRonde Complex (Quebec, Canada): This complex includes the LaRonde mine, known for its deep operations, and the LaRonde Zone 5 mine. In the third quarter of 2024, the LaRonde mine produced 47,313 ounces of gold, while the LaRonde Zone 5 mine contributed 18,275 ounces.

    s21.q4cdn.com

  2. Goldex Mine (Quebec, Canada): An underground operation near Val-d'Or, Goldex produced 28,861 ounces of gold in Q3 2024.

    s21.q4cdn.com

  3. Detour Lake Mine (Ontario, Canada): As one of Canada's largest gold operations, Detour Lake produced 188,573 ounces of gold in Q3 2024.

    s21.q4cdn.com

  4. Macassa Mine (Ontario, Canada): Known for its high-grade reserves, Macassa produced 72,274 ounces of gold in Q3 2024.

    s21.q4cdn.com

  5. Meliadine Mine (Nunavut, Canada): This mine in the Kivalliq region produced 97,866 ounces of gold in Q3 2024.

    s21.q4cdn.com

  6. Meadowbank Complex (Nunavut, Canada): Including the Amaruq satellite deposit, the complex produced 85,305 ounces of gold in Q3 2024.

    s21.q4cdn.com

  7. Kittilä Mine (Lapland, Finland): Europe's largest gold mine, Kittilä produced 57,538 ounces of gold in Q3 2024.

    s21.q4cdn.com

  8. Pinos Altos Mine (Chihuahua, Mexico): This operation produced 21,371 ounces of gold in Q3 2024.

    s21.q4cdn.com

  9. La India Mine (Sonora, Mexico): In residual leaching phase, La India produced 4,529 ounces of gold in Q3 2024.

    s21.q4cdn.com

Financial Performance:

In the third quarter of 2024, Agnico Eagle reported:

  • Revenues from Mining Operations: $2.16 billion, a 31% increase from the same period in 2023.

  • Net Income: $572.6 million, or $1.14 per share, representing a 165% increase year-over-year.

  • EBITDA: $1.26 billion, up from $722 million in Q3 2023.

  • Gold Production: 863,445 ounces, compared to 850,429 ounces in Q3 2023.

  • Cash Provided by Operating Activities: $1.08 billion, more than double the $502.1 million reported in Q3 2023.

s21.q4cdn.com

Cash Position:

As of September 30, 2024, the company held cash and cash equivalents totaling $658.6 million. The decrease from the previous quarter was primarily due to increased payments to suppliers and the timing of capital projects. Agnico Eagle maintains an unsecured revolving bank credit facility with available liquidity of approximately $1.2 billion.

s21.q4cdn.com

Gold Reserves:


Agnico Eagle reported record mineral reserves, with a 10.5% increase, anchored by its Canadian operations. The company aims to maintain gold reserves at approximately 10 times its annual production rate.

agnicoeagle.com
agnicoeagle.com

Future Prospects:

The company continues to optimize its existing mines and advance studies on its Abitibi platform, with updates expected in the first half of 2024. Agnico Eagle's stable production profile and industry-leading costs position it well for long-term value creation.

agnicoeagle.com

Political Considerations:

Operating in multiple jurisdictions, Agnico Eagle is subject to various political and regulatory environments. While the company has not reported significant political risks affecting its operations recently, it remains vigilant in monitoring and managing potential geopolitical and regulatory challenges.

Stock Performance:

Agnico Eagle Mines Limited is listed on both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) under the ticker symbol "AEM." As of February 11, 2025, Agnico Eagle Mines Ltd. (AEM) is trading at $99.01 USD, with an intraday high of $100.58 USD and a low of $98.51 USD.

Key Metrics
Open99.50
Day Range98.51 - 100.58
52 Week Range44.37 - 101.45
Volume807.5K

Over the past five years, AEM's stock has experienced significant growth. In 2020, the stock closed at approximately $63.02 USD, and by the end of 2024, it had risen to around $78.21 USD. The upward trend continued into early 2025, with the stock reaching an all-time high closing price of $98.96 USD on February 6, 2025.

macrotrends.net

This performance reflects Agnico Eagle's strategic acquisitions and strong operational results, contributing to its position as the third-largest gold producer globally, and is still expanding. In it's latest acquisition (last week) ...

Agnico Eagle Mines and O3 Mining Inc. announced that Agnico Eagle has taken-up and acquired 110,424,431 common shares of O3 Mining, representing approximately 94.1% of the outstanding common shares of O3 Mining on a basic basis, pursuant to its board-supported take-over bid for all of the outstanding Common Shares for $1.67 in cash per Common Share
investors.com

Conclusion:

Agnico Eagle Mines Limited showcases a strong operational and financial profile, underpinned by strategic assets in stable jurisdictions. Its commitment to maintaining substantial gold reserves, coupled with ongoing optimization efforts, positions the company favorably for future growth.

The company's disciplined financial management, consistent dividend payments, and growing production capacity make it an attractive option for long-term investors. With record-high gold reserves, strong free cash flow, and a favorable gold price environment, Agnico Eagle remains well-positioned to sustain its leadership in the gold mining industry.

In 2023, Agnico Eagle Mines Limited became the third-largest gold producer globally, following its acquisition of Yamana Gold's Canadian assets, including full ownership of the Canadian Malartic mine, the largest open-pit gold mine in Canada. This acquisition, along with the 2022 merger with Kirkland Lake Gold, has significantly boosted Agnico Eagle’s production to approximately 3.44 million ounces of gold annually.

Over the past five years, AEM's stock has experienced significant growth. In 2020, the stock closed at approximately $63.02 USD, and by the end of 2024, it had risen to around $78.21 USD. The upward trend continued into early 2025, with the stock reaching an all-time high closing price of $98.96 USD on February 6, 2025.

macrotrends.net

This performance reflects Agnico Eagle's strategic acquisitions and strong operational results, contributing to its position as the third-largest gold producer globally and growing!

Ed Note:

We own shares and are long AEM stock!

How would an export tax levied by Canada on all it's natural resources entering the USA affect American business and society

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