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Showing posts with label Canada. Show all posts
Showing posts with label Canada. Show all posts

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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Sunday, February 2, 2025

Trump Tariffs - Canada - A lesson in how to curb growth, raise prices and strain relations and partnerships with your greatest Ally!

 


Overview

The United States imposes:

  • 25% tariffs on most Canadian goods.
  • 10% tariff on Canadian oil (instead of complete exemption).
  • 25% tariffs on all Mexican imports.

In response, Canada levies:

  • 25% tariffs on $140 billion of U.S. goods.
  • A possible extra tax on Canadian oil and gas exports to the United States.

Mexico also retaliates with significant tariffs on U.S. exports.

By applying broad, unilateral tariffs on Canada, the U.S. is in clear violation of the Canada-U.S. Free Trade Agreement (and subsequent NAFTA/USMCA protocols). These treaties were designed to eliminate tariffs and encourage frictionless trade in North America. Imposing tariffs (and extra taxes in retaliation) specifically contradicts the very basis of these agreements—especially when such measures are not part of a sanctioned dispute-resolution process.

As with most tariff wars, there is no clear winner. All three nations experience higher costs, supply chain complications, and inflationary pressures. Below is an expanded breakdown:

1. Effects on Trade Flows

  1. U.S. Tariffs on Canadian Goods (Non-Oil)

    • A 25% tariff on non-oil Canadian goods raises prices for U.S. importers, reducing competitiveness of Canadian exports.
    • Canada may lose market share or see profit margins squeezed in vital sectors like lumber, auto parts, and agriculture.

  2. U.S. Tariffs on Canadian Oil (10%)

    • Although this is lower than 25%, it directly contravenes the free-trade principles established under CUSTA/NAFTA/USMCA.
    • Certain Gulf Coast and Midwest refineries rely heavily on Canadian heavy crude, which cannot be easily replaced by lighter U.S. shale oil. They now face higher input costs and potential operational disruptions.

  3. Canada’s Retaliation and Potential Extra Tax on Oil/Gas Exports

    • Canada’s 25% tariffs on $140 billion of U.S. goods target high-profile exports (machinery, agriculture, consumer goods).
    • A new export tax on Canadian oil/gas to the U.S. would further compound energy costs for American refiners, especially along the Texas coast.

  4. U.S. Tariffs on Mexican Goods (25%)

    • Mexico is a top source of vehicles, electronics, and produce for the U.S.
    • These tariffs raise import costs significantly and violate the North American free-trade framework, undermining integrated supply chains.

  5. Mexican Retaliation

    • Mexico would impose tariffs on key U.S. exports, reducing competitiveness for American farm products, machinery, and consumer goods.

  6. Tri-National Supply Chain Disruptions

    • Many sectors (auto, aerospace, electronics) rely on cross-border component flows. Multiple tariffs at once create compounding costs, forcing supply chain adjustments and eroding efficiency.

2. Winners and Losers

  1. Winners

    • Protected Domestic Producers:
      • Some U.S. industries that directly compete with Canadian and Mexican imports (e.g., certain agricultural or manufacturing segments) see a short-lived boost.
      • Canadian and Mexican producers that compete with U.S. imports may see temporary gains in their home markets.
    • Government Revenues:
      • Tariffs and export taxes generate revenue, though this is often overshadowed by broader economic harm.

  2. Losers

    • Refiners Relying on Canadian Heavy Crude:
      • Gulf Coast and Midwest facilities optimized for heavier Canadian crude now incur tariffs on both sides (the U.S. import tariff plus a potential Canadian export tax).
      • These higher costs can lead to reduced refinery margins, potentially higher fuel prices, or even operational cutbacks.
    • Export-Focused Industries:
      • In the U.S., agriculture, machinery, and consumer goods see lost sales in Canada and Mexico due to retaliation.
      • In Canada and Mexico, producers of goods facing a 25% U.S. tariff lose market share in their single largest export market.
    • Consumers:
      • All three countries experience price hikes for food, consumer goods, and fuel.
    • Free Trade Agreements:
      • By imposing unilateral tariffs, the U.S. effectively breaks its commitments under the Canada-U.S. Free Trade Agreement/NAFTA/USMCA, risking legal challenges and a collapse of trust in existing trade frameworks.
      • Here are the States that will lose a ton of revenue from trade with Canada et all! Note how many states will lose Canadian business!



3. Impact on Inflation

  1. Higher Energy Costs

    • A 10% tariff on Canadian oil plus a possible Canadian export tax to the U.S. means refiners pay more and may pass these costs onto consumers in the form of higher gasoline and diesel prices.
    • This can have a knock-on effect on transportation and logistics, amplifying inflation.

  2. Broader Consumer Price Increases

    • Tariffs on a wide range of imports from Canada and Mexico raise costs for raw materials, components, and finished goods.
    • The more these goods factor into daily consumer products, the more inflationary pressure builds.

  3. Limited Substitution Options

    • While some imports could be sourced from elsewhere, specialized sectors—especially heavy crude refining, automotive, aerospace—cannot easily pivot without major capital investments and time.

4. Impact on Jobs

  1. Energy Sector Employment

    • Refinery Jobs in the U.S. may be at risk if higher input costs dent profitability.
    • Canadian Oil Sector may lose U.S. market share if demand shifts, affecting jobs in exploration, production, and related services.

  2. Manufacturing and Agriculture

    • In the U.S.: Export-oriented farms and manufacturers lose Canadian and Mexican market share due to retaliation. Possible layoffs result.
    • In Canada & Mexico: Industries reliant on the U.S. market also face reduced orders because of higher tariffs, with similar job losses.

  3. Short-Term Gains vs. Long-Term Losses

    • Some domestic producers in each country see initial gains as competition from imports declines.
    • Historically, trade wars have shown a net negative effect on employment once retaliation and ripple effects are considered.

5. Breach of the Canada-U.S. Free Trade Agreement (and USMCA)

  1. Direct Violation of Tariff Elimination Provisions

    • The Canada-U.S. Free Trade Agreement (CUSTA) eliminated tariffs between the two countries for most goods. NAFTA/USMCA expanded that framework to include Mexico and modernized many rules.
    • Imposing new tariffs without following the agreement’s dispute resolution mechanisms directly contravenes the deal’s core commitments.
    • By taxing Canadian oil—historically a key export exempt under free-trade provisions—the U.S. breaks a fundamental principle of “no tariffs on cross-border energy flows.”

  2. Legal Challenges and Uncertainty

    • Canada (and Mexico) can file formal disputes under USMCA’s dispute resolution system or even at the WTO, undermining confidence in North American trade.
    • Ongoing legal battles exacerbate unpredictability for businesses, likely delaying investments and expansions.

  3. Undermining North American Economic Integration

    • The success of the Canada-U.S. Free Trade Agreement laid the groundwork for NAFTA and its successor, the USMCA. These treaties significantly contributed to cross-border supply chains and energy trade.
    • Violating these pacts threatens the stability and cooperation that have been built over decades, risking a cascade of protectionist measures and retaliations.

6. Overall Economic and Political Consequences

  1. Strains on Established Trade Relationships

    • Canada, the U.S., and Mexico have deeply entwined economies. Comprehensive tariffs shatter that stability, introducing higher costs and mutual distrust.
    • Re-negotiations or legal disputes create policy uncertainty, discouraging investment and long-term planning.

  2. Increased Consumer and Producer Prices

    • Food, energy, cars, and consumer goods face price pressures, fueling inflation in all three countries.
    • Producers cope with higher costs for imported components and face restricted access to export markets.

  3. Geopolitical Tensions

    • Historically close ties between Canada and the U.S. (and, to a slightly lesser extent, Mexico) face new frictions. Cooperation on other issues—like security or environmental policy—may be hampered by the trade conflict.

  4. No Clear Winners

    • While a handful of protected industries see temporary relief from foreign competition, the net effect is likely negative for total employment, consumer welfare, and overall economic growth in each nation.

Conclusion

By imposing 25% tariffs on Canadian and Mexican goods, 10% on Canadian oil, and considering a Canadian export tax on oil/gas bound for the U.S., the United States not only instigates a damaging tariff war—it also breaches the Canada-U.S. Free Trade Agreement (and USMCA/NAFTA commitments). Canada and Mexico respond with retaliatory tariffs, deepening the trade rift:

  • Higher energy costs loom for U.S. refineries reliant on Canadian heavy crude.
  • Lost export markets for U.S. farmers and manufacturers as Canada and Mexico retaliate.
  • Heightened inflation in all three nations, with consumers bearing the brunt.
  • Eroded trust in previously established free-trade frameworks, leading to legal challenges and further uncertainty.

Ultimately, this scenario underscores that no one truly “wins” in a tariff war. 

The cross-border economic integration painstakingly developed over 50 years, through the Canada-U.S. Free Trade Agreement and subsequent accords is jeopardized, curbing growth, raising prices, and straining once-stable partnerships.

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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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