DOCSLIB.ORG

Industry Note

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Industry Note Industry Note Equity Research April 23, 2020 Gold and Precious Minerals - Large-Cap Golds Q1/20 Preview and Precious Metals Price Deck Change - Corrected Greg Barnes 416 983 9588 Staying bullish gold on unprecedented Central Bank accommodation [email protected] Q1/20 should provide the first taste of FCF to come Steven Green, CFA ■ 416 307 6304 Gold and silver price decks increased. We last raised our precious metals price [email protected] deck on April 1; at that time, we said that we thought our revised deck might be conservative. That has turned out to be the case. We are now forecasting an Arun Lamba, CFA average gold price of $1,746/oz in 2020, $1,850/oz in 2021, and $1,900/oz in 416 983 6043 2022, and we have increased our long-term price to $1,500/oz (from $1,450/oz). [email protected] We have also increased our silver price deck (Exhibit 2). Craig Hutchison, P. Eng ■ 416 982 3474 The U.S. Federal Reserve (The Fed) launched an unlimited Quantitative [email protected] Easing (QE) program at the end of March and the central bank's balance sheet has already expanded to >$6.3 trillion, from $4.2 trillion at the start of Derick Ma, CFA, CPA, CA There is a well-known relationship between QE and lower real rates, 416 308 3404 the year. [email protected] such that it ultimately suppresses real rates by lifting inflation expectations at a faster pace than nominal rates. This creates a very favourable environment for Mengdi Li, CPA, CA (Associate) gold; we believe that the market continues to under-price unlimited QE's impact on 416 308 3741 gold. The Fed and other central banks are likely to keep their unprecedented easy [email protected] policies in place for far longer than anticipated, following a decade of below-target Joel Brown, P.Eng. (Associate) inflation and a renewed interest in asymmetric inflation targeting. We continue to 416 307 8932 believe that the gold price is at the start of a multi-year rally. [email protected] ■ Laura Baker, (Associate) Q1/20 should provide the first taste of the FCF to come (Exhibit 13). The 416-308-2360 Q1/20 gold price averaged $1,582/oz, the highest quarterly average price since [email protected] Q1/13 and a 6.7% increase over Q4/19. At our higher gold price deck, we expect that the producers will generate significant FCF; in fact, we are projecting Senior Producer FCF yields of 6-12% based on our 2021 estimates (Exhibit 12). Evidence that companies are maintaining cost discipline will be a key focus for investors, and we expect that the cost discipline mantra will be repeated by management teams during Q1/20 conference calls. ■ COVID-19 mine closures will have an impact mostly on Q2/20. We estimate that upwards of 80 gold mines were or are being affected by COVID-19 restrictions. Most of the impact will be felt in Q2/20 results. Mine shutdowns are beginning to reverse, with more than 20 mines in the process of reopening. ■ Market Overweight gold sector. Our sector Overweight call is unchanged, and we note that since we upgraded our sector weighting on April 1, the S&P/TSX Global Gold Index has increased by ~29%. Heading into quarterly reporting, we are maintaining our ACTION LIST BUY recommendations on Barrick Gold and B2Gold. Our Top Picks include Barrick, Newmont, Kirkland Lake, B2Gold, and Equinox. Please see the final pages of this document for important disclosure information. Page 1 of 23 April 23, 2020 Target Price Changes — Producers Still Favoured vs. Streamers We have increased our target multiples to reflect our continued positive outlook on gold and our preference for the gold producers in this environment relative to the royalty/streaming companies, given that the producers have more leverage to higher gold prices. For the Senior Gold producers, we are generally using a 9.5x‒10.5x EV/2021 EBITDA target multiple (previously 9.5x), blended with a 1.85x‒2.2x NAV-5% target multiple (previously 1.85x). We have used target multiples at the top-end of the range for Barrick to reflect the company’s expected strong FCF generation and because its operations have been less affected by COVID-19 restrictions or shutdowns relative to its larger peers — Newmont and Agnico Eagle. As we have done in the past, we use lower target multiples for Kinross to reflect its perceived higher political risk profile. Our target multiples for the senior producers are in line with the multiples afforded the larger producers in 2008/2009 — the time frame that we consider most similar to the current environment. Exhibit 1. Barrick and Newmont EV/NTM EBITDA 2008‒2020 15.00x 14.00x 13.00x 12.00x 11.00x 10.00x 9.00x 8.00x 7.00x 6.00x 5.00x 4.00x 3.00x Newmont Corporation (NYSE:NEM) - TEV/Forward EBITDA Barrick Gold Corporation (TSX:ABX) - TEV/Forward EBITDA Source: Capital IQ We have maintained our target multiples for the royalty/streaming companies and left our recommendations unchanged. We expect the gold price to move higher in the current macroeconomic environment and in our view that favours the senior gold producers, given their higher sensitivity to gold. We do expect that the royalty/streaming companies will benefit from the current environment via the acquisition of by-product precious metal streams from base metal producers who may be experiencing balance-sheet challenges — that being said, we do not see as much balance sheet stress among the base metal miners currently as we did in 2015/2016. Albeit that could change if base metal prices take another leg down if demand declines further than currently forecast. M&A on hold for now; gold producers/streamers positioned to pounce when the time is right. For both the producers and the royalty/streaming companies, stronger precious metal prices and increased investor interest are positioning the larger companies to take advantage of potential opportunistic M&A opportunities — particularly for assets with a gold focus that are in the hands of base metal producers. However, with travel restrictions in place globally, and the expectation that this may not change for some time, the ability to complete asset due diligence is Page 2 of 23 April 23, 2020 limited. In addition, it is not clear to us that investor appetite is high for M&A, given the highly uncertain outlook for global growth. As such, we expect that significant or transformational M&A transactions may have to wait until the world returns to some semblance of normalcy. Given our outlook for the gold price and the free cash flow we expect from the gold producers and royalty/streaming companies (combined with their robust balance sheets), we expect that the gold sector should exit the COVID- 19 crisis in a position of strength. Exhibit 2. TD Securities Precious Metals Forecasts (US$/oz) 2018A 2019A 2020E 2021E 2022E 2023E LT Gold $1,269 $1,393 $1,746 ↑ $1,850 ↑ $1,900 ↑ $1,700 ↑ $1,500 ↑ Previous $1,650 $1,750 $1,550 $1,450 $1,450 Silver $15.71 $16.21 $16.85 $19.50 ↑ $22.00 ↑ $21.00 ↑ $20.00 Previous $16.85 $18.00 $20.00 $20.00 $20.00 Source: TD Securities Inc. estimates Exhibit 3. U.S. Federal Reserve Balance Sheet and the Gold Price U.S. Federal Reserve Total Assets US$ billions (LHS); Gold Price US$/oz (RHS) US Federal Reserve - Total Assets $Billions 7000 2200 Gold 6368 2000 6000 1800 1719 5000 1600 4000 1400 3000 1200 1000 2000 800 1000 600 0 400 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 W23 15 APR 20 Source: US Federal Reserve, Bloomberg, TD Securities Inc. Page 3 of 23 US Real Rates and the Gold Price (inverted) 1.75 $1,000 $1,100 1.25 $1,200 $1,300 Source: Exhibit Inc TD Securities Bloomberg, Source: Exhibit Gold price (inverted) 0.75 $1,400 $1,500 TD Securities Inc. Inc. estimates Securities TD 4. 5. 0.25 $1,600 Gold and U Gold Average MarginGross Ounce per Average Gold (US$/oz, inverted) (US$/oz, Gold US 10Y real interest rate interest real 10Y US $1,700 10Y real rate (0.25) $1,800 $1,900 . S (0.75) $2,000 . 10 Jul-16 Jul-17 Jul-18 Jul-19 - Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-16 Nov-16 Sep-17 Nov-17 Sep-18 Nov-18 Sep-19 Nov-19 May-16 May-17 May-18 May-19 year RealRate Real rate Gold . $1,000 $1,800 $1,582 $1,600 $1,483 $1,474 $800 $1,335 $1,330 $1,400 $1,309 $1,306 $1,305 $1,282 $1,279 $1,277 $1,262 $1,262 $794 $1,229 $1,219 $1,219 $1,216 $762 $1,212 $758 $1,201 $1,194 $1,182 $600 $1,125 $1,200 $1,104 $667 $653 $636 $632 $629 $627 $623 $583 $571 $567 $567 $1,000 $554 $516 $547 $546 $541 $539 Gold priceGold US$/oz $515 $508 $400 $500 $800 Gross margin per ounce per US$/oz margin ounce Gross $200 $600 Q3 Q3 14 Q1 15 Q2 15 Q1 16 Q4 16 Q1 17 Q3 17 Q4 17 Q3 18 Q2 19 Q3 19 Q4 Q4 14 Q3 15 Q4 15 Q2 16 Q3 16 Q2 17 Q1 18 Q2 18 Q4 18 Q1 19 Q4 19 Q1 Q1 20E Gross Margin (US$/oz) Gold US$/oz April 23,2020 April 2020 23, Page 4of23 April 23, 2020 Exhibit 6.
Load more

Recommended publications
  • ZGD) (The “ETF”) for the Six-Month Period Ended June 30, 2017 (The “Period”) Manager: BMO Asset Management Inc
    SEMI-ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE BMO S&P/TSX Equal Weight Global Gold Index ETF (ZGD) (the “ETF”) For the six-month period ended June 30, 2017 (the “Period”) Manager: BMO Asset Management Inc. (the “Manager” and “portfolio manager”) Management Discussion Significant individual contributors to performance were of Fund Performance Kirkland Lake Gold Ltd., IAMGOLD Corporation, Kinross Gold Corporation. and Osisko Gold Royalties Ltd. Results of Operations Individual detractors to performance included Asanko The ETF outperformed the broad-based S&P/TSX Capped Gold Inc., SEMAFO Inc., Klondex Mines Ltd. and Eldorado Composite Index by 0.23%. However, the more appropriate Gold Corporation. comparison is to the S&P/TSX Equal Weight Global Gold Index (the “Index”), due to the concentration of the Recent Developments portfolio in global gold mining companies. The ETF The portfolio manager believes oil prices should continue returned 0.97% versus the Index return of 1.22%. The to stabilize from oil production cuts out of OPEC. While U.S. change in total net asset value during the Period from oil production increases, it poses a risk to oil prices. The approximately $30 million to approximately $27 million rebound in economic growth should increase demand for had no impact to the performance of the ETF. other commodities and could raise their prices. Gold could also fair well with increased geopolitical uncertainty. The difference in the performance of the ETF relative to the Index during the Period (-0.25%) resulted from the payment Subsequent Events of management fees (-0.31%), and the impact of sampling Underlying Index Change and certain other factors (0.06%), which may have included Effective on or about September 15, 2017, the underlying timing differences versus the Index, and market volatility.
    [Show full text]
  • BMO Equal Weight Global Gold Index ETF (ZGD) Summary of Investment Portfolio • As at September 30, 2019
    QUARTERLY PORTFOLIO DISCLOSURE BMO Equal Weight Global Gold Index ETF (ZGD) Summary of Investment Portfolio • As at September 30, 2019 % of Net Asset % of Net Asset Portfolio Allocation Value Top 25 Holdings Value Canada ........................................................................................................ 60.1 Centerra Gold Inc. .............................................................. 3.6 United States .............................................................................................. 16.5 Gold Fields Limited, ADR ...................................................... 3.5 South Africa .................................................................................................. 9.7 OceanaGold Corporation ....................................................... 3.5 Australia ........................................................................................................ 3.5 Alacer Gold Corporation ....................................................... 3.5 Nicaragua ...................................................................................................... 3.4 Coeur Mining, Inc. ............................................................. 3.4 Cote D’Ivoire ................................................................................................. 3.3 Kirkland Lake Gold Ltd. ........................................................ 3.4 Brazil ............................................................................................................. 3.2 IAMGOLD Corporation
    [Show full text]
  • Preparing for Growth: Capitalizing on a Period of Progress and Stability
    Preparing for growth: Capitalizing on a period of progress and stability www.pwc.com/ca/canadianmine A year of stability Contents 2 A year of stability 3 Highlights and analysis 7 Agnico Eagle: Perfecting a successful 60 year-old strategy 9 Osisko Gold Royalties: Disrupting the cycle An interview with John Matheson, Partner, PwC Canada 11 Savvy investments in stable times Call it breathing room. Over the last year, into Eastern and Central Europe with its Canada’s major mining companies have Belt and Road Initiative (formerly One Belt entered a period of relative stability after and One Road) is increasing demand for weathering a frenzied period of boom, industrial products. bust and recovery. Globally, the geopolitical situation will About this report The sector has been paying down debt, likely remain volatile through 2018 and Preparing for growth is one of improving balance sheets and judiciously beyond. While bullion largely shrugged four publications in our annual investing in capital projects, on trend with off 2017’s world events, international Canadian mine series looking at the wider global mining industry in 2017. uncertainties could yet become an the realities and priorities of public Maintaining flexibility and increasing upward force on gold prices. The success mining companies headquartered efficiency are key goals for many executive of stock markets around the globe last in Canada. It offers a summary of financial analysis of the top 25 teams as they try to position themselves to year dampened general investor interest listings by market capitalization on capitalize on the next stages of the cycle. in gold equities, with the precious metal the TSX and complements our Junior Some companies have sought to enhance traditionally serving as a hedge against mine 2017 report, which analyzes the operations through acquisitions, but on market downturns, said David Smith, top 100 listings on the TSX Venture the whole, 2017 saw few eye-popping Senior Vice President of Finance and Chief Exchange (TSX-V).
    [Show full text]
  • Notice of Annual Meeting of Shareholders of Kirkland Lake Gold Ltd
    PMS: 662 C PMS: Cool Gray 7 C PMS: 7407 C PMS: 135 C C:100 M:87 Y:0 K:20 C:20 M:14 Y:12 K:40 C:6 M:36 Y:79 K:12 C:0 M:21 Y:76 K:0 R:24 G:54 B:131 R:135 G:138 B:143 R:210 G:152 B:71 R:255 G:203 B:88 HEX: #163683 HEX: #878a8f HEX: #d29847 HEX: #ffcb58 2021 Notice of Annual Meeting of Shareholders of Kirkland Lake Gold Ltd. TO BE HELD ON MAY 6, 2021 MANAGEMENT INFORMATION CIRCULAR DATED APRIL 9, 2021 MANAGEMENT INFORMATION CIRCULAR | DATED APRIL 9, 2021 KIRKLAND LAKE GOLD LTD. NOTICE OF ANNUAL MEETING OF SHAREHOLDERS NOTICE IS HEREBY GIVEN that an annual meeting (the “Meeting”) of the shareholders (the “Shareholders”) of Kirkland Lake Gold Ltd. (the “Company”) will be held in a virtual-only format, which will be conducted via live audio webcast available online at https://virtual-meetings.tsxtrust.com/1086 on Thursday, May 6, 2021 at 4:30 p.m. (Toronto time) for the following purposes: 1. to receive and consider the audited consolidated financial statements of the Company as at and for the years ended December 31, 2020 and 2019, together with the report of the auditors thereon; 2. to appoint KPMG LLP, Chartered Professional Accountants as auditor of the Company and authorize the board of directors to fix their remuneration; 3. to elect the directors of the Company for the ensuing year; 4. to consider and, if deemed appropriate, pass, with or without variation, a non-binding advisory resolution on the Company’s approach to executive compensation; and 5.
    [Show full text]
  • Our Members Our Members
    SUBSCRIBE TO MAC NEWS Home > Members & Partners > Our Members Our Members Members and associate members of the Mining Association of Canada play a vital role in ensuring the continued strength and sustainability of Canada’s mining industry. Our members account for most of Canada’s production of base and precious metals, uranium, diamonds, metallurgical coal and mined oil sands, and are actively engaged in mineral exploration, mining, smelting, rening and semi-fabrication. Full Members AGNICO EAGLE MINES LIMITED ALEXCO RESOURCE CORP. ARCELORMITTAL MINES CANADA B2GOLD CORP. BAFFINLAND BARRICK BHP CAMECO CORPORATION CANADIAN NATURAL RESOURCES LIMITED COPPER MOUNTAIN MINING CORPORATION DE BEERS CANADA INC. ELDORADO GOLD EQUINOX GOLD CORPORATION EXCELLON RESOURCES INC. FIRST QUANTUM MINERALS LTD. FORT HILLS LIMITED PARTNERSHIP GLENCORE CANADA CORPORATION HD MINING INTERNATIONAL LTD. HECLA QUÉBEC INC. HUDBAY MINERALS INC. IAMGOLD CORPORATION IMPALA CANADA LIMITED IRON ORE COMPANY OF CANADA KINROSS GOLD CORPORATION KIRKLAND LAKE GOLD LUNDIN FOUNDATION LUNDIN MINING CORPORATION MCEWEN MINING NEW GOLD INC. NEWMONT NEXGEN ENERGY LTD. NORONT RESOURCES LTD. NORZINC LTD. (FORMERLY CANADIAN ZINC CORPORATION) NYRSTAR CANADA (HOLDINGS) LTD. PAN AMERICAN SILVER CORP. RIO TINTO CANADA RIVERSDALE RESOURCES LIMITED ROYAL CANADIAN MINT SHERRITT INTERNATIONAL STAR DIAMOND CORPORATION SUNCOR ENERGY INC. SYNCRUDE CANADA LTD. TECK RESOURCES LIMITED TREVALI VALE WESTERN COPPER AND GOLD YAMANA GOLD INC. Associates AUSENCO LIMITED AVALON ADVANCED MATERIALS INC. BARR ENGINEERING AND ENVIRONMENTAL SCIENCE CANADA LTD. BBA INC. BENNETT JONES LLP BGC ENGINEERING INC. BUREAU VERITAS LABORATORIES CANADA NORTH ENVIRONMENTAL SERVICES LTD. CEMENTATION CANADA INC. CEMI - CENTRE FOR EXCELLENCE IN MINING INNOVATION CHAMBER OF MARINE COMMERCE CHARLES TENNANT & COMPANY (CANADA) LTD.
    [Show full text]
  • Steward Global Equity Income Fund
    STEWARD GLOBAL EQUITY INCOME FUND AS OF 6/30/21 INSTITUTIONAL CLASS CROSSMARKGLOBAL.COM Return Snapshot Performance Ticker SGISX Equity Style Box Ç 42.12 Morningstar Category US Fund World Large-Stock Value 39.13 Morningstar Rating Overall ÙÙÙÙÙ Funds in Category Overall 158 Inception Date 4/3/2008 27.24 Prospectus Net Exp Ratio 0.95% Prospectus dated 8/31/2020 Total AUM - All classes ($ mil) 356.9 15.36 15.40 13.99 13.22 13.13 Average Market Cap (mil) $ 42,061.94 12.07 11.11 10.68 10.51 9.18 8.73 7.70 # of Holdings 64 7.53 4.14 SEC 30-Day Yield (%) 1.53 3.89 QTR YTD 1 Year 3 Years 5 Years 10 Years Investment Objective The Fund seeks current income along with growth of capital. Steward Global Equity Income Fund S&P Global 1200 TR MSCI World High Dividend Yield NR Trailing Returns Portfolio Managers Qtr YTD 1 Year 3 Years 5 Years 10 Years John R. Wolf Brent Lium, CFA Steward Global Equity Income Fund 3.89% 13.99% 42.12% 12.07% 13.13% 10.68% Ryan Caylor, CFA S&P Global 1200 TR 7.53% 13.22% 39.13% 15.36% 15.40% 11.11% MSCI World High Dividend Yield NR 4.14% 10.51% 27.24% 9.18% 8.73% 7.70% Risk Statistics Time Period: 7/1/2011 to 6/30/2021 Calendar Year Returns Calculation Benchmark: S&P Global 1200 TR 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Return 10.68 Steward Global Equity Income Fund 8.53% 24.72% -7.63% 22.30% 14.02% -1.30% 9.00% 20.74% 9.54% 5.31% Std Dev 12.74 S&P Global 1200 TR 15.58% 28.22% -8.17% 23.84% 8.89% -0.86% 5.40% 25.84% 16.82%-5.08% Beta 0.88 MSCI World High Dividend Yield NR -0.03% 23.15% -7.56% 18.14% 9.29% -3.20% 2.48% 21.91% 12.24% 3.89% Alpha 0.83 Quantitative Factors Valuation Factors R2 89.27 Median Dividend Payout Ratio (%) 50.92 P/E Ratio (TTM) 17.77 Sharpe Ratio (arith) 0.79 EPS Growth - 3 Yr (%) 17.58 P/B Ratio (TTM) 2.44 Up Capture Ratio 88.88 P/FCF Ratio (TTM) 1.12 Down Capture Ratio 83.47 ROE % (TTM) 28.23 Investment Growth of $100 Top 10 Holdings Time Period: 7/1/2011 to 6/30/2021 ELI LILLY & CO 2.76% 300.0 INFOSYS LTD 2.72% TEXAS INSTRUMENTS INC 2.58% 250.0 MCDONALD'S CORP 2.40% TAIWAN SEMICON.
    [Show full text]
  • AI Powered International Equity ETF Schedule of Investments August 31, 2020 (Unaudited)
    AI Powered International Equity ETF Schedule of Investments August 31, 2020 (Unaudited) Shares Security Description Value COMMON STOCKS - 99.4% Argentina - 1.1% 360 Globant SA (a) $ 63,929 Australia - 3.3% 512 Atlassian Corporation plc - Class A (a) 98,182 700 Australia & New Zealand Banking Group, Ltd. - ADR 9,463 3,684 Mesoblast, Ltd. - ADR (a) 71,323 1,568 National Australia Bank, Ltd. - ADR 10,396 189,364 Belgium - 1.5% 233 Galapagos NV - ADR (a) 31,026 1,375 Materialise NV - ADR (a) 55,908 86,934 Canada - 38.0% 7,200 Alexco Resource Corporation (a) 22,248 1,089 Algonquin Power & Utilities Corporation 15,061 914 Aurinia Pharmaceuticals, Inc. (a) 13,555 12,605 Auryn Resources, Inc. (a) 24,580 1,140 B2Gold Corporation 7,684 2,052 Ballard Power Systems, Inc. (a) 34,063 1,650 Barrick Gold Corporation 48,923 132 BCE, Inc. 5,677 4,774 BlackBerry, Ltd. (a) 24,920 748 Brookfield Asset Management, Inc. - Class A 25,238 1,049 CAE, Inc. (a) 16,585 376 Canada Goose Holdings, Inc. (a) 9,208 462 Canadian National Railway Company 48,316 1,963 Canadian Natural Resources, Ltd. 38,612 146 Canadian Pacific Railway, Ltd. 43,169 1,491 Canadian Solar, Inc. (a) 48,443 1,635 Canopy Growth Corporation (a) 26,963 840 Canopy Growth Corporation (a) 13,877 2,220 Cascades, Inc. 23,607 2,744 Celestica, Inc. (a) 21,815 11 Constellation Software, Inc. 12,734 1,064 Descartes Systems Group, Inc. (a) 64,851 2,039 Dollarama, Inc. 79,600 1,597 Eldorado Gold Corporation (a) 18,238 13,136 EMX Royalty Corporation (a) 38,357 17,174 Enerplus Corporation 45,511 1,337 Fortis, Inc.
    [Show full text]
  • BMO Precious Metals Fund (The “Fund”) for the Six-Month Period Ended March 31, 2015 (The “Period”) Manager: BMO Investments Inc
    BMO Precious Metals Fund (the “Fund”) For the six-month period ended March 31, 2015 (the “period”) Manager: BMO Investments Inc. (the “Manager” or “BMOII”) Portfolio manager: BMO Asset Management Inc., Toronto, Ontario (the “portfolio manager”) 2015 Semi-Annual Management Report of Fund Performance This semi-annual management report of fund performance contains financial highlights but does not contain the complete semi-annual or annual financial statements of the Fund. If the semi-annual financial statements of the Fund do not accompany the mailing of this report, you may obtain a copy of the semi-annual or annual financial statements at your request, and at no cost, by calling 1-800-665-7700, by writing to us at BMO Investments Inc., First Canadian Place, 100 King Street West, 43rd Floor, Toronto, Ontario, M5X 1A1 or by visiting our website at www.bmo.com/mutualfunds or SEDAR at www.sedar.com. You may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy voting disclosure record and/or quarterly portfolio disclosure. MANAGEMENT DISCUSSION OF FUND PERFORMANCE Results of Operations statutory royalties in 2015, and Continental Gold Limited, as During the period, the Fund’s total net asset value the company’s exploration property in Colombia was not decreased from approximately $61 million to approximately yet generating cash flows. $57 million. Series A units of the Fund returned -2.81%. Several new gold mining holdings were introduced to the Please see the Past Performance section for information on Fund during the period, including Richmont Mines Inc., the performance returns of the Fund’s other series.
    [Show full text]
  • 2020 Proxy Season Overview Highlights from the Tsx60
    2020 PROXY SEASON OVERVIEW HIGHLIGHTS FROM THE TSX60 AND COMMENTARY ON THE IMPACTS OF COVID19 In Summary 2019 was a stellar year for the TSX overall, but circumstances drastically changed in February/March 2020. The unprecedented impacts of COVID-19 halted businesses and resulted in one of the fastest share price declines in history. Adding to these difficulties, firms in the Energy sector had to overcome tumbling oil prices and a lack of storage due to the demand shock and OPEC / Russia market share battle. At the other end, the Materials sector excelled as the S&P/TSX Materials Capped Index saw 2020 YTD to May 31, 2020 performance of +10% (vs. -11% for the S&P/TSX Composite Index). During this time, compensation has been an important topic to all stakeholders, and we have seen numerous firms implement reductions or deferrals in executive and director compensation. As in the recent past, executive compensation trends in 2019 regarding the design of incentive plans and the use of the performance metrics remain relatively stable. Greater emphasis continues on items related to environment, social and governance topics, with notable emphasis on the “social” component as boards grapple with employee safety, diversity and inclusion. S&P/TSX Indices Equity Market Price Changes - FY2019 and 2020 YTD Top 3 TSX60 Performers End of 2019 Shopify Inc. 453.5% 60% Capped Materials Wheaton Precious Metals Corp. 122.6% 40% 38.13% 20% 11.77% TSX60 Kinross Gold Corporation 103.4% 0% 5.89% -2.16% Composite Bottom 3 TSX60 Performers -20% Bombardier Inc. -78.1% -40% -41.17% Capped Financials Ovintiv Inc.
    [Show full text]
  • PF-Qrtly-2020-08.Pdf
    ▪ To be one of Canada’s most respected ▪ We have approximately 600 clients investment counselling firms focused on with a range of portfolios up to $100 private clients and foundations million in size ▪ 98% client retention rate (1) ▪ Our new branding rollout is ▪ Thankfully, everyone is healthy! underway – website refresh coming ▪ The majority of our team is working soon remotely; a small team remains in the office to handle physical documents ▪ A recovery requires: fiscal stimulus, monetary stimulus ▪ Record unemployment with record savings? and genuine medical progress ▪ Fiscal and monetary response ▪ Medical progress and safer workplaces ▪ Second wave worries ▪ Expiration of government programs ▪ Government spending and borrowing will have limits ▪ Interest rates now at the “lower bound” ▪ Quantitative easing could increase ▪ Forbearance, deferrals and rent relief won’t last forever ▪ Vaccine progress undeniable ▪ 29 in clinical trials, of which 7 already in Phase 3 trials ▪ 138 more in preclinical evaluation ▪ Russia claims success… ▪ Managing cases has improved ▪ Better patient care ▪ Therapeutic advances ▪ PPE supplies ▪ U.S. political dysfunction ▪ November 3rd election looms ▪ Deteriorating Chinese relations with rest of world ▪ Brexit ▪ No news is bad news ▪ Growing government debt burdens ▪ Asset allocations maintain a modestly conservative tilt ▪ Fixed income portfolios have short durations ▪ Concentration in higher-quality credits continues ▪ A diversified portfolio invested in quality businesses should perform well over time ▪ We remain confident in our holdings A small increase (1%) produces a > 9% price reduction (1) } ▪ Central banks have suppressed yields ▪ Short-maturity bonds of highly rated corporates and government agencies should deliver positive returns – without the risk of capital loss George Weston Limited Thomson Reuters United Parcel Service HP Inc.
    [Show full text]
  • Featured in This Report Midday Market Performance Update
    SCOTIA WEALTH MANAGEMENT Midday Update March 30, 2021 Featured in this report Midday market performance update Canadian equities: U.S. equities: International equities: < Market summary < Market summary < Market summary < Companies in the news: CP < Companies in the news: PYPL, MCK < Company in the news: BP Midday market performance update Intraday returns S&P 500 NASDAQ S&P/TSX Index Stoxx Europe 600 Nikkei 225 Shanghai Comp 3,958 13,058 18,704 431 29,433 3,457 -0.3% 0.0% -0.1% 0.8% 0.2% 0.6% Canada 10-year yield U.S. 10-year yield 1.56% 1.73% Low High Low High 0.43 1.68 0.5 1.77 CAD/USD USD (trade-weighted) $0.79 104.88 Low High Low High 0.7 0.81 102.22 114.69 Gold WTI (oil) $1685.94 $60.73 Low High Low High 1569.07 2075.47 29 67.79 Bar charts display current values relative to 52-week ranges. SCOTIA WEALTH MANAGEMENT Canadian equities S&P/TSX Composite Index Intraday (12:00 PM) < Canadian equities, as measured by the S&P/TSX Composite Index, are Level Pts Chg % Chg trading slightly lower at midday. 18,704 -15.1 -0.1% 19,000 1,000 < Six of the index’s eleven sectors are lower, with the Materials sector seeing 850 17,000 the largest losses. 700 15,000 550 400 13,000 S&P/TSX biggest movers 250 Last price % 11,000 100 ∆ Mar Jun Sep Dec Mar Hudbay Minerals Inc 8.53 6.0% 6.0% Ballard Power Systems Inc 28.37 5.9% 5.9% Issues Exchange Income Corp 41.44 5.2% 5.2% < Advancing 93 < Declining 123 Interfor Corp 27.25 4.8% 4.8% < Unchanged 2 Shopify Inc 1,346.84 3.0% 3.0% Index stats: B2Gold Corp 5.29 -7.2% 7.2% < 1-yr return 43.5% Kirkland Lake Gold Ltd 40.39 -5.0% 5.0% < P/E 27.6x < Dividend yield 2.9% New Gold Inc 1.94 -4.9% 4.9% Fortuna Silver Mines Inc 7.56 -4.5% 4.5% Iamgold Corp 3.67 -4.2% 4.2% In corporate news: Canadian Pacific Railway Ltd.
    [Show full text]
  • Kirkland Lake Gold Ltd. (Exact Name of Registrant As Specified in Its Charter)
    _____________________________________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 40-F ☐ Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934 or ☒ Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020 Commission File Number 001-38179 ________________ Kirkland Lake Gold Ltd. (Exact name of Registrant as specified in its charter) Ontario 1000 N/A (Province or other jurisdiction of incorporation or (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) organization) 200 Bay Street, Suite 2800 Toronto, Ontario M5J 2J1 Canada (416) 840-7884 (Address and telephone number of Registrant’s principal executive offices) ________________ Registered Agent Solutions, Inc. 99 Washington Avenue Suite 1008 Albany, NY 12260 (888) 705-7274 (Name, address (including zip code) and telephone number (including area code) of agent for service in the United States) ________________ Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares, no par value KL New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None. Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None For annual reports, indicate by check mark the information
    [Show full text]