Author: TSX Stocks

Copper Price Crash Threatens Zambia’s Economic Stability


Copper Price Crash Threatens Zambia’s Economic Stability

Zambia is bracing for severe economic repercussions following a dramatic fall in global copper prices, with fears mounting over potential job losses, reduced government revenue, and delayed mining investments. The slump was triggered by an escalating global trade war and new U.S. tariffs, which have sent shockwaves through commodity markets.


On Friday, copper futures on the Comex market dropped by 9.1% to $4.388 per pound ($9,670 per tonne), while prices in London fell 6.8% to $8,734 per tonne levels last seen during the early stages of the  pandemic. The downturn follows warnings from BNP Paribas and Citigroup, both forecasting further declines and a likely global recession if trade tensions persist.

Copper accounts for over 70% of Zambia’s export earnings, making the country especially vulnerable to commodity price shocks. A prolonged dip in copper prices could significantly affect the government’s fiscal projections, especially as it struggles with a growing debt burden and a weakening kwacha. The Ministry of Finance is expected to revise its 2025 budget assumptions if the trend continues.

Mining giants operating in Zambia have already started feeling the pressure. First Quantum Minerals, which owns Kansanshi and Sentinel Mines, saw its shares plunge 12.8% on the Toronto Stock Exchange. The company has warned of possible cuts in capital spending and a review of production targets in light of falling global demand.

Meanwhile, local suppliers and contractors who rely on the mining sector are likely to experience delays in payments or outright cancellations of service contracts. This will have a ripple effect on employment in Copperbelt and North-Western Provinces, where the bulk of mining activity is concentrated.

Economic analysts warn that Zambia could experience a shortfall in foreign exchange inflows, exacerbating pressure on the kwacha and increasing inflationary risks. “The drop in copper prices has the potential to reverse recent gains in macroeconomic stability, and this could lead to more borrowing or austerity measures.”

The situation also places Zambia’s debt restructuring negotiations in a more complicated position. The country recently secured partial relief from international creditors, but continued reliance on copper revenue means any sustained price weakness could erode confidence among lenders and investors.

Small-scale miners, often overlooked in policy circles, are equally exposed. With tighter margins and limited reserves, many could be forced to suspend operations if prices fall below viable thresholds. Calls are growing for the government to consider emergency support or tax relief to cushion vulnerable players in the sector.

As the world’s eighth-largest copper producer, Zambia’s prospects are tightly linked to global economic trends. With copper prices now on a downward spiral, stakeholders are urging diplomatic solutions to the trade standoff, alongside robust domestic strategies to diversify the economy and reduce dependence on a single commodity.

April 9, 2025
By Edwin Daka
©️ KUMWESU


ISC Reiterates Recommendation to REJECT Plantro’s Revised Mini-Tender Offer


ISC Reiterates Recommendation to REJECT Plantro’s Revised Mini-Tender Offer – Toronto Stock Exchange News Today – EIN Presswire




















Trusted News Since 1995

A service for global professionals
·
Thursday, April 10, 2025

·
801,972,873
Articles


·
3+ Million Readers

News Monitoring and Press Release Distribution Tools

News Topics

Newsletters

Press Releases

Events & Conferences

RSS Feeds

Other Services

Questions?




Mining company to test drill for copper, gold in northern Wisconsin

STAFF WITH THE Wisconsin Department of Natural Resources and the U.S. Forest Service meet with representatives of GreenLight Metals at the site of proposed exploratory drilling for copper and gold within the Chequamegon-Nicolet National Forest in Taylor County. (Photo courtesy of GreenLight Metals, via Wisconsin Public Radio)

A Canadian mining company has been cleared to begin exploratory drilling for copper and gold in northern Wisconsin.

GreenLight Metals, which does business as Green Light Wisconsin, says it wants to make the state a “premier” domestic producer of critical minerals. The company has received state and federal approvals to conduct exploratory drilling of the Bend Deposit on U.S. Forest Service land northwest of Medford in Taylor County. The deposit is believed to contain 4 million tons of mostly copper and gold. The company plans to drill eight holes on six drill sites spanning less than an acre.

The announcement comes as the company will go public Monday on the Toronto Stock Exchange. CEO Matt Filgate said becoming a public company will speed up mining exploration of the Penokean Volcanic Belt in Wisconsin.

“This access to capital markets will directly benefit our projects, allowing us to advance our drilling programs, create local employment opportunities and strengthen Wisconsin’s position in critical mineral development,” Filgate said in a statement. “As a company with deep Wisconsin roots, we’re committed to responsible exploration that respects both the environment and the communities where we operate.”

The company has raised about $4 million to $5 million for exploration activities from individual investors, according to Steve Donohue, who serves on the company’s board of directors. “We still have a couple steps to go through to get that set up. But hopefully by summer sometime, we will be out there drilling at the Bend Deposit,” Donohue told WPR.

THE FLAMBEAU MINE near Ladysmith, Wis., shown in a photo taken in 1997. The operation is the only sulfide mine permitted by the state in the last 40 years. (Wisconsin Department of Natural Resources)

The company recently provided updates on its exploration plans to town board members in Westboro, as well as officials serving on the Taylor County mining committee. Donohue said GreenLight plans to engage more with local communities in the coming months as it prepares for exploratory drilling.

GreenLight Metals needs to provide the state with 48-hour notice prior to drilling, said Molly Gardner, metallic mining coordinator for the Wisconsin Department of Natural Resources. Gardner said the agency will be there to monitor operations when the company begins drilling, and the agency plans to conduct unannounced inspections.

“We’ll get on-site, and we’ll make sure the company is following their plan,” Gardner said. “It’s important to us. It’s important to everyone for the protection of our resources.”

The company has obtained state permits to control stormwater runoff, as well as any water that leaves the site as a result of drilling. The Forest Service has also granted approval of the company’s plan, and the agency plans to monitor operations. In late February, GreenLight Metals submitted a $50,000 bond to the state to cover the cost of abandoning drill holes.

“Our ultimate goal would be to expand the resource through subsequent drilling, so increase the size of the deposit through drilling and confirming what’s there,” Donohue said. “Then, (the company will) eventually do engineering studies on that and see if there’s a viable resource there that could be developed at some point down the road.”

Donohue said it would be at least five years before the company has done enough drilling and studies to determine whether a mine could be developed under Wisconsin law. At that point, he added it would likely take another four years to go through the state’s permitting process.

Some residents, environmental groups and tribes have expressed concerns that the company’s plans would contaminate water resources surrounding the Reef and Bend Deposits.

In March, the Lac du Flambeau Band of Lake Superior Chippewa filed petitions for a contested case hearing and judicial review, challenging the construction site storm water permit issued to GreenLight Metals for drilling.

Metals like gold and copper that occur in sulfide ore bodies haven’t been mined in Wisconsin since the Flambeau mine shut down in 1997. The mine served as a catalyst for the state’s sulfide mining moratorium that was repealed in 2017 under a law passed by the Republican-controlled state Legislature.

Drill plans come amid demand for domestic supply of critical minerals

The company also owns or leases minerals for other sites, including the Reef Deposit in Marathon County. The deposit is roughly 12 miles east of Wausau and contains about 454,000 tons of gold reserves. GreenLight Metals has also expressed interest in the Lobo and Lobo East properties as part of a massive sulfide deposit 15 miles southwest of the town of Crandon, which contains zinc and copper. It also owns rights to the Swede deposit in northern Wisconsin.

In 2022, the DNR requested additional information from GreenLight Metals for its plans to explore the Reef Deposit, but Gardner said no further details have yet been provided to the agency.

Donohue said the company is reviewing where it may conduct exploratory drilling next.

“As we look as a society to do things like electric vehicles, green energy generation, we need to have secure supply chains of those critical metals that go into those technologies,” Donohue said, adding those metals occur in Wisconsin.

He said that includes metals such as copper, zinc and tellurium that’s used to manufacture solar panels. The clean energy transition is set to increase demand for such minerals, according to the International Energy Agency.

President Donald Trump invoked the Defense Production Act in March to boost domestic mineral production. Former President Joe Biden also invoked the law to ensure domestic supply of critical minerals for the clean energy transition.

Teck to Release First Quarter 2025 Results on April 24, 2025


Teck to Release First Quarter 2025 Results on April 24, 2025 – Toronto Stock Exchange News Today – EIN Presswire




















Trusted News Since 1995

A service for global professionals
·
Wednesday, April 9, 2025

·
801,774,591
Articles


·
3+ Million Readers

News Monitoring and Press Release Distribution Tools

News Topics

Newsletters

Press Releases

Events & Conferences

RSS Feeds

Other Services

Questions?




Chartwell’s $1-billion (and counting) year of growth

Chartwell L'Envol is a new-build retirement residence in Quebec City, recently acquired by Chartwell. (Courtesy Chartwell)
Chartwell L’Envol is a new-build retirement residence in Quebec City, recently acquired by Chartwell. (Courtesy Chartwell)

Chartwell Retirement Residences is already Canada’s largest provider of seniors housing, has grown by more than $1 billion in acquisitions during the past 10 months, and intends to continue its prodigious expansion.

Its latest new properties were announced on April 1, when Chartwell closed on two residences in Quebec City and acquired the remaining 15 per cent interest it didn’t previously own in a third building just outside the provincial capital.

“We see and are feeling great tailwinds for our business,” Chartwell chief investment officer Jonathan Boulakia told RENX.

“Our occupancies at our existing properties have increased significantly over the last couple of years, and there’s a great sense of optimism for the industry generally and for our company specifically for the future, so we think this is a good opportunity to be acquiring newer assets. 

“We are trying to optimize our portfolio by buying newer stock assets and lowering the age of our portfolio by increasing our ownership stake in newer assets. And these acquisitions have all been of newly built properties in great markets, and we’re acquiring them for significantly less than their replacement cost.”

Chartwell owns interests in over 170 residences in four Canadian provinces, serving over 25,000 residents.

Supply and demand is benefitting retirement residences

Retirement residences have bounced back well after the asset class experienced a downturn during the height of the COVID-19 pandemic. Chartwell’s same property occupancy rate was 92 per cent in January, up from 86.4 per cent a year earlier.

“There were a couple of years where there was more reluctance to move in to congregate living, but we are a needs-based business so that has created pent-up demand, which we’re enjoying,” Boulakia noted. “We’re enjoying very strong demographic growth in our market segment.

“The 75-year-old-plus segment of the Canadian population is growing at a rate in excess of the general population. Just to keep up with existing market penetration and the increased demand, there would have to be a lot more product coming online, which there isn’t because there was a slowdown in construction for the last few years. 

“So we’re seeing less inventory coming on the market. We’re seeing more demand simply because of demographics. So it’s a simple supply and demand equation which is helping us.”

Chartwell’s development pipeline

Chartwell isn’t just focused on acquisitions. Boulakia said it also has a development pipeline with sites across Canada. 

“We’re still working on figuring out how to make them work with increased development costs. But it’s not a question of whether, it’s a question of when we take on these developments.

“We’re also focused on developing partnerships with local developers, the same kind of model that we have in Quebec, where we align ourselves with reputable developers to build product to our specifications that we will manage and lease up and then acquire once it’s full. 

“That achieves our goal of maintaining a strong pipeline of new assets. It also works very well for developers who are maybe not as interested in operating assets, but rather in developing new product.”

Selling non-core properties

While Chartwell has a growth strategy utilizing both acquisitions and development, it’s also looking to optimize its portfolio through selling certain residences.

“We’re continuously identifying product that is no longer core to our strategy, and that might be for a number of reasons,” Boulakia explained. “It could be geography, it could be size since we’re now shifting towards bigger product, or it could be age.

“A number of factors will play into the equation, and it could result in us deciding that a property is no longer core to our strategy.”

Boulakia declined to name any of these properties and didn’t want to get into specifics about future acquisitions, but said: “There are a handful of assets in Ontario and Quebec that we will be looking at and that we no longer consider core to our portfolio. And at any given time there are a number of acquisition opportunities that we’re evaluating and underwriting and at various stages of negotiation on.”

Chartwell is a “very purpose-driven company” with a vision of making people’s lives better, Boulakia said.

“We look at every acquisition, disposition and development through that angle. Are we making the lives of our residents and their families and our staff better? That’s what drives our decisions.”

Debt and equity financing

Financing for Chartwell’s acquisitions and developments comes from a mix of debt and equity. It had liquidity of $282.9 million on Feb. 27, which included $43.7 million of cash and cash equivalents and $239.2 million of available borrowing capacity on its credit facilities.

Chartwell trades on the Toronto Stock Exchange and has a market cap of about $4.5 billion. Its share price closed at $16.32 on April 7, closer to the top than the bottom of its 52-week high and low prices of $17.69 and $12.15.

“We get attractive debt for our residences,” Boulakia said. “Stabilized residences attract CMHC financing, which is at very attractive rates in Canada.

“So debt is an important component and equity, our share price, has been a strong performer over the last couple of years. Our corresponding cost of capital has come down a fair bit over the last couple years, so we’re able to access the public markets for good accretive transactions.”

Trump tariffs and Canada: Trump raising tariffs on China to 125%, pausing reciprocal tariffs for 90 days; Effect on Canada, Mexico unclear

U.S President Donald Trump’s escalating trade war is causing market volatility. Follow the Star’s live updates on Wednesday. 

ARTICLE CONTINUES BELOW

Varcoe: Canadian producers more battle-tested than U.S. to withstand strain of lower oil prices

‘We’ve been at this a lot longer than the U.S. industry . . . There’s no doubt in my mind their sustaining capital requirements are a lot higher than what we have here in Canada,’ Cenovus Energy CEO Jon McKenzie said

Article content

Crude prices sagged below US$60 a barrel on Tuesday, but Canadian oil and gas executives, investors and analysts believe the sector is battle-tested and better positioned to withstand a storm than the industry south of the border.

Advertisement 2

Story continues below

Article content

Article content

Article content

Benchmark West Texas Intermediate crude prices fell $1.12 to close at $59.58 a barrel on Tuesday — its lowest point since 2021 — continuing a slide that began last week amid tariff worries and concerns about increased OPEC+ production. On Wednesday, oil dropped below $56 a barrel at one point, but closed the day at $62.35.

Cenovus Energy CEO Jon McKenzie, chair of the Canadian Association of Petroleum Producers, said Tuesday the price drop has been “short and violent,” but he doesn’t expect much to change for Canadian companies in the short term.

He pointed out the industry became more efficient after oil prices tanked a decade ago.

“We’ve been at this a lot longer than the U.S. industry . . . There’s no doubt in my mind their sustaining capital requirements are a lot higher than what we have here in Canada,” McKenzie said in an interview.

Article content

Advertisement 3

Story continues below

Article content

“I suspect you’re going to continue to see the resiliency of Canadian companies outpace the international peers in any kind of downdraft in commodity prices.”

At the annual BMO CAPP Energy Symposium in Toronto, company CEOs and investors spoke about the ramifications of the sudden drop in equity and oil markets, the future of LNG development, and the ability of the sector to handle more turbulence after enduring the collapse of oil prices in 2015 and the pandemic five years ago.

On the Toronto Stock Exchange, the S&P/TSX Capped Energy Index fell 4.8 per cent. It’s down almost 20 per cent over the past five trading days, while oil prices have dropped $12 in the past week.

Having paid down billions of dollars in debt in recent years, Canadian producers only need oil to average $51 a barrel to keep output flat and pay planned dividends, said Eric Nuttall, a senior portfolio manager with Ninepoint Partners.

Advertisement 4

Story continues below

Article content

“I contrast that to the U.S., where we think below $60, they are in the death zone — cash flow is not enough to sustain production,” he said.

“U.S. shale is much more susceptible to an oil price shock.”

Recommended from Editorial

  1. Alberta's then-Minister of Finance Robin Campbell speaks to the media about the government's 2014-15 second quarter fiscal update and economic statement at the Alberta Legislature in Edmonton on Nov. 26, 2014.

    Varcoe: No need for Alberta to panic, Danielle Smith says, as oil prices tumble to $61 amid economic havoc in U.S.

  2. A pumpjack draws out oil from a wellhead near Calgary.

    Varcoe: ‘Market is fearful’ — Global trade war, increased OPEC production shock oil prices, stocks

On Tuesday, a note by S&P Global Commodity Insights said if global oil prices slumped to $50 a barrel, onshore U.S. oil output could decline by more than one million barrels per day over 12 months.

The U.S. is the largest oil producer in the world, with output averaging 13.2 million barrels per day last year, and the Trump administration is pushing for more domestic output.

“Production is still growing right now and activity is relatively high. Yeah, of course, if prices go lower from here, that is going to cause concerns among producers,” U.S. Energy Secretary Chris Wright told CNBC in an interview.

Advertisement 5

Story continues below

Article content

“We’re allowing pipelines to be built (and) export terminals. So clearly, these are signals that are going to increase supply.”

U.S. President Donald Trump holds an executive order after signing a series of orders on American energy production during a ceremony in the East Room of the White House on April 8, 2025 in Washington, DC. The Trump administration has elected to roll back Biden-era environmental policies with the intention to help revive coal-fired plants in order to restore America’s energy independence. Trump was joined by (L-R) EPA Administrator is Lee Zeldin, Interior Secretary Doug Bergum, and Energy Secretary Chris Wright.
U.S. President Donald Trump holds an executive order after signing a series of orders on American energy production during a ceremony in the East Room of the White House on April 8, 2025 in Washington, DC. The Trump administration has elected to roll back Biden-era environmental policies with the intention to help revive coal-fired plants in order to restore America’s energy independence. Trump was joined by (L-R) EPA Administrator is Lee Zeldin, Interior Secretary Doug Bergum, and Energy Secretary Chris Wright. Anna Moneymaker/Getty Images

But a new report by Enverus Intelligence Research pointed out that the Canadian oilsands have a “low break-even advantage” below $50 a barrel, and that recent weak oil price and U.S. trade tensions “will only marginally slow down growth.”

It projects the oilsands will grow by about 400,000 barrels per day (bpd) by the decade’s end, mainly from thermal projects.

In a survey last month conducted by the Federal Reserve Bank of Dallas, U.S. oil and gas executives said they need US$41 a barrel to cover operating costs for existing wells and, on average, they require $65 a barrel to profitably drill a new well.

In Canada, that figure would be $45 a barrel, said BMO Capital Markets analyst Randy Ollenberger.

“Canada is positioned very, very well,” said Dean Setoguchi, CEO of energy infrastructure firm Keyera Corp.

Advertisement 6

Story continues below

Article content

“We are very rich in resource, and we are still in earlier stages of development than, let’s say, the major U.S. basins. So our cost of supply is very, very competitive.”

But how will producers respond to the volatility if it continues?

At this point, analysts don’t expect major changes in capital spending programs, pointing out natural gas prices should improve as the LNG Canada project begins operations later this year.

“It’s too early (to say) if it’s going to have any kind of lasting effect,” Tourmaline Oil CEO Mike Rose said of the turbulence.

“We’ll just see what happens over the next month or two, and what our second half 2025 capital program should look like. It hasn’t caused us to change any of our longer-term plans.”

Mike Rose
Mike Rose, CEO of Tourmaline Oil Corp.

“Nothing has changed at this point. If we have to reduce some capital, that’s a quick and easy thing to do,” added Doug Bartole, CEO of InPlay Oil Corp.

Advertisement 7

Story continues below

Article content

The sector is expected to direct $39.5 billion to capital expenditures this year and potentially increase output by 2.2 per cent, notwithstanding weaker commodity prices or further trade war fallout, according to Calgary-based Studio.Energy.

Energy economist Peter Tertzakian said if oil prices remain around current levels, it would affect oilpatch capital spending over time, but not enough to lead to serious production loss this year.

Tertzakian expects Canadian industry revenues to reach $172 billion if oil averages $66 a barrel this year, but that figure would decline by about $12 billion if oil averages $61 throughout 2025.

He pointed out that Canadian producers benefit from the lower dollar, relative to the U.S. greenback, and a narrower price discount for Western Canadian Select heavy oil recently. The industry has also seen increased consolidation, creating larger companies with more scale.

And he doesn’t believe oil prices will stay below $60 a barrel for a long period, as the supply side would respond.

“You would see high-decline shale (oil) production in the United States fall off fairly quickly, before, certainly, our oilsands would fall off,” said Tertzakian, founder and president of Studio.Energy.

“We are in decent shape to weather the storm. That doesn’t mean it leads to robust and healthy economics, but certainly, we can weather the storm.”

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com

Article content

Comments

Join the Conversation

Featured Local Savings

Varcoe: Canadian producers more battle-tested than U.S. to withstand strain of oil prices below $60

‘We’ve been at this a lot longer than the U.S. industry . . . There’s no doubt in my mind their sustaining capital requirements are a lot higher than what we have here in Canada,’ Cenovus Energy CEO Jon McKenzie said

Article content

Crude prices sagged below US$60 a barrel on Tuesday, but Canadian oil and gas executives, investors and analysts believe the sector is battle-tested and better positioned to withstand a storm than the industry south of the border.

Advertisement 2

Story continues below

Article content

Article content

Article content

Benchmark West Texas Intermediate crude prices fell $1.12 to close at $59.58 a barrel on Tuesday — its lowest point since 2021 — continuing a slide that began last week amid tariff worries and concerns about increased OPEC+ production. On Wednesday morning, oil had dropped by more than $2 to $57.48 a barrel as of 8 a.m. MT.

Cenovus Energy CEO Jon McKenzie, chair of the Canadian Association of Petroleum Producers, said the price drop has been “short and violent,” but he doesn’t expect much to change for Canadian companies in the short term.

He pointed out the industry became more efficient after oil prices tanked a decade ago.

“We’ve been at this a lot longer than the U.S. industry . . . There’s no doubt in my mind their sustaining capital requirements are a lot higher than what we have here in Canada,” McKenzie said in an interview.

“I suspect you’re going to continue to see the resiliency of Canadian companies outpace the international peers in any kind of downdraft in commodity prices.”

Article content

Advertisement 3

Story continues below

Article content

At the annual BMO CAPP Energy Symposium in Toronto, company CEOs and investors spoke about the ramifications of the sudden drop in equity and oil markets, the future of LNG development, and the ability of the sector to handle more turbulence after enduring the collapse of oil prices in 2015 and the pandemic five years ago.

On the Toronto Stock Exchange, the S&P/TSX Capped Energy Index fell 4.8 per cent. It’s down almost 20 per cent over the past five trading days, while oil prices have dropped $12 in the past week.

Having paid down billions of dollars in debt in recent years, Canadian producers only need oil to average $51 a barrel to keep output flat and pay planned dividends, said Eric Nuttall, a senior portfolio manager with Ninepoint Partners.

“I contrast that to the U.S., where we think below $60, they are in the death zone — cash flow is not enough to sustain production,” he said.

Advertisement 4

Story continues below

Article content

“U.S. shale is much more susceptible to an oil price shock.”

Recommended from Editorial

  1. Alberta's then-Minister of Finance Robin Campbell speaks to the media about the government's 2014-15 second quarter fiscal update and economic statement at the Alberta Legislature in Edmonton on Nov. 26, 2014.

    Varcoe: No need for Alberta to panic, Danielle Smith says, as oil prices tumble to $61 amid economic havoc in U.S.

  2. A pumpjack draws out oil from a wellhead near Calgary.

    Varcoe: ‘Market is fearful’ — Global trade war, increased OPEC production shock oil prices, stocks

On Tuesday, a note by S&P Global Commodity Insights said if global oil prices slumped to $50 a barrel, onshore U.S. oil output could decline by more than one million barrels per day over 12 months.

The U.S. is the largest oil producer in the world, with output averaging 13.2 million barrels per day last year, and the Trump administration is pushing for more domestic output.

“Production is still growing right now and activity is relatively high. Yeah, of course, if prices go lower from here, that is going to cause concerns among producers,” U.S. Energy Secretary Chris Wright told CNBC in an interview.

Advertisement 5

Story continues below

Article content

“We’re allowing pipelines to be built (and) export terminals. So clearly, these are signals that are going to increase supply.”

U.S. President Donald Trump holds an executive order after signing a series of orders on American energy production during a ceremony in the East Room of the White House on April 8, 2025 in Washington, DC. The Trump administration has elected to roll back Biden-era environmental policies with the intention to help revive coal-fired plants in order to restore America’s energy independence. Trump was joined by (L-R) EPA Administrator is Lee Zeldin, Interior Secretary Doug Bergum, and Energy Secretary Chris Wright.
U.S. President Donald Trump holds an executive order after signing a series of orders on American energy production during a ceremony in the East Room of the White House on April 8, 2025 in Washington, DC. The Trump administration has elected to roll back Biden-era environmental policies with the intention to help revive coal-fired plants in order to restore America’s energy independence. Trump was joined by (L-R) EPA Administrator is Lee Zeldin, Interior Secretary Doug Bergum, and Energy Secretary Chris Wright. Anna Moneymaker/Getty Images

But a new report by Enverus Intelligence Research pointed out that the Canadian oilsands have a “low break-even advantage” below $50 a barrel, and that recent weak oil price and U.S. trade tensions “will only marginally slow down growth.”

It projects the oilsands will grow by about 400,000 barrels per day (bpd) by the decade’s end, mainly from thermal projects.

In a survey last month conducted by the Federal Reserve Bank of Dallas, U.S. oil and gas executives said they need US$41 a barrel to cover operating costs for existing wells and, on average, they require $65 a barrel to profitably drill a new well.

In Canada, that figure would be $45 a barrel, said BMO Capital Markets analyst Randy Ollenberger.

“Canada is positioned very, very well,” said Dean Setoguchi, CEO of energy infrastructure firm Keyera Corp.

Advertisement 6

Story continues below

Article content

“We are very rich in resource, and we are still in earlier stages of development than, let’s say, the major U.S. basins. So our cost of supply is very, very competitive.”

But how will producers respond to the volatility if it continues?

At this point, analysts don’t expect major changes in capital spending programs, pointing out natural gas prices should improve as the LNG Canada project begins operations later this year.

“It’s too early (to say) if it’s going to have any kind of lasting effect,” Tourmaline Oil CEO Mike Rose said of the turbulence.

“We’ll just see what happens over the next month or two, and what our second half 2025 capital program should look like. It hasn’t caused us to change any of our longer-term plans.”

Mike Rose
Mike Rose, CEO of Tourmaline Oil Corp.

“Nothing has changed at this point. If we have to reduce some capital, that’s a quick and easy thing to do,” added Doug Bartole, CEO of InPlay Oil Corp.

Advertisement 7

Story continues below

Article content

The sector is expected to direct $39.5 billion to capital expenditures this year and potentially increase output by 2.2 per cent, notwithstanding weaker commodity prices or further trade war fallout, according to Calgary-based Studio.Energy.

Energy economist Peter Tertzakian said if oil prices remain around current levels, it would affect oilpatch capital spending over time, but not enough to lead to serious production loss this year.

Tertzakian expects Canadian industry revenues to reach $172 billion if oil averages $66 a barrel this year, but that figure would decline by about $12 billion if oil averages $61 throughout 2025.

He pointed out that Canadian producers benefit from the lower dollar, relative to the U.S. greenback, and a narrower price discount for Western Canadian Select heavy oil recently. The industry has also seen increased consolidation, creating larger companies with more scale.

And he doesn’t believe oil prices will stay below $60 a barrel for a long period, as the supply side would respond.

“You would see high-decline shale (oil) production in the United States fall off fairly quickly, before, certainly, our oilsands would fall off,” said Tertzakian, founder and president of Studio.Energy.

“We are in decent shape to weather the storm. That doesn’t mean it leads to robust and healthy economics, but certainly, we can weather the storm.”

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com

Article content

Comments

Join the Conversation

Featured Local Savings

World Metal & Mining ETFs – Q1 2025 in Review

Share this article

31.Dec.2024 – 31.Mar.2025

231 ETFs

Metal ETFs, Miners ETFs, Metal and Miners Hedged & Leveraged ETFs
Total Assets (AUM) ~ $362.9 B USD

Total assets for the World’s 231 Metal & Mining ETFs finished Q1.2025, at USD $362.9 B. This is an increase of +11.0% from the Q4.2024, year end close of USD $330.7 B. Growth in Metal & Mining ETF assets over Q1.2025, was driven principally by gains in Gold ETFs which still make up ~72% of all Metal & Mining ETF assets worldwide.

There was 1 new Mining ETF launched in Q1.2025, Sprott Active Gold & Silver Miners ETF (NASDAQ: GBUG) (first day of trading, February 20th, 2025). 0 ETFs were retired or delisted.

Performance Leaders, Q1 2025

Leveraged Gold Metal Miners ETFs (Miners Leveraged ETFs, subcategory) lead the performance tables for Q1.2025.

Performance Laggards, Q1 2025

Inverse Leveraged Gold Miners ETFs (Miners Leveraged ETFs, subcategory) were performance laggards for Q1. 2025.

Metal and Mining ETFs, Q1 2025

The best performing Gold ETF and the best performing Silver ETF internationally for Q1.2025 were QNB Finans Portföy Gold ETF (Borsa Istanbul: GLDTR.F) +24.1% and QNB Finans Portföy Silver ETF (Borsa Istanbul: GMSTR.F) +29.4% respectively. Outperformance of these ETFs, which are denominated in Turkish Lira (TRY, ₺), resulted from Turkish Lira  (TRY, ₺) depreciation against other major currencies during Q1.2025. Turkish Lira depreciation enhanced domestic performance for both gold and silver resulting in ETF outperformance when measured in Lira (TRY, ₺).

The best performing physical metal ETC for Q1.2025 was Xtrackers Physical Rhodium ETC (London Stock Exchange: XRH0) +51.9%. Rhodium prices finally bounced in Q1.2025 after a multi-year sell off following all-time highs for Rhodium which were set in February 2021.

The worst performing physical metal ETF for Q1.2025 was Sprott Physical Uranium Trust $USD (Toronto Stock Exchange: U.UN) -17.5%. This performance, as Uranium bottomed completing retracement after hitting a 17 year high of $106/lb. in February 2024. Pursuant to tariff induced volatility, most analysts expect Uranium prices to recover through the balance of 2025.

The lead performing sub-category for Q1.2025 was Miners Leveraged ETFs +21.9% followed closely by Precious Metal Miners ETFs +16.8%, as precious metal miners began the process of closing the valuation gap with metals. Many analysts expect this revaluation of miners against underlying metals to continue with an ascendant market pursuant to an extended multi-year period of underinvestment in mineral exploration and development.

World Metal & Mining ETFs – Q1 2025

    METAL & MINING ETFs          
    231 ETFs (Exchange Traded Funds)   March 31, 2025      
            Q1  
Avg. ETF Size     # ETFs Assets ($USD) % of Assets % chg. 31.Dec.24
$USD M   METAL ETFs          
$3,738   Gold ETFs 70 $261,656,302,958 72.2% 10.3% $237,299,897,093
$1,449   Silver ETFs 19 $27,524,869,337 7.6% 9.9% $25,055,625,061
$1,404   Precious Metal ETFs 5 $7,021,627,574 1.9% 10.7% $6,343,357,787
$1,726   Uranium & Battery Metal ETFs 3 $5,179,404,356 1.4% -17.2% $6,252,946,698
$215   Platinum Group Metal ETFs 13 $2,799,131,598 0.8% 4.9% $2,669,538,357
$219   Base Metal ETFs 11 $2,412,095,464 0.7% 9.8% $2,196,965,871
      121 $306,593,431,287 84.6% 9.6% $279,818,330,867
               
$USD M   MINERS ETFs          
$1,205   Precious Metal Miners ETFs 24 $28,911,916,982 8.0% 16.8% $24,759,028,471
$430   Uranium & Battery Metal Miners ETFs 18 $7,748,200,685 2.1% -8.9% $8,506,195,114
$614   Base Metal Miners ETFs 10 $6,139,897,279 1.7% 1.6% $6,044,367,522
      52 $42,800,014,947 11.8% 8.9% $39,309,591,107
               
$USD M   HEDGED & LEVERAGED METAL ETFs          
$442   Currency Hedged Metal ETFs 22 $9,734,663,061 2.7% 11.0% $8,770,198,534
$66   Metals Leveraged ETFs 28 $1,848,571,058 0.5% 4.5% $1,768,501,640
$182   Miners Leveraged ETFs 8 $1,453,629,038 0.4% 21.9% $1,192,957,821
      58 $13,036,863,157 3.6% 12.6% $11,580,320,948
               
      231 $362,430,309,391 100.0% 9.6% $330,708,242,922

Fully ~ 84.6% of Assets in Metal & Mining ETFs are Physical Metal ETFs. A further ~ 11.8% of Assets are Mining Company ETFs and a final ~ 3.6% of Assets are Hedged or Leveraged ETFs.

Physical Metal ETFs make up the majority (~ 84.6%) of World Metal & Mining ETF (231) Assets

70 Gold ETFs make up the vast majority of Physical Metal ETF Assets (~ 85%). 19 Silver ETFs make up a further ~ 9% of Assets.
Gold ETFs make up the majority (~ 85%) of Physical Metal ETF (121) Assets

Avg. Size     # ETFs   Assets ($USD)   % of Assets
$USD M   EXCHANGE          
$4,184   NYSE Arca 49   $205,009,477,792   56.5%
$1,299   London Stock Exchange 56   $72,731,193,383   20.0%
$2,857   Deutsche Börse Xetra 7   $19,995,959,704   5.5%
$443   Toronto Stock Exchange 34   $15,045,252,136   4.1%
$1,469   SIX Swiss Exchange 10   $14,685,778,398   4.0%
$5,874   Euronext Paris 1   $5,874,264,891   1.6%
$661   Shanghai Stock Exchange 8   $5,286,277,212   1.5%
$794   Tokyo Stock Exchange 5   $3,968,958,318   1.1%
$346   Bombay Stock Exchange 11   $3,800,579,325   1.0%
$539   Shenzhen Stock Exchange 7   $3,771,920,196   1.0%
$531   National Stock Exchange of India 7   $3,715,320,495   1.0%
$676   CBOE BZX Exchange 3   $2,029,083,262   0.6%
$796   Johannesburg Stock Exchange 2   $1,591,568,507   0.4%
$142   Nasdaq Stock Market 11   $1,559,339,656   0.4%
$411   New York Stock Exchange 3   $1,234,241,073   0.3%
$284   Australian Securities Exchange 3   $852,863,066   0.2%
$273   Borsa Istanbul 2   $546,532,597   0.2%
$128   Borsa Italiana 4   $512,363,381   0.1%
$158   Deutsche Boerse AG 2   $315,266,566   0.1%
$112   Hong Kong Exchanges & Clearing 2   $224,714,009   0.1%
$56   Euronext Amsterdam 3   $168,833,115   0.0%
$25   Bursa Malaysia 1   $24,596,006   0.0%
      231 $362,944,383,088 100.0%
~ 56.5% of World Metal & Mining ETF Assets trade on NYSE Arca Exchange

currency symbol code units FX rate        
               
  USD   1.00        
Swiss Franc SFr CHF SFr / $USD 0.88        
Euro  € EUR € / $USD 0.92        
Mexican Peso  $ MXN $ / $USD 20.48        
Japanese Yen  ¥ JPY ¥ / $USD 149.72        
Pound Sterling  £ GBP £ / $USD 0.77        
Canadian Dollar  $ CAD $ / $USD 1.44        
Australian Dollar  $ AUD $ / $USD 1.60        
Rupees Indian Rupee  ₹ INR ₹ / $USD 85.47 1 Core = 10M Rupees, 1 lakh = 100K Rupees       
Chinese Yuan  ¥ CNY ¥ / $USD 7.26        
South African Rand  R ZAR R / $USD 18.32        
Hong Kong Dollar  HK$ HKD HK$ / $USD 7.78        
Malaysian Ringgit  RM MYR RM / $USD 4.44        
Turkish Lira  ₺ TRY ₺ / $USD 37.92        


Live real-time prices and a complete list of ETFs, ETCs and Exchange Traded Trusts traded on all Exchanges and across all transaction currencies can be reviewed at: https://mineralfunds.com

Data Fields Including: ISIN, Bloomberg, Reuters, SEDOL, LEI, WKN, CUSIP numbers and symbols, Management Fees, Total MERs, Web Pages, All Exchange Listings and Outstanding Shares for ETFs, ETCs and Exchange Traded Trusts are available to Substack subscribers only.


STAY IN TOUCH WITH MINERALFUNDS


Resource World Magazine Inc. has prepared this editorial for general information purposes only and should not be considered a solicitation to buy or sell securities in the companies discussed herein. The information provided has been derived from sources believed to be reliable but cannot be guaranteed. This editorial does not take into account the readers investment criteria, investment expertise, financial condition, or financial goals of individual recipients and other concerns such as jurisdictional and/or legal restrictions that may exist for certain persons. Recipients should rely on their own due diligence and seek their own professional advice before investing.

Share this article

NexGold Announces Closing of C$10 Million Bought Deal Private Placement


NexGold Announces Closing of C$10 Million Bought Deal Private Placement – Toronto Stock Exchange News Today – EIN Presswire




















Trusted News Since 1995

A service for global professionals
·
Wednesday, April 9, 2025

·
801,619,763
Articles


·
3+ Million Readers

News Monitoring and Press Release Distribution Tools

News Topics

Newsletters

Press Releases

Events & Conferences

RSS Feeds

Other Services

Questions?




Copyright © 2019. TSX Stocks
All Rights Reserved