Category: Canada

Trevali to close Burkina Faso Perkoa zinc mine after deadly flood

Men work during a rescue operation inside Perkoa mine where water is still being pumped out, four weeks after a flood trapped eight miners inside the galleries, in Perkoa, Burkina Faso, May 13, 2022. REUTERS / Anne Mimault/File Photo

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OUAGADOUGOU, Sept 23 (Reuters) – Canadian mining firm Trevali will close its Perkoa zinc mine in Burkina Faso, a company official told Reuters on Friday, following a flood at the mine in April that killed eight workers.

The miners drowned in the underground passages of the mine in Sanguie province after unexpected torrential rain during the West African country’s dry season.

The mine, one of Trevali’s three main operating assets, has been closed since.

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“The funds still available…are insufficient to complete the rehabilitation of the mine,” said Ditil Moussa Palenfo, country director of Nantou Mining, the Trevali entity that owns Perkoa.

“Funds are barely sufficient to cover severance pay for terminated employees.”

A court in Burkina Faso last week handed out suspended sentences to two executives after finding them guilty of involuntary manslaughter for the flood disaster.

That came just weeks after the company announced it was halting trading on the Toronto Stock Exchange.

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Reporting by Anne Mimault, writing by Edward McAllister, editing by Chris Reese and Josie Kao

Our Standards: The Thomson Reuters Trust Principles.

Moscow Exchange drafting bill on digital financial assets and securities trading: Report

The Moscow Exchange (MOEX) is drafting a bill to allow trading in digital financial assets (DFAs) and securities based on them, according to a report in the Russian press. The stock exchange is writing the bill on the behalf of the Russian Central Bank, which does not have the power to introduce legislation, Vedomosti newspaper reported on Thursday. 

Speaking at a banking conference, MOEX supervisory board chair Sergei Shvetsov said the bill in preparation foresees trading in both DFAs and DFA certificates that would trade like securities. “The exchange and its subsidiaries will apply to the regulator and I hope that they will receive the status of exchange operators” to trade in DFAs, Shvetsov said. He added:

“We want the market to make its own choice between blockchain accounting and depositary accounting, and if the law is passed, Russian depositories will be able to hold DFAs in their accounts on the blockchain — as soon as the client needs the underlying asset, they redeem the certificate and receive the asset in their account on the blockchain.”

Lack of familiarity is an impediment to distributed ledger technology in Russia, according to Shvetsov. “When you don’t know who to call and who to sue, many people don’t want to participate,” he said, but “It’s a blank sheet that we can draw whatever we want on, according to the needs of the economy and investors.”

Related: Drawbacks of centralization: Moscow Stock Exchange remains offline amid ongoing Russo-Ukrainian war

Shvetsov said that the bill is currently under review by the Russian Central Bank. State Duma finance committee chair and head of the Russian Banking Association Anatoly Aksakov suggested in July that MOEX become a crypto exchange, following the examples of the Toronto Stock Exchange and the Deutsche Boerse.

A MOEX spokesman said in August that the exchange expects to be permitted to trade DFAs. “It’s in the interests of our clients,” MOEX International managing director of strategy Artem Zheleznov said.

Eastern Platinum Limited Announces Finance Facility Agreement with Investec Bank Limited Completed

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Vancouver, British Columbia–(Newsfile Corp. – September 23, 2022) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) (“Eastplats” or the “Company“) is pleased to announce it has signed a finance facility agreement with Investec Bank Limited (“Investec“), which will be used for working capital purposes and funding the restart of the Zandfontein underground section of its flagship Crocodile River Mine, located near Brits, South Africa. Investec is a leading South African international banking and wealth management group.

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Highlights of the key terms of the finance facility include:

  • Renewable 12-month revolving commodity finance facility secured by platinum group metal (“PGM“) production from the tailings storage facility at the Crocodile River Mine.
  • Indicative rate on financing – 3 month Johannesburg Interbank Average Rate (“JIBAR“) + 150 basis points. The interest rate is subject to the credit quality of the PGM off-taker on an annual basis.
  • Immediate pay-out to the Company on the PGM concentrate delivery date.
  • The maximum size of the credit facility is R150 million (C$11.3 million).
  • Guaranteed prices through a fixed-price swap hedge overlay on platinum, palladium, rhodium, and gold (4E) minerals.

Wanjin Yang, Chief Executive Officer and President of the Company stated, “We thank Investec for its support and commitment to Eastplats. We look forward to working with Investec as we restart the Zandfontein underground section and develop our eastern limb projects. This facility is a result of the hard work of our respective teams over the past several months.”

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The finance facility agreement has been filed under the Company’s profile on SEDAR at www.sedar.com.

About Investec

Investec partners with private, institutional, and corporate clients, offering international banking, investment, and wealth management services in two principal markets, South Africa and the United Kingdom, as well as certain other countries. The group was established in 1974 and currently has approximately 8,200+ employees. Investec has a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. Investec’s current market capitalization is approximately £3 billion.

About Eastern Platinum Limited

Eastplats owns directly and indirectly a number of platinum group metal (“PGM“) and chrome assets in the Republic of South Africa. All of the Company’s properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world’s PGM-bearing ore.

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Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource to produce PGM and chrome concentrates from the Barplats Zandfontein tailings dam.

For further information, please contact:

EASTERN PLATINUM LIMITED
Wylie Hui, Chief Financial Officer and Corporate Secretary
whui@eastplats.com (email)
(604) 800-8200 (phone)

Cautionary Statement Regarding Forward-Looking Information

This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements“) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “will”, “plan”, “intends”, “may”, “could”, “expects”, “anticipates” and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company’s most recent Annual Information Form available under the Company’s profile on www.sedar.com.

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In particular, this press release contains, without limitation, forward-looking statements pertaining to: the use of proceeds from the finance facility, and successful restart of the Zandfontein underground and development of eastern limb projects. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

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All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the “Cautionary Statement on Forward-Looking Information” section contained in the Company’s most recent Management’s Discussion and Analysis available under the Company’s profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/138288

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Spiros Margaris and CARL hedge fund platform partner to bring all accredited investors a better hedge fund experience


Spiros Margaris and CARL hedge fund platform partner to bring all accredited investors a better hedge fund experience – Toronto Stock Exchange News Today – EIN Presswire
























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TSX falls by most in 3 months, C$ slides as oil rout weighs

By Fergal Smith

TORONTO (Reuters) – Canada’s resource-heavy main stock index posted its biggest decline in more than three months on Friday and the Canadian dollar extended its recent decline as oil prices tumbled and investors grew more worried about the global economic outlook.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 521.70 points, or 2.8%, at 18,480.98, its biggest decline since June 16 and its lowest closing level in more than two months.

Wall Street’s main indexes also closed sharply lower but not as much as the Toronto market.[.N/C]

For the week, the TSX lost 4.7% as worries about the economic impact of central bank tightening overshadowed domestic data showing an easing of inflation pressures. The index has fallen about 16% from its record closing high in March.

“It’s the realization that we are seeing a general slowdown in the global economy,” said Philip Petursson, chief investment strategist at IG Wealth Management. “That’s working its way into softer commodity prices.”

Oil prices settled down 5.7% at $78.74 a barrel, an eight-month low, as the U.S. dollar notched its strongest level in more than two decades, while copper and gold prices fell.

The Toronto market’s energy group tumbled 7.8%, while the materials group, which includes precious and base metals miners and fertilizer companies, was down 4.5%. Together, those two groups account for nearly 30% of the TSX’s weighting.

Domestic data showed that retail sales fell 2.5% in July, which was more than expected, indicating interest rate increases by the Bank of Canada are slowing consumer spending.

That added to pressure on the Canadian dollar. It was down 0.7% at 1.3580 to the greenback, or 73.64 U.S. cents, after touching its weakest intraday level since July 2020 at 1.3612.

Meanwhile, Canadian bond yields eased across much of a flatter curve. The 10-year was down 4.8 basis points at 3.080%, unraveling some of the upswing since June.

That move higher for yields in recent weeks could make bonds “an attractive opportunity over the course of the next 12 to 36 months,” Petursson said. “While yields can continue to move up you are seeing a coupon that will at least absorb some of that.”

(Reporting by Fergal Smith; Additional reporting by Susan Mathew in Bengaluru; Editing by David Gregorio and Marguerita Choy)

Global market storm gathers force as virtually no asset class is spared

TSX, S&P 500 are getting hammered as sell-off turns ugly

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Gobal markets came under more pressure Friday as the mood over the economic outlook around the world turned sour. Equities, currencies, other asset classes – virtually nothing has been spared in the economic cyclone that has been mounting over the past few weeks. Here’s what economists and analysts have their eyes on during this trading day:

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Markets in Turmoil

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Indices are down across the board in Friday trading. The S&P TSX composite index slumped over 2.5 per cent in the first hour to 18,516 as  energy shares fell to their lowest in over two months and oil prices gave up 6 per cent.

The U.S. markets fared no better.  The S&P 500 fell about 1.7 per cent to 3,692 by 10:40 a.m. ET and the Dow Jones slipped 1.5 per cent to 29,616. Goldman Sachs Group Inc. cut its target for the S&P 500 Index from 4,300 to 3,600 by the end of the year, pointing to a shift in interest rate expectations and how they would weigh on equities.

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Friday’s turmoil began in European and Asian markets.

“There is no appetite for risk this Friday morning, as stocks across Europe drop as much as three per cent, led by the FTSE MIB,” BMO economists Jennifer Lee and Shelly Kaushik said in their morning note. “Asia was not spared, as the region broadly sold off, with the Hang Seng down over one per cent, while the CSI 300 kept its losses to 0.3 per cent.”

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Bank of America Corp. strategists are pointing to a “cash is king” attitude among investors who are showing the most pessimistic attitude towards the markets since the 2008 global financial crisis. Cash inflows hit US$30.3 billion as global equity funds outflows went to US$7.8 billion, bonds lost US$6.9 billion, and gold investment dropped US$400 million during the week of Sept. 21, according to the bank.

Canadian Retail Slump

The latest retail data from Canada was also disappointing Friday, with sales falling 2.5 per cent in July as lower gasoline prices contributed to the decline. While Canadians were saving money on fuel, the cash windfall did not go to other retailers, said Desjardins managing director and head of macro strategy Royce Mendes said in a note after the data. Mendes also said the modest rebound of 0.4 per cent in nominal retail sales that Statistics Canada estimates for August may point to higher volumes.

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“That said, the trend is clear, consumers are pulling back on spending,” Mendes said. “The slowdown in consumption is exactly in line with what the Bank of Canada is trying to engineer with its rate increases.”

The Bank of Canada has been aiming to bring high demand back into balance with constrained supply by undertaking an aggressive rate hiking cycle this year, that has so far raised the policy rate three percentage points.

Pound plunges

Across the pond, the British pound fell two per cent to crash below US$1.11 for the first time since 1985, adding to pressures the currency faced earlier in the week. The plunge came as newly appointed U.K. Prime Minister Liz Truss introduced the country’s biggest tax cuts since the early 1970s.

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Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto, said that recent weak retail data exacerbated fears of a deep and prolonged recession, contributing to the pound’s grief.

The Bank of England raised its key interest rate 50 basis points to 2.25 per cent this week, which Schamotta noted, before the decision, would help widen interest rate differentials against the pound.

  1. Equity risk premiums typically expand more than they have in this market downturn, writes David Rosenberg.

    David Rosenberg: Slumping equity risk premiums mean there is more bear market to come

  2. Investors have been told private equity funds produce superior returns while providing portfolio diversification, but they are hard-pressed to actually deliver.

    Noah Solomon: Investors should think again if they believe alternatives are a portfolio panacea

Don’t Fight the Fed. Just Don’t

U.S. Federal Reserve Chairman Jerome Powell made good on his Jackson Hole comments in late August that the central bank was willing to trade off economic growth if it meant stamping out decades-high inflation. The Fed’s 75-basis-point hike earlier this week showed that Powell wasn’t bluffing, a detail economist David Rosenberg of Rosenberg Research & Associates Inc. was quick to pick up on.

“What part of ‘don’t fight the Fed’ do markets not understand?” Rosenberg wondered in his Friday morning note to clients. “Chairman Powell’s message is clear: the Fed means it this time, and it’s not pussyfooting or fooling/messing around.”

“Whether the Fed is ultimately right or wrong in what they are doing, they control the ‘magic lever,’ thus investors should be prepared for further weakness economically and markets-wise,” Rosenberg added.

• Email: shughes@postmedia.com | Twitter:

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New fund-raising product appropriate for junior miners, says JSE

JOHANNESBURG (miningweekly.com) – The JSE has a new product that is appropriate for fund-raising by junior mining companies, JSE origination and deals head Sam Mokorosi said on Friday.

Mokorosi, who was speaking at Minerals Council South Africa’s Junior and Emerging Miners Desk webinar, highlighted the new product against the background of the JSE wanting to reverse the low number of junior mining listings on the exchange, about which it was very concerned. (Also watch attached Creamer Media video.)

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He highlighted the new product in response to an observation of Council for Geosciences CEO Mosa Mabuza that although South African mining’s future was junior, the country had not made it easy for juniors to list on the stock exchange.

“It would be incredible if we can begin to see IPOs in our very own JSE that will be led by junior miners, which would also be based on the quality of the asset that we would be able to delineate in the next weeks, months and years,” said Mabuza.

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With capital formation in the unlisted, private market growing tremendously since the global financial crisis of 2008, many exchanges around the world, including Nasdaq private markets, have moved into helping unlisted companies to raise capital.

“We have a focus on the SMME ecosystem and how we as the JSE can assist with capital formation within that world,” said Mokorosi.

The new JSE private placements platform currently has 15 companies raising R3-billion worth of capital on it.

“We also have investors on the platform, including large institutions like Sanlam, Old Mutual and Momentum, as well as private equity funds, venture capital, BEE investment companies and high net worth investors.

“We’ve created this ecosystem that says please come on to JSE private placement for your fund raise if the listing route is not appropriate for you at this stage,” Mokorosi told the webinar covered by Mining Weekly.

The process has been designed to be as simple as possible and enable the fund-raise process take place as quickly as possible.

“You as a junior miner would come to us, we would understand what you’re looking to raise money for, do all the FICA checks and then put the fund raise on to our platform.

“We do have a set-up fee that is somewhere between R20 000 and R100 000, depending on how much you are raising. Within paying that set-up fee, the deal goes live and within two weeks we’ll put you in front of quantified investors that understand your deal,” Mokorosi added.

This unlocks an opportunity for the JSE to enter the private equity and debt market in South Africa and across the continent.

The Junior and Emerging Miners Desk programme in the Minerals Council represents 38 junior and midtier producers as well as exploration/development companies.

In addition, the desk works closely with mining associations, particularly the South African Diamond Producers Organisation (Sadpo) and the Clay Brick Association.

Junior mining and exploration have been identified as key components in developing and driving the overall mining sector.

The release of the exploration strategy and implementation plan by the Department of Mineral Resources and Energy in April spoke to the need for exploration to be increased to 5% of all global exploration dollars within the next five-year period.

Chaired by Junior and Emerging Miners Desk head Grant Mitchell, webinar panellists and speakers included Orion Minerals and junior desk chairperson Errol Smart, Industrial Development Corporation mining industry champion Kevin Hodges, Sadpo CEO Yamkela Makupula, Trimble natural resource MD Bill Feast, Lethabo Exploration CEO Mandy Malebe, and ChromTech CEO Jono Gay.

The Toronto Stock Exchange has 1 600 small-cap mining companies and the Sydney Stock Exchange 600 compared with the JSE’s miniscule sub-ten.

TSX futures slide over 1%, hit by global risk aversion

(Reuters) – Futures tracking Canada’s main stock index fell more than 1% on Friday as investors retreated from riskier assets on worries about the impact of aggressive monetary policy tightening by central banks around the world.

Futures on the S&P/TSX index were down 1.5% by 7:39 a.m. ET, with a global stocks gauge at a two-year low on fears that bigger interest rate rises are in the offing to tame inflation. [MKTS/GLOB]

Data at 8:30 a.m. ET is expected to show Canada’s retail sales fell 2% in July, compared with June, as elevated inflationary pressures and higher borrowing costs weigh on the economy.

The Bank of Canada is scheduled to meet next month, with traders almost fully pricing in the odds of a 50-basis-point interest rate hike.

The Toronto Stock Exchange’s S&P/TSX composite index closed down about 1% at a two-month low on Thursday. The benchmark is set for its fifth weekly decline in six.

Energy stocks could come under pressure as prices of oil, one of Canada’s top exports, fell more than 3% on fears over hit to demand from a global economic slowdown.

Gold and silver prices were also dented by a strong dollar. [O/R] [GOL/]

Dow e-minis were down 365 points, or 1.21%, while S&P 500 e-minis were down 50 points, or 1.33%, and Nasdaq 100 e-minis were down 166.75 points, or 1.44%. [.N]

In company news, Link Administration Holdings Ltd’s A$2.47 billion ($1.63 billion) proposed deal to be acquired by Canada’s Dye & Durham fell through after a local court denied approving the offer citing failure to meet key conditions.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

The Vice Fund (symbol: VICEX) Offers Exposure to Military Defense Stocks


The Vice Fund (symbol: VICEX) Offers Exposure to Military Defense Stocks – Toronto Stock Exchange News Today – EIN Presswire
























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Investment office of Scots entrepreneur Sir Brian Souter seals Canadian disposal

The private equity-focused firm has inked an agreement to sell Stone Technologies Group, which specialises in “circular” IT, to Toronto Stock Exchange-listed Converge Technology Solutions Corp., a software-enabled IT and cloud services provider. The transaction, terms of which were not disclosed, remains subject to regulatory approval.

Stone is described as having served the UK’s public and private sectors for more than 30 years, helping thousands of organisations to adapt and thrive in a changing technology landscape, including the delivery of personalised services, and providing “reliable” IT support. It aims to make a “true and lasting” impact on the way technology is sold, providing a full circular procurement cycle for clients for the good of the environment and future generations.

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Sir Brian Souter makes massive £109m donation as charities experience ‘perfect s…

Souter acquired a majority stake in Stone, whose HQ is pictured, in 2019. Picture: contributed.Souter acquired a majority stake in Stone, whose HQ is pictured, in 2019. Picture: contributed.
Souter acquired a majority stake in Stone, whose HQ is pictured, in 2019. Picture: contributed.

Souter, which says it has invested more than £500 million in 70-plus unquoted companies, acquired a majority stake in Stone in 2019, investing alongside its management team and a syndicate of investors managed by private equity house RJD Partners.

It added that since acquisition, Stone has flourished and expanded its range of products, services, and solutions, including the rollout of the Stone 360 IT recycling app, which is billed as making management of end-of-life technology simple, ensuring responsible e-waste disposal, and allowing customers to make progress towards their sustainability goals.

Lincoln International is acting as financial adviser for Stone’s shareholders. Dickson Minto is legal adviser for Souter Investments and RJD Partners, with Freeths representing management.

Stone chief executive Simon Harbridge commented: “In 2019 we were looking for the right partner to support the next stage of Stone’s development. It has been a pleasure to work with Sir Brian, John, and the Souter team as well as David MacLellan and RJD Partners.

“The emergence of Covid on the heels of Souter’s investment confirmed our decision to partner with them, with pragmatic advice and considered support the norm, allowing us to focus on our successful growth and transformation strategy. We look forward to continuing our exciting journey as part of the Converge family of businesses.”

Sustainability

John Berthinussen, managing director at Souter Investments, said: “We have really enjoyed working alongside Simon and his team, who have shown real market leadership and a true commitment to sustainability and tackling the problem of e-waste.

“Stone has grown very strongly, marrying a focus on providing truly innovative and market leading products, services, and solutions with outstanding customer service, all things that resonate with its clients. We look forward to seeing that continue in partnership with Converge, and wish Simon and his team every success in the future.”

The deal follows Souter’s recent sale of Duke Street-backed specialist care provider Voyage Care to infrastructure investment manager Wren House, as well as the stock market flotation of Ashtead Technologies, a co-investment with Buckthorn Partners, which provides subsea equipment rental services, high-end technologies, and support services to the global offshore energy sector.

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