Category: Canada

Inside Chrystia Freeland’s surprising resignation — and the fallout that has Justin Trudeau fighting for his political life

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Prime Minister Justin Trudeau is fighting once again for his political life. Behind closed doors. 

At an emergency meeting Monday evening — called after Chrystia Freeland, Trudeau’s now former top deputy and one-time “minister of everything” quit as finance minister — the prime minister came face to face with Freeland along with an angry and bewildered caucus before he planned to go explain the crisis to the Liberal party’s top donors.

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Barrick Gold threatens to suspend Mali operations over blocked exports

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Barrick Gold will suspend operations in Mali if gold shipments continue to be blocked, the company said on Monday as it struggles to reach agreement with authorities on a new mining code in the West African country.

Conditions at the miner’s Loulo-Gounkoto complex have “deteriorated significantly”, Barrick said, adding that employees have been imprisoned without cause and shipments of bullion have been blocked.

“If shipments remain suspended, Barrick will be compelled to suspend operations, further impacting the viability of this critical economic driver for Mali,” the company said.

Shares of Barrick Gold were trading down by 1.8% at the Toronto Stock Exchange at 12.13pm ET (5.30pm GMT).

A spokesperson for Mali’s mines ministry did not immediately respond to a request for comment on the matter. The ministry has previously not commented on the arrests of mining executives in the country.

The world’s second-largest gold miner by volume has been negotiating with authorities in Mali for a new mining code to govern its operations in the country for about a year. Barrick said those talks have been “unsuccessful”.

In a research note, Jefferies said the market was already expecting challenging negotiations for the company in Mali.

Negotiations stalled even after Barrick made “significant concessions”, which the government rejected, Barrick said.

A senior official at the Ministry of Mines told Reuters “negotiations are continuing, they’re ongoing”.

The government wants Barrick’s mine in the country to be governed under new mining rules adopted in 2023, Barrick said, but the law has no application to existing operations.

Mali authorities have arrested staff from Australia’s Resolute Mining, including its CEO Terence Holohan, who were released after the company agreed to pay $160-million to resolve a tax dispute. Executives from Barrick have also been detained and the government has an arrest warrant for Barrick CEO Mark Bristow.

Barrick said the charges against its staff are unfounded and called the arrest warrant against Bristow “illegitimate”.

“Recent developments further erode investor confidence in Mali’s mining sector and will deter future investment,” the company said.

CAPREIT Provides Update on MHC and European Dispositions, Declares Special Distribution and December 2024 Distribution

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GlobeNewswire

Published Dec 16, 2024  •  6 minute read

This news release constitutes a “designated news release” for the purposes of CAPREIT’s prospectus supplement dated February 22, 2024, to its short form base shelf prospectus dated May 9, 2023.

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TORONTO, Dec. 16, 2024 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that is has completed, in part, its previously announced sale of its manufactured home community (“MHC”) portfolio, which now operates as Compass Communities. CAPREIT has completed the disposition of 11,605 residential lots for a gross purchase price of $715.0 million (all amounts disclosed herein exclude transaction costs and other customary adjustments). The purchase price was partially satisfied through an interest-only vendor take-back loan of $140.0 million, bearing interest at a rate of 3.0% per annum for a five-year term, with $575.0 million satisfied in cash. The sale of the remaining 533 lots is expected to be completed in the first quarter of 2025 for a gross purchase price of $25.0 million, to be satisfied in cash.

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CAPREIT also announced that certain subsidiaries of European Residential Real Estate Investment Trust (TSX:ERE.UN) (“ERES”) completed its previously announced sale of 3,179 residential suites in the Netherlands for aggregate proceeds, net of certain adjustments, of approximately $1.1 billion (presented in Canadian dollars based on a Euro foreign exchange rate of 1.49 on December 13, 2024, applicable throughout this press release). ERES also declared a special cash distribution of an estimated $1.49 per ERES Unit and ERES Limited Partnership exchangeable Class B LP Unit (together, the “ERES Units”), payable to holders of the ERES Units of record at the close of business on December 23, 2024, with payment on December 31, 2024 (the “ERES
Special Distribution”). Based on CAPREIT’s effective interest in ERES of approximately 65%, CAPREIT expects to receive approximately $227 million from the ERES Special Distribution. Further details have been provided by ERES in its press release dated December 16, 2024.

CAPREIT intends to utilize the net proceeds from the sale of its MHC sites and the ERES Special Distribution: (1) to repay certain amounts drawn on its revolving credit facility; (2) to fund future acquisitions of on-strategy rental properties in Canada; and (3) for general business purposes, which may include capital expenditures, debt repayment and the repurchase of CAPREIT’s Trust Units under its normal course issuer bid.

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CAPREIT Special Distribution

CAPREIT further announced that it has declared a special non-cash distribution of $1.18 per Unit, payable in Units of CAPREIT (the “Additional Units”) on December 31, 2024 to Unitholders of record at the close of business on December 31, 2024 (the “CAPREIT
Special Distribution”). The CAPREIT Special Distribution is principally being made to distribute to Unitholders a portion of the net capital gains of CAPREIT realized during the twelve-month period ending December 31, 2024, and will therefore be in the form of a capital gain to Unitholders for Canadian income tax purposes.

Taxable Canadian-resident Unitholders will generally be required to include their proportionate share of CAPREIT’s income and net taxable capital gain, as allocated and designated by CAPREIT, in computing their respective income for the tax year that includes the year end of CAPREIT (i.e., December 31, 2024).

The non-cash CAPREIT Special Distribution will be paid at the close of business on December 31, 2024 through the issuance of the Additional Units. The number of Additional Units to be issued will be based on the dollar amount of the CAPREIT Special Distribution divided by the closing price of the Units on the Toronto Stock Exchange on December 31, 2024.

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Immediately after the payment of the CAPREIT Special Distribution, the issued and outstanding Units of CAPREIT will be consolidated such that the aggregate number of issued and outstanding Units will be the same as immediately before the CAPREIT Special Distribution. For Unitholders who are residents of Canada for Canadian federal income tax purposes, the amount of the CAPREIT Special Distribution will increase the adjusted cost base of Unitholders’ consolidated Units. Unitholders who are not resident in Canada for Canadian federal income tax purposes may be subject to applicable withholding taxes in connection with the payment of the CAPREIT Special Distribution.

CAPREIT cautions that the foregoing comments are not intended to be, and should not be construed as, legal or tax advice to any Unitholder. CAPREIT recommends that Unitholders consult their own tax advisors regarding the income tax consequences to them of this anticipated CAPREIT Special Distribution and related Unit consolidation.

December 2024 Monthly Distribution

CAPREIT announced today its December 2024 monthly distribution in the amount of $0.125 per Unit (or $1.50 on an annualized basis). The December 2024 distribution will be payable on January 15, 2025 to Unitholders of record at the close of business on December 31, 2024.

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ABOUT CAPREIT
CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at September 30, 2024, CAPREIT owns approximately 63,400 residential apartment suites, townhomes and manufactured home community sites, including approximately 15,400 suites and sites classified as assets held for sale, that are well-located across Canada and the Netherlands, with a total fair value of approximately $16.9 billion, including approximately $1.9 billion of assets held for sale. For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosure which can be found under our profile at www.sedarplus.ca.
                
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws which reflect CAPREIT’s current expectations and projections about future results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “consider”, “should”, “plans”, “predict”, “estimate”, “forward”, “potential”, “could”, “likely”, “approximately”, “scheduled”, “forecast”, “variation” or “continue”, or similar expressions suggesting future outcomes or events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Any number of factors could cause actual results to differ materially from these forward-looking statements. Although CAPREIT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect, including with regards to the expected completion and timing of the pending transactions, the intended use of proceeds from the transactions, the ERES Special Distribution and timing of payment, and the CAPREIT Special Distribution and timing of payment. Accordingly, readers should not place undue reliance on forward-looking statements.

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Forward looking statements in this press release are subject to certain risks and uncertainties, many of which are beyond CAPREIT’s control, which could result in actual results differing materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described under the heading “Risks and Uncertainties” in CAPREIT’s 2023 Annual Report and under the heading “Risk Factors” in CAPREIT’s Annual Information Form for the year ended December 31, 2023, each of which is available under CAPREIT’s profile on SEDAR+ at www.sedarplus.ca.

Except as specifically required by applicable Canadian securities law, CAPREIT does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements should not be relied upon as representing CAPREIT’s views as of any date subsequent to the date of this press release.

For more information, please contact:  
   
CAPREIT CAPREIT
Dr. Gina Parvaneh Cody Mr. Mark Kenney
Chair of the Board of Trustees President & Chief Executive Officer
(437) 219-1765 (416) 861-9404
   
CAPREIT CAPREIT
Mr. Stephen Co Mr. Julian Schonfeldt
Chief Financial Officer Chief Investment Officer
(416) 306-3009 (647) 535-2544


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The morning catch up: ASX to open softer; record-breaking…

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This morning ASX 200 futures were trading 14 points lower, down 0.17%, suggesting a subdued start for the Australian markets.

Big day for tech on Wall Street

Not so on Wall Street overnight, where a pre-Christmas rally resumed after Friday’s pause.

The Nasdaq climbed 1.6% to another record close, fuelled by gains in – you guessed it – mega-cap tech stocks, while the S&P 500 added 0.6%. The Dow Jones traded flat.

Key growth stocks drove US market gains, with Alphabet rising more than 4% and Tesla surging 5.2%.

The Nasdaq’s record-breaking session was also powered by a 1.24% rise to 20,173, led by a standout performance from Broadcom. The chipmaker surged 11.2% following Bernstein’s bullish price target, citing its pivotal role in AI advancements.

Broadcom’s rally lifted the semiconductor sector, with Micron and Teradyne also gaining more than 5%.

News of MicroStrategy’s likely inclusion in the Nasdaq 100 also boosted sentiment around the cryptocurrency sector, about which more below.

Trump’s Bitcoin economy

Bitcoin made headlines, briefly hitting a record high above US$107,000. The crypto’s fortunes were boosted after President-elect Donald Trump suggested the US should create crypto reserves similar to its strategic oil reserves.

Speaking on CNBC, Trump said, “Yeah, I think so,” when asked if such a reserve was a good idea. He added, “We’re gonna do something great with crypto because we don’t want China or anybody else … embracing it, and we want to be the head.”

Bitcoin has surged more than 50% since Trump’s election win and is up nearly 200% for the year.

“We’re in blue sky territory here,” IG market analyst Tony Sycamore told Reuters. “The pullback that a lot of people were waiting for just didn’t happen, because now we’ve got this news.”

Analysts suggest US$110,000 could be the next target for the cryptocurrency.

Governments are slowly increasing their Bitcoin holdings. Crypto aggregator CoinGecko estimates 2.2% of Bitcoin’s supply, or about US$50 billion, is held by governments through purchases, donations or asset seizures.

The US alone holds more than 200,000 Bitcoin, valued at some US$22 billion, much of it acquired from the shutdown of the Silk Road marketplace in 2013.

Rate cut expected from Fed

The Federal Reserve is widely expected to cut interest rates by 25 basis points tomorrow, with market pricing showing a 99.1% likelihood of the move.

Analysts anticipate a “hawkish cut,” with the Fed signalling data dependence and fewer rate reductions in 2025.

In Europe, equity markets closed lower. France’s CAC 40 fell 0.7%, impacted by political uncertainty as a new Prime Minister took office. Germany’s DAX lost 0.5% after the Chancellor faced a no-confidence vote.

Commodities painted a mixed picture. Oil prices softened amid oversupply fears, while gold gained. Locally, yesterday’s rise in iron ore prices may offer some support to mining stocks today.

Market snapshot

  • ASX 200 futures: flat 8,256 points.
  • Australian dollar: flat at 63.63 US cents.
  • S&P 500: +0.5% at 6,082 points.
  • Nasdaq: +1.5% to 22,108 points.
  • FTSE: -0.5% to 8,300 points.
  • EuroStoxx: -0.4% to 510 points.
  • Spot gold: +0.2% to $US2,654/ounce.
  • Brent crude: -0.8% to $US73.89/barrel.
  • Iron ore: +0.8% to $US104.75/tonne.
  • Bitcoin: +4.9% to $US106,290.

Source: ABC

What’s happening in small caps?

  1. Astral Resources NL (ASX:AAR) has reported assay results for a 21-hole, 3,702-metre infill program at the Iris Deposit, part of the 100%-owned Mandilla Gold Project, 70 kilometres south of Kalgoorlie in WA.
  2. FireFly Metals Ltd (ASX:FFM) has commenced trading on the main board of the Toronto Stock Exchange (TSX) under the symbol FFM.
  3. Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) says the test pit mined during the Pilot Mining and Land Rehabilitation Program at its Kasiya Rutile-Graphite Project in Malawi has been successfully backfilled.
  4. Sprintex Ltd (ASX:SIX) has secured an A$17.5 million minimum order commitment from Air End Repair Ltd, contributing to a current total global minimum order value of A$30 million through recent exclusive distribution agreements in UK, Türkiye and India.
  5. Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has made progress across several work fronts associated with its re-focused strategy to deliver enduring cashflows built on the foundation Rafael Project, with partnering and gas/liquids offtake discussions underway.
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