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TOP NEWS
• Iamgold to buy Trelawney Mining for C$585 mln
The company agreed to buy Trelawney Mining and Exploration Inc for C$585.3 million in cash, to get access to the Cote Lake gold deposit in northern Ontario.
• Italy's 10-yr debt costs climb towards 6 pct at key sale
Italy's borrowing costs rose to 5.84 percent at a benchmark 10-year bond auction, their highest level since January, after a credit ratings cut for Spain overnight added to markets' concerns about the debt of weaker euro zone countries.
• Imax posts 1st-qtr profit
The company posted a net profit for the first quarter on a slew of blockbuster releases, as it continued to expand its global footprint.
• Procter & Gamble Q3 profit falls, sales rise
The household products maker posted a lower quarterly profit as the company took charges for its new restructuring plan and absorbed higher commodity costs.
• Agnico-Eagle profit lifted by gold price
The gold miner reported a 73 percent increase in its quarterly profit on Thursday, driven largely by gains in the price of bullion.
BEFORE THE BELL
Canada’s main stock index looked set to open lower as commodities fell, on spiralling fears over euro zone, after Spain’s credit rating was downgraded by two notches and Italian borrowing costs rose at the auction. With no economic data on the calendar, the index might take cues from first estimate of U.S. first-quarter GDP, which is expected to grow at a 2.5 percent annual rate, according to a Reuters poll. U.S. stock index futures pointed to a flat open. European shares edged up, while markets in Asia were largely low. The yen was firmer against the dollar helped by the Bank of Japan's decision to increase bond buying by 10 trillion yen.
STOCKS TO WATCH
Deals of the Day
• Iamgold Corp. (IMG). The gold miner will buy Trelawney Mining and Exploration Inc (TRR) for C$585.3 million, to expand its gold assets in northern Ontario. The offer of C$3.30 per share represents a premium of 42 percent over Trelawney's Thursday close on the Toronto Venture Exchange.
Results
• Agnico-Eagle Mines Ltd. (AEM). The gold miner reported a 73 percent increase in its quarterly profit on Thursday, driven largely by gains in the price of bullion. It reported first-quarter earnings of $78.5 million or 46 cents a share, up from $45.3 million, or 27 cents a share, a year earlier.
• Air Canada (ACa) (ACb). The airline warned on Thursday that its first-quarter results would be hurt by a C$120 million charge related to the creditor protection filing of its former maintenance unit Aveos. It expects to report quarterly earnings before interest, taxes, depreciation, amortization and aircraft rent of between C$170 million and C$180 million.
• CE Franklin Ltd. (CFT). The company reported first quarter earnings of 46 Canadian cents a share on revenue of C$160.3 million.
• IMAX Corp. (IMX). The company posted a net profit for the first quarter on a slew of blockbuster releases, as the company continued to expand its global footprint. Net income was $2.6 million, or 4 cents per share, compared with a net loss of $1.0 million, or 2 cents per share, a year ago.
• Inmet Mining Corp. (IMN). The base metal miner reported a 62 percent increase in quarterly profit on Thursday as higher copper production outweighed a drop in zinc output and lower metal prices. First-quarter net income, from continuing operations was C$96.1 million, or C$1.39 a share, up from a year-earlier adjusted profit of C$59.4 million, or 97 Canadian cents a share.
• Progressive Waste Solutions (BIN). The company’s quarterly profit fell, hurt by lower recycled fiber prices. Net income fell to $22.1 million, or 19 cents per share, from $23 million, or 19 cents per share, a year ago.
In Other News
• NiMin Energy Corp. (NNN). The oil and gas explorer said it would sell its assets in the San Joaquin Basin to Southern San Joaquin Production LLC for about $27 million in cash. NiMin said it will have about $70.3 million to $72.5 million to distribute to shareholders after paying off debts of about $52.6 million to $55.1 million.
• Pacific Rubiales Energy Corp. (PRE). Oil and gas company BPZ Resources Inc said it formed a joint venture with the company to develop and explore an offshore block in Peru. It will pay $150 million in cash and commit $185 million for BPZ's share of capital and exploratory expenditures in Block Z-1.
ANALYST RECOMMENDATIONS
• Air Canada (ACa). (ACb). Canaccord Genuity raises to C$6.50 from C$5.25, rating buy
• Exco Technologies (XTC). Canaccord genuity raises price target to C$6.25 from C$5.75
• Intact Financial (IFC). NBF cuts price target to C$70 from C$71
• Linamar (LNR). CIBC raises price target to C$25 from C$24.50, rating sector performer
• Lundin Mining (LUN). Canaccord Genuity ups price target to C$6.50 from C$6, rating buy
• Shoppers Drug Mart (SC). CIBC raises price target to C$44 from C$43
• TransAlta (TA). NBF cuts price target to C$16.50 from C$19, rating underperform; CIBC cuts price target to C$17.50 from C$21;rating sector underperformer
• TransForce (TFI). NBF raises to outperform from sector perform; NBF raises price target to C$22 from C$19.50
COMPANIES REPORTING RESULTS
(Estimates according to Thomson Reuters I/B/E/S)
• Capital Power Corp. (CPX). Expected to report Q1 earnings of 34 Canadian cents a share
• Canadian Utilities Ltd. (CU) Expected to report Q1 earnings of C$1.37 a share
• TransCanada Corp. (TRP). Expected to report Q1 earnings of 54 Canadian cents a share
CORPORATE EVENTS
08:30 Agnico Eagle Mines Ltd. (AEM). Q1 earnings conference call
08:30 Progressive Waste Solutions Ltd. (BIN). Q1 earnings conference call
08:30 Inmet Mining Corp. (IMN). Q1 earnings conference call
08:30 IMAX Corp. (IMX). Q1 earnings conference call
09:00 TransForce Inc. (TFI). Q1 earnings conference call
10:00 Torex Gold Resources Inc (TXG). Annual and special shareholder meeting
11:00 Agnico Eagle Mines Ltd. (AEM). Annual shareholder meeting
11:00 Canfor Corp. (CFP). Q1 earnings conference call
11:00 CE Franklin Ltd. (CFT). Q1 earnings conference call
12:00 TransCanada Corp. (TRP). Annual shareholder meeting
13:15 Canam Group Inc. (CAM). Q1 earnings conference call
14:00 Norbord Inc. (NBD). Q1 earnings conference call
14:30 Inmet Mining Corp (IMN). Annual shareholder meeting
15:00 Capital Power Corp (CPX). Annual shareholder meeting
15:00 TransCanada Corp. (TRP). Q1 earnings conference call
16:00 Hammond Power Solutions Inc. (HPSa). Q1 earnings conference call
EXDIVIDENDS
(Amount rounded off to two decimal places)
• Brookfield Asset Management Inc. (BAM). Amount $0.14
• Emera Inc. (EMA). Amount C$0.33
• Vitreous Glass Inc. (VCI). Amount C$0.06
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