Calgary-based Black Diamond Group rents out and sells temporary housing and offices.Marc Rimmer/The Globe and Mail
Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated through the morning.
Sherritt International Corp. Monday night released new reserve and resource estimates for its Ambatovy mining project in Madagascar, showing increased economically viable tonnage but lower nickel and cobalt ore grades. Shares of Sherritt slipped lower throughout today's session, closing at its low for the day, down 11.1 per cent at $3.10.
Sherritt said that Ambatovy's proven and probable reserve estimate has increased to 190.4 million tonnes of economically mineable ore, up 20.5 million tonnes or 12 per cent from the previous estimate done in 2011. Overall grades for proven and probable mineral reserves have decreased to 0.85 per cent nickel (from 0.94 per cent) and to 0.07 per cent cobalt (from 0.08).
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Black Diamond Group Ltd. provided an operational update "following recent commentary from industry participants," after its stock dropped almost 9 per cent on Monday.
"Despite moderate weakness in some sub-sectors of the oil sands accommodations market, Black Diamond's outlook remains consistent with previously disclosed information in the company's second-quarter 2014 financial results release. The company's forward-contracted revenue reached $174-million at the end of the second quarter of 2014. Notwithstanding the lack of final investment decisions on large projects such as major liquefied natural gas projects, the company's geographical and product line diversification is expected to result in ongoing, modest EBITDA growth in 2015."
"Black Diamond's oil sands accommodations assets are diversified across a number of customers and differing projects, with no single project accounting for more than 1,300 beds, and the Company's customers remain active in the areas it serves. Black Diamond's overall smaller project size compared to those often seen in large scale oil sands mining projects allows a managed approach to redeploying assets should projects reach completion. While management does not expect significant new project activity in the oil sands over the next several quarters, current contracted assets on-site will continue to deliver revenue and returns similar to historical levels."
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Bellatrix Exploration Ltd. announced that Grafton Energy Co I Ltd. has committed an additional $250-million towards further development of Bellatrix's underdeveloped land holdings.
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Jubilee Gold Exploration Ltd. says it has received approval from the TSX Venture Exchange for the capital reorganization previously announced on June 4, 2014. Jubilee has exercised its option to convert all outstanding common shares of the corporation to a new class of common shares on a 1-for-1 basis. The new shares will have the same characteristics as the previous shares prior to the addition of conversion and redemption features approved by shareholders at the annual and special meeting held on May 29, 2014.
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New Gold Inc. has announced the appointment of David Schummer as executive vice president and chief operating officer. Mr. Schummer spent 22 years at Newmont Mining Corporation, most recently as senior vice president of African operations. "We are delighted that David has joined the New Gold team," said executive chairman Randall Oliphant. "With his extensive experience, David will be a great asset for our company, particularly as we are currently advancing multiple growth initiatives."
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Crazy Horse Resources Inc. has cancelled its amalgamation with Ballyliffin Capital Corp. due to declining market conditions. "The Corporation will not be completing the proposed transaction announced May 1, 2014 with Ballyliffin Capital Corp. ("Ballyliffin") whereby Ballyliffin and Crazy Horse would have amalgamated to create a new company under a the name "Asia Arc"," said the company, in a statement.
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Fortuna Silver Mines Inc. said it had increased its estimates of silver in its reserves by 26 per cent and silver in inferred resources by 67 per cent at its San Jose Mine, Mexico.
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Verisante Technology Inc. said it has re-negotiated a letter of intent for an equity stake in a Chinese company. The deal will see Verisante sublicense the global rights to develop its technology for lung cancer detection.
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Richmont Mines Inc. announced an accelerated and expanded development plan for the estimated 1.1 million ounce inferred resource extension below the company's Island Gold Mine in Ontario. Richmont also reports that a temporary crusher and conveyor have been installed at its Island Gold mill to do primary crushing while required repairs are being completed on the jaw crusher.
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In analyst actions today involving Canadian small caps:
Credit Suisse initiated coverage on DHX Media with a "neutral" rating and price target of $9 (Canadian).
AltaCorp Capital Research cut its price target on Black Diamond Group to $34 (Canadian) from $40 and reiterated an "outperform" rating.
Raymond James initiated coverage on Tricon Capital Group with an "outperform" rating and $9.50 (Canadian) price target.
TD Securities initiated coverage on Dream Unlimited with a "buy" rating and $17.50 (Canadian) price target.
CIBC World Markets initiated coverage on PolyMet Mining with a "sector outperformer" rating and $2 (Canadian) price target.