A Lundin mine
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.
Claude Resources Inc. said it achieved record gold production of 20,614 ounces in the third quarter at its Seabee gold operation in Saskatchewan. It raised its 2014 gold production guidance to 61,000 to 64,000, from 50,000 to 54,000.
Shares in the company were up 20 per cent at the start of today's trading.
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Lundin Mining Corporation has entered into a definitive agreement with Freeport-McMoRan Inc. to purchase its 80 per cent ownership stake in the Candelaria/Ojos del Salado copper mine in Chile for $1.8-billion (U.S.). The remaining 20 per cent ownership stake will continue to be held by Sumitomo Metal Mining Co., Ltd and Sumitomo Corporation.
In response to the news, Raymond James upgraded Lundin to a "strong buy" rating today, raised its price target to $8.50 (Canadian), and suggested the company may implement a dividend starting next year. Read more in Today's analyst upgrades and downgrades.
Shares in Lundin were down 3 per cent in early trading. The deal for the copper mine was widely expected after a Globe and Mail report this summer suggested the acquisition was in the works.
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DHX Media Ltd. said it will produce a new preschool series with Ragdoll Productions called Twirlywoos for British broadcaster CBeebies. DHX Media will also handle the global distribution, merchandising, brand management and marketing of the series by Anne Wood, creator of the original Teletubbies and In the Night Garden.
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American Hotel Income Properties REIT LP announced on Monday that it has entered into a bought deal to sell 4,310,000 limited partnership units for approximately $45-million. The REIT also announced that it has entered into definitive agreements to acquire through its subsidiaries two hotel portfolios comprised of seven branded hotel properties located in Oklahoma and Texas for approximately $79.4-million (U.S.).
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Banro Corp. reported an increase of more than 30 per cent in gold production at its Twangiza mine over the third quarter of 2013.
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Canadian Zinc Corp. announced the start-up of its underground program at its Prairie Creek zinc, lead and silver mine in the Northwest Territories.
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Lake Shore Gold said it intersected wide, high-grade gold mineralization at its 144 property and confirmed an earlier gold discovery near its Thunder Creek deposit.
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Cameco said its unionized employees at the McArthur River mine and Key Lake mill operations have voted to accept a new collective agreement.
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Golden Star Resources announced preliminary production results from its Wassa and Bogoso mines for the quarter ended September 30, 2014. Sam Coetzer, CEO of Golden Star, commented, "Production at both mines improved over the period with both grades and throughput increasing towards quarter end. In line with our strategy, costs are trending downwards; particularly at Bogoso where costs for the quarter are expected to be lower than they have been in a number of years. With the strong combined performance from the mines in September I am confident that we will conclude 2014 on a positive note."
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Capstone Mining Corp. reported third-quarter operating results for three of its mines. "All of our mines are operating according to plan and copper production remains on target to meet our guidance for the year," said Darren Pylot, president and CEO of Capstone.
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Excelsior Mining Corp. announced the results of a new Economic Impact Study for the Gunnison copper project in southern Arizona. The study "illustrates that the Gunnison project will generate significant positive economic benefit at both the state and county levels," Excelsior said.
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In analyst actions involving Canadian small caps today:
Raymond James upgraded Lundin Mining Corp. to "strong buy" from "outperform" and raised its price target to $8.50 (Canadian) from $7.75. It cited the company's deal to buy Freeport-McMoRan's Candelaria copper mine in China for $1.8-billion (U.S.).
Cantor Fitzgerald Canada initiated coverage on Paramount Gold and Silver Corp. with a "buy" rating and $1.80 (Canadian) price target.
Euro Pacific Canada initiated coverage on Computer Modelling Group Ltd. with a "buy" rating and $15 (Canadian) price target.
CIBC upgraded Fortuna Silver Mines to "sector outperform" from "sector perform" with a price target of $6.50 (Canadian).
TD Securities upgraded Franco Nevada to buy from hold with a $66 (Canadian) price target.
Cormark Securities upgraded Canam Group to "top pick" from "buy" with price target of $15 (Canadian).
Cormark Securities downgraded Superior Plus to "market perform" from "buy" with a price target of $14.30 (Canadian).
Cormark Securities initiated coverage on Rio Alto Mining with a "buy" rating and $3.75 (Canadian) price target.
BTIG initiated coverage on Element Financial with a "buy" rating and $20 (Canadian) price target.