Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news
GCM Mining Corp. (GCM-T) announced it’s buying the remaining interest in Aris Gold Corp. (ARIS-T) it doesn’t already own. Under the terms of the deal, all outstanding Aris Gold shares not held by GCM will be exchanged at a ratio of 0.5 of a common share of GCM for each common share of Aris Gold.
It’s described as a “no premium transaction that simplifies the ownership structure within a single company.” GCM shareholders and Aris Gold shareholders (taking into consideration the 44.3 per cent of Aris Gold currently held by GCM) are expected to own approximately 74 per cent and 26 per cent of the combined group, respectively, according to the release.
The new company will be named Aris Gold Corp. and will be led by Ian Telfer as chair and Neil Woodyer as CEO and director. The companies said the combined company will create a “top-of-the-class” junior producer and the largest gold company in Colombia, with diversification in Guyana and Canada.
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Quipt Home Medical Corp. (QIPT-X) announced a contract with Cardinal Health at-Home, a business unit of Cardinal Health Inc. (CAH-N).
“The execution of this contract with Cardinal Health for the supply of disposable medical supplies is an important milestone for Quipt,” stated Greg Crawford, chairman and CEO of the company. “This contract will provide us [with] the ability to expand our continuum of care, produce meaningful cross-selling opportunities and allow us to further leverage the national insurance contract recently announced.”
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Stelco Holdings Inc. (STLC-T) announced adjusted EBITDA is expected to be “materially below” its second-quarter level due to falling steel prices and expects “further weakening” in the fourth quarter “assuming the lower prices and shorter lead-times being experienced currently fully impact results and prevail through the remainder of 2022.”
It said adjusted EBITDA for the second quarter is expected to be in the range of $460-million to $470-million versus $410- million a year ago.
“Prices began increasing sharply in March 2022 and then reversed course in late April, with the benchmark CRU [hot rolled coil steel] sheet price falling for 13 consecutive weeks from a peak of US$1,492 per net ton to US$895 per net ton currently,” the company stated.
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Copper Mountain Mining Corp. (CMMC-T) reported second-quarter revenue of $59.1-million, down from $142.1-million a year ago. Revenue in the second quarter is based on the sale of 12.9 million pounds of copper, 5,069 ounces of gold, and 57,653 ounces of silver compared to 21.7 million pounds of copper, 6,545 ounces of gold, and 121,291 ounces of silver sold a year ago. “The decrease in revenue was due to lower quantities of all metals sold and at a lower average price,” the company stated.
The expectation was for revenue of $89.8-million in the latest quarter, according to S&P Capital IQ.
Its net loss for the second quarter was $5.3-million or 2 cents per share compared to a profit of $38.7-million or 12 cents a year ago. Adjusted earnings came in at $3.7-million or 2 cents per share, which was in line with expectations and compared to adjusted earnings of $32.2-million or 15 cents a year ago.
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AutoCanada Inc. (ACQ-T) reported preliminary second-quarter results, including revenue of approximately $1.7-billion, which it said represents growth of approximately 32 per cent over the same period in 2021. The expectation is for revenue of $1.5-billion, according to S&P Capital IQ.
Net income is expected to come in at about $39.1-million, including $10-million of incremental inventory writedowns, versus $37.7-million in the prior year.
The company said the $10-million in writedowns is related to used vehicle inventory in its Canadian operations. “Management determined that the writedown was prudent to calibrate our cost of used vehicle inventory for the changing macro environment,” it stated.
The company said it plans to report official earnings for the quarter on Aug. 10, after the expiry of its substantial issuer bid.
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