Second Quarter 2023 Highlights:
Barrick Gold Corp. (GOLD) on Tuesday reported second-quarter net income of $305 million.
The Toronto-based company said it had profit of 17 cents per share. Earnings, adjusted for non-recurring costs, came to 19 cents per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 17 cents per share.
The gold and copper mining company posted revenue of $2.83 billion in the period.
JP Morgan just forecast $2,000 gold prices by the end of 2023, and $2,175 by the fourth quarter of 2024, as noted by SchiffGold.com. In fact, according to JP Morgan’s executive director of global commodities research, Greg Shearer, “there is even further upside potential for the yellow metal if the US economy falls into a recession. The deeper the recession, the more the Fed will have to cut interest rates, which is more supportive of gold.” That’s all positive news for gold stocks, including Calibre Mining Corp. (TSX:CXB.TO) (OTCQX:CXBMF), Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX.TO), Newmont Corporation (NYSE:NEM) (TSX:NGT.TO), Franco Nevada Corp. (NYSE:FNV) (TSX:FNV.TO), and Royal Gold Inc. (NASDAQ:RGLD).
In addition, “according to the 2023 Central Bank Gold Reserve Survey released by the World Gold Council, 24% of central banks plan to add more gold to their reserves in the next 12 months. Seventy-one percent of central banks surveyed believe the overall level of global reserves will increase in the next 12 months. That was a 10-point increase over last year.”
Telus Corp. (TU) on Friday reported second-quarter profit of $148.9 million.
The Vancouver, British Columbia-based company said it had profit of 10 cents per share. Earnings, adjusted for non-recurring costs, were 14 cents per share.
The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 18 cents per share.
The telecommunications company posted revenue of $3.68 billion in the period, which also fell short of Street forecasts. Five analysts surveyed by Zacks expected $3.72 billion.
George Weston Ltd. (WNGRF) on Tuesday reported profit of $370.8 million in its second quarter.
On a per-share basis, the Toronto-based company said it had net income of $2.64. Earnings, adjusted for non-recurring gains, came to $2 per share.
The baked goods maker and parent of the conglomerate Loblaw posted revenue of $10.34 billion in the period.
Magna International Inc. says it recorded a net income of US$339 million in its latest quarter.
The auto parts manufacturer, which keeps its books in U.S. dollars, says its second-quarter net income compared with a loss of US$156 million a year ago, when it incurred a non-cash impairment charge related to Russian investments.
The results for the period ended June 30 amounted to earnings of US$1.18 per diluted share compared with a loss of 54 cents per diluted share a year before.
Adjusted net income hit US$430 million or $1.50 per diluted share, up from US$243 million or 83 cents per diluted share a year earlier.
Sales were just shy of US$11 billion, up from US$9.3 billion a year ago.
The company attributed the sales boost to higher global production and new programs across its complete vehicles business.
This report by The Canadian Press was first published Aug. 4, 2023.
Companies in this story: (TSX:MG)
Enbridge Inc. (ENB) on Friday reported second-quarter profit of $1.44 billion.
The Calgary, Alberta-based company said it had net income of 68 cents per share. Earnings, adjusted for non-recurring gains, came to 51 cents per share.
The results met Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was also for earnings of 51 cents per share.
The oil and natural gas transportation and power transmission company posted revenue of $7.77 billion in the period, topping Street forecasts. Three analysts surveyed by Zacks expected $7.49 billion.
Monday August 7
Canadian markets closed (Civic Holiday)
(3 p.m. ET) U.S. consumer credit for June.
Earnings include: Palantir Technologies Inc.
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Tuesday August 8
China’s CPI
(8:30 a.m. ET) Canada’s merchandise trade balance for June.
(8:30 a.m. ET) U.S. goods and services trade balance for June.
(10 a.m. ET) U.S. wholesale trade for June. The Street is projecting a decline of 0.3 per cent from May.
Earnings include: Barrick Gold Corp.; CT REIT; Element Fleet Management Corp.; Eli Lilly and Co.; Finning International Inc.; Franco-Nevada Corp.; Great-West Lifeco Inc.; Green Thumb Industries Inc.; HudBay Minerals Inc.; Innergex Renewable Energy Inc.; Pet Valu Holdings Ltd.; Restaurant Brands International Inc.; Sun Life Financial Inc.; Tricon Capital Group Inc.; United Parcel Service Inc.; WSP Global Inc.
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Wednesday August 9
(8:30 a.m. ET) Canadian building permits for June.
Earnings include: CAE Inc.; CCL Industries Inc.; Crombie REIT; Curaleaf Holdings Inc.; Granite REIT; Hydro One Ltd.; Keyera Corp.; Kinaxis Inc.; Linamar Corp.; Manulife Financial Corp.; Metro Inc.; NexGen Energy Ltd.; Nuvei Corp.; Smart REIT; Stantec Inc.; Stella-Jones Inc.; Walt Disney Co.
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Thursday August 10
(8:30 a.m. ET) U.S. initial jobless claims for week of Aug 5.
(8:30 a.m. ET) U.S. CPI for July. The Street is projecting an increase of 0.2 per cent month-over-month and 3.3 per cent year-over-year.
(2 p.m. ET) U.S. treasury budget for July.
Earnings include: Algonquin Power & Utilities Corp.; Boardwalk REIT; Canada Goose Holdings Inc.; Canadian Tire Corp. Ltd.; Chartwell Retirement Residences; CI Financial Corp.; E-L Financial Corp.; Exchange Income Corp.; Filo Mining Corp.; H&R REIT; Northland Power Inc.; Onex Corp.; Paramount Resources Ltd.; Power Corp. of Canada; Quebecor Inc.; RB Global Inc.; Russel Metals Inc.; Wheaton Precious Metals Corp.
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Friday August 11
UK GDP
(8:30 a.m. ET) U.S. PPI for July. The consensus forecast is an increase of 0.2 per cent from June and up 0.7 per cent year-over-year.
(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index for August (preliminary reading).
Earnings include: Air Canada; Brookfield Renewable Corp.; Constellation Software Inc.; Emera Inc.; Saputo Inc.; Seabridge Gold Inc.; Sprott Inc.
Export Development Canada (EDC) has guaranteed fresh commercial loans of up to $3-billion to the controversial Trans Mountain pipeline expansion project that has suffered repeated cost overruns.
The information disclosed by EDC showed that a new loan guarantee of $2.75-$3-billion was signed in July, though it first appeared on EDC’s website late on Friday.
Prime Minister Justin Trudeau’s Liberal government bought the Trans Mountain pipeline in 2018 from Kinder Morgan Inc to ensure the expansion project got built and provided a $10-billion loan guarantee to TMC.
It is meant to unlock Asian markets for Canadian oil, which is mostly exported to the United States now. But the project has been hampered by regulatory obstacles, environmental opposition and construction delays, and is now anticipated to cost $30.9-billion, more than quadrupling the $7.4-billion budgeted in 2017.
The cost blowout and the impact of taxpayer has made the government’s ongoing support a contentious issue. Last year, Finance Minister Chrystia Freeland said that no more public funds would be committed to the project, and TMC has stated that it is looking for external funding.
Critics have also slammed the ownership of a pipeline project by the Liberal government, which they argue runs counter to Trudeau’s ambitious climate goals.
TMC had received an up to $3-billion loan guarantee between late March and early May this year and had received a $10-billion loan guarantee in 2022 from the federal government.
Canada’s finance ministry did not immediately respond to a Reuters request for comment on the fresh loan guarantee. In June, a finance ministry spokesperson said the loan guarantee was “common practice” and did not reflect any new public spending.
The project is expected to start shipping oil in the first quarter of 2024, and will nearly tripling the flow of crude from Alberta’s oil sands to Burnaby, British Columbia, to 890,000 barrels per day.