Category: Uncategorized

Monday August 10

China CPI, PPI, aggregate yuan financing and new yuan loans

Japan bank lending

Earnings include: AGT Foods and Ingredients Inc.; Altius Minerals Corp.; Cargojet Inc.; CT REIT; K92 Mining Inc.; Silvercorp Metals Inc.

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Tuesday August 11

Japanese markets closed

(6 a.m. ET) U.S. NFIB Small Business Economic Trends Survey for July.

(8:15 a.m. ET) U.S. ADP National Employment Report Estimate for July 25.

(8:30 a.m. ET) U.S. existing home sales for July. The Street is forecasting a month-over-month decline of 1.0 per cent.

Earnings include: Constellation Software Inc.; Denison Mines Corp.; Exchange Income Corp.; Franco-Nevada Corp.; Magellan Aerospace Corp.; Peyto Exploration & Development Corp.

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Wednesday August 12

Japan machine tool orders

Germany CPI

(8:30 a.m. ET) Canadian building permits for June.

(8:30 a.m. ET) U.S. CPI for July. Consensus is a month-over-month gain of 0.1 per cent and year-over-year rise of 3.4 per cent.

(2 p.m. ET) U.S. federal budget balance for July.

Earnings include: Air Canada; Bird Construction Inc.; CAE Inc.; CCL Industries Inc.; Cisco Systems Inc.; Curaleaf Holdings Inc.; G Mining Ventures Corp.; H&R REIT; Hydro One Ltd.; Linamar Corp.; Maple Leaf Foods Inc.; Metro Inc.; Northland Power Inc.; Pan American Silver Corp.; Stantec Inc.

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Thursday August 13

China current account surplus

Euro zone industrial production

(8:30 a.m. ET) U.S. initial jobless claims for week of Aug. 8. Estimate is 203,000, up 4,000 from the previous week.

(8:30 a.m. ET) U.S. PPI for July. Consensus is a rise of 0.2 per cent from June and 4.8 per cent year-over-year.

Earnings include: Applied Materials Inc.; Aya Gold & Silver Inc.; Canadian Tire Corp. Ltd.; Brookfield Corp.; Onex Corp.; Perpetua Resources Corp.; Telesat Corp.; TerraVest Industries Inc.; Wesdome Gold Mines Ltd.

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Friday August 14

Euro zone real GDP and trade balance

(8:30 a.m. ET) Canadian manufacturing shipments for June. The Street is projecting a month-over-month decline of 0.1 per cent.

(8:30 a.m. ET) Canada’s wholesale sales for June (excluding petroleum). Consensus is a gain of 2.7 per cent month-over-month.

(8:30 a.m. ET) U.S. retail sales for July. Consensus is a month-over-month rise of 0.2 per cent.

(10 a.m. ET) U.S. University of Michigan consumer sentiment for August (preliminary reading).

(10 a.m. ET) U.S. business inventories for June.

Earnings include: Montage Gold Corp.

Gold and Gold Equities: Week Ending August 7, 2026

Asset	July 31	August 7	Weekly move	Brief comment
Gold futures	US$4,049/oz	US$4,340.70/oz	+7.2%	Strongest week since January
U.S. Dollar Index	99.91	99.54	−0.4%	Weaker U.S. employment reduced rate-hike expectations
Franco-Nevada	C$298.24	~C$334	~+12%	Royalty exposure benefited from higher gold; earnings approaching
Agnico Eagle	C$203.52	C$249.37	+22.5%	Strongest move among the group
Barrick Mining	C$51.45	C$60.96	+18.5%	Gold leverage plus improving investor sentiment
Wheaton Precious Metals	C$152.48	C$187.32	+22.9%	Strong gold and silver exposure

FNV’s August 7 TSX close is approximate because the available Canadian historical feed had not yet posted the final two sessions. Its U.S.-listed shares closed at US$238.65.

What Drove the Moves

Gold: +7.2%

Gold recorded its strongest weekly gain since January after U.S. payrolls unexpectedly declined by 23,000, versus expectations for an increase of roughly 80,000.

The weak employment report:

• reduced expectations of a September Federal Reserve rate increase;
• lowered U.S. Treasury yields;
• weakened the U.S. dollar; and
• reduced the opportunity cost of holding non-yielding gold.

Spot gold ended near US$4,336, while the most actively reported Comex contract settled at US$4,340.70.

U.S. Dollar Index: −0.4%

DXY declined from 99.91 to 99.54 and briefly touched approximately 99.40. The weekly percentage decline was modest, but the dollar reached a seven-week low following the employment report.

A weaker dollar supports gold because it makes the metal less expensive for buyers using other currencies.

Company Comparison

Agnico Eagle: +22.5%

AEM delivered the strongest operating-miner performance. The shares rose considerably more than gold, demonstrating the normal earnings leverage of a producer: when gold prices rise, most of the additional selling price can flow through to margins after fixed operating costs.

Wheaton Precious Metals: +22.9%

Wheaton performed similarly to Agnico. Its streaming model provides exposure to gold and silver prices without bearing the full operating costs of mine ownership.

Silver also gained approximately 10% during the week, giving WPM an additional tailwind.

Barrick Mining: +18.5%

Barrick benefited from higher gold and improving margins, but slightly underperformed AEM and WPM. Barrick’s copper exposure, project execution risks and geopolitical operating exposure can cause it to trade differently from gold.

Franco-Nevada: approximately +12%

FNV rose strongly but underperformed the miners and WPM. Its royalty model is lower risk and less directly exposed to mining-cost inflation, but it generally has less short-term operational leverage than producers.

Investors were also positioning ahead of FNV’s Q2 results scheduled for August 11.

Interpretation

The miners rose substantially more than gold: Gold +7.2%versus equities +12% to +23%

This indicates strong bullish operating leverage, but also increases reversal risk. If gold gives back part of its gain, producer shares could decline by a larger percentage than the metal.

The rally would weaken if DXY recovers above 100.5, Treasury yields rise again, or gold falls below approximately US$4,200.

Summary

• TTTK is an index, not a stock: the S&P/TSX Capped Information Technology Index.
• For the week ending August 7, 2026, the index gained approximately 8.8%, based on its closely tracking XIT ETF.
• Shopify’s 28.7% earnings-driven surge accounted for most of the sector’s increase.
• Kinaxis gained 3.2% following strong Q2 recurring-revenue growth and higher guidance.
• CGI rose 1.7%, supported by earnings growth, but its modest organic revenue growth limited the increase.

TTTK Weekly Performance

The iShares XIT ETF, which tracks TTTK, moved from C$73.31 on July 31 to C$79.79 on August 7.

Measure	Performance
TTTK/XIT weekly change	Approximately +8.8%
TSX Composite weekly change	+3.3%
Relative outperformance	Approximately 5.5 percentage points

Technology substantially outperformed the broader Canadian market.

Why TTTK Increased

TTTK is highly concentrated. Its four largest companies represent more than 80% of the index.

Company	Approx. July 31 weight	Weekly return
Shopify	27.1%	+28.7%
Constellation Software	23.8%	Not the primary weekly catalyst
Celestica	22.8%	Secondary contributor
CGI	9.7%	+1.7%
Kinaxis	2.3%	+3.2%

Using the July 31 weights, Shopify alone contributed roughly: 27.1%×28.7%≈7.8 percentage points

Therefore, Shopify generated close to 90% of TTTK’s estimated 8.8% weekly gain. This also increased Shopify’s weight to approximately 30% by the end of the week.

Brief Company Comparison

Company	July 31 close	August 7 close	Weekly change	Main catalyst
Shopify	C$164.18	C$211.37	+28.7%	Major earnings beat and strong Q3 guidance
Kinaxis	C$168.00	C$173.43	+3.2%	SaaS and ARR growth; guidance raised
CGI	C$102.61	C$104.38	+1.7%	Strong EPS growth but modest revenue growth

Shopify: +28.7%

Shopify reported:

• Revenue of US$3.58 billion, up 34%;
• gross merchandise volume of US$115.57 billion, up 32%;
• adjusted EPS of US$0.42, above expectations;
• an 18% free-cash-flow margin; and
• Q3 revenue guidance in the low-30% growth range.

The guidance was well above the market’s prior expectation of approximately 27%. The results also reduced concerns that generative AI could weaken Shopify’s position. Management instead demonstrated that AI tools and partnerships are increasing merchant engagement.

Interpretation: strongest growth, but also the highest short-term valuation and volatility risk after a nearly 29% weekly increase.

Kinaxis: +3.2%

Kinaxis reported:

• Total revenue growth of 16%;
• SaaS revenue growth of 20%;
• annual recurring revenue growth of 19%, or 21% in constant currency;
• adjusted EBITDA growth of 23%; and
• a 130-basis-point improvement in adjusted EBITDA margin.

Management increased its full-year total-revenue and SaaS-growth guidance.

Interpretation: healthy recurring growth and improving margins, but its 2.3% index weight meant the gain had little influence on TTTK.

CGI: +1.7%

CGI’s latest results included:

• Revenue growth of 2.5%, or 1.3% in constant currency;
• net earnings growth of 13.8%; and
• diluted EPS growth of 22.5%.

CGI’s earnings benefited from margin control and a lower share count, while underlying organic revenue growth remained modest.

Interpretation: more stable and less expensive than high-growth software companies, but with a slower top-line growth profile.

Key Risks

• Concentration: Shopify, Constellation Software and Celestica represent approximately three-quarters of TTTK.
• Shopify reversal: A 10% decline in Shopify could reduce TTTK by approximately three percentage points at its current weight.
• Valuation: XIT reported a portfolio P/E of approximately 47 times, indicating considerable growth expectations.
• Earnings sensitivity: After the weekly increase, disappointing guidance from any major constituent could produce a sharp index correction.

Short-Term Scenarios

Scenario	Requirement	TTTK implication
Bull	Shopify holds its earnings gain and other major constituents strengthen	Continued upward momentum
Base	Shopify consolidates while CGI and Kinaxis remain stable	Sideways movement after the surge
Bear	Profit-taking in Shopify or weaker software valuations	Partial reversal of the weekly gain

The positive short-term thesis would be disproved by Shopify surrendering a substantial portion of its earnings-day gain on heavy volume.

ummary

• Loblaw (L.TO) declined 4.3%, closing August 7 at C$62.96.
• George Weston (WN.TO) declined 3.4%, closing at C$101.21.
• Both companies fell despite solid Q2 earnings because food same-store sales growth slowed and the positive results were largely reflected in their valuations.
• Weston followed Loblaw lower because Loblaw is its principal operating investment.
• Rotation away from defensive consumer-staples shares also contributed; TTCS fell approximately 1.6% while the TSX Composite gained 3.3%.

Weekly Performance

Date	Loblaw close	Daily change	George Weston close	Daily change
July 31	C$65.81	—	C$104.77	—
August 4	C$65.31	−0.76%	C$103.23	−1.47%
August 5	C$64.09	−1.87%	C$101.99	−1.20%
August 6	C$63.30	−1.23%	C$102.12	+0.13%
August 7	C$62.96	−0.54%	C$101.21	−0.89%
Weekly change		−4.33%		−3.40%

Loblaw: Why the Shares Declined

Loblaw’s Q2 operating results were positive:

Q2 2026 measure	Result
Revenue	C$15.27 billion, +4.1% YoY
Retail sales	C$15.05 billion, +4.1%
Adjusted EBITDA	+5.1%
Adjusted diluted EPS	+11.9%
E-commerce sales	+19.3%
Food same-store sales	+1.6%
Drug retail same-store sales	+4.6%

Despite the earnings growth, three factors likely pressured the shares.

1. Food same-store growth slowed

Food same-store sales increased only 1.6%, compared with 3.5% a year earlier. New stores helped total sales growth, but the slower comparable-store result raised questions about underlying organic growth.

Discount banners such as No Frills and Maxi continued to perform well, but conventional grocery operations faced more modest growth.

2. “Sell-the-news” reaction

Loblaw entered the week following a strong period and solid Q2 expectations. Adjusted EPS beat estimates by only about 2%, while revenue was broadly in line. The results were good, but apparently not strong enough to support further immediate valuation expansion.

Analysts raised targets after the release—including reported targets of C$73 from BMO and C$72 from Desjardins—but this did not prevent short-term profit-taking.

3. Defensive-sector rotation

Investors moved toward mining, real estate and other economically sensitive sectors after weaker U.S. employment data reduced expectations of a Federal Reserve rate increase. The broader TSX gained 3.3%, while consumer staples declined.

This relative-performance gap indicates that part of Loblaw’s decline was sector rotation, not deterioration in its core business.

George Weston: Why It Followed Loblaw Lower

George Weston’s principal assets are:

• its controlling ownership position in Loblaw; and
• its interest in Choice Properties REIT.

Consequently, changes in Loblaw’s valuation materially affect WN’s share price.

George Weston reported:

Q2 2026 measure	Result
Revenue	C$15.20 billion, +4.1% YoY
Adjusted EBITDA	C$1.94 billion, +6.1%
Adjusted net earnings	C$436 million, +9.8%
Adjusted diluted EPS	C$1.14, +12.9%

However, reported net earnings fell approximately 48%, primarily because of unfavourable fair-value adjustments. These are largely accounting-related rather than evidence of a comparable operating decline, but they may have added headline pressure.

WN declined slightly less than Loblaw because its Choice Properties exposure provided some diversification and real estate performed relatively well during the week.

Interpretation

The week’s decline appears to be a valuation and positioning adjustment, rather than a clear breakdown in operating performance.

Positive fundamentals included:

• double-digit adjusted EPS growth;
• strong pharmacy and healthcare sales;
• 19.3% e-commerce growth;
• continued strength at discount grocery banners; and
• increased planned share repurchases.

The main concern was that 1.6% food same-store growth does not fully support an expanding valuation multiple without continued margin improvement and share repurchases.

Key Levels and Scenarios

Company	Initial support	Resistance	Base interpretation
Loblaw	C$61–62	C$65–67	Consolidation after earnings
George Weston	C$99–100	C$104–106	Tracks Loblaw with partial REIT diversification

Scenario	Likely development
Bull	Food comparable sales accelerate and margins remain firm
Base	EPS grows through margins, new stores and buybacks while shares consolidate
Bear	Same-store sales slow further or margin pressure offsets revenue growth

The positive thesis would weaken if food same-store growth remains below inflation for several quarters or if adjusted earnings stop growing faster than revenue.

Summary

• Alimentation Couche-Tard (ATD.TO) rose C$2.29, or 2.5%, during the week ending August 7, 2026.
• The shares closed at C$93.30, versus C$91.01 on July 31.
• ATD outperformed the TTCS Consumer Staples Index, which declined approximately 1.6%.
• The principal driver was continued positive reaction to Couche-Tard’s proposed US$8.6–8.7 billion acquisition of Żabka Group.
• The Wednesday decline reflected profit-taking and concern about the acquisition’s size and higher leverage.

Weekly Performance

Date	Closing price	Daily change
July 31	C$91.01	—
August 4	C$93.13	+2.33%
August 5	C$91.56	−1.69%
August 6	C$92.70	+1.25%
August 7	C$93.30	+0.65%
Weekly change		+2.52%

The TSX was closed August 3 for the Civic Holiday. ATD traded between C$90.57 and C$93.50 during the four-session week.

Why the Shares Increased

Żabka acquisition created growth expectations

On July 31, Couche-Tard announced an offer to acquire Poland-based Żabka Group. The transaction would:

• add approximately 13,000 convenience stores in Poland and Romania;
• increase the combined store network to approximately 30,300 locations;
• raise Europe’s share of the combined store base from roughly 30% to 60%;
• add approximately US$7.4 billion in annual revenue and US$1.1 billion in adjusted EBITDA; and
• provide an estimated US$250 million in annual synergies by the third year.

Management expects the transaction to improve adjusted EBITDA margins immediately and become accretive to earnings per share by the second year. These projections supported Tuesday’s 2.33% gain. Couche-Tard transaction announcement

Diversification away from fuel

Żabka earns more from convenience merchandise and food than traditional fuel sales. The acquisition would reduce Couche-Tard’s dependence on volatile North American fuel margins and increase its exposure to European convenience retailing.

Positive analyst sentiment

RBC had recently increased its price target from C$106 to C$111, maintaining an outperform rating. The broader analyst consensus remained positive, with an average target around C$102, although estimates vary by provider.

Why the Shares Fell Wednesday

The 1.69% Wednesday decline likely reflected investors reassessing the acquisition’s risks:

• Higher leverage: Couche-Tard expects net debt to adjusted EBITDA of approximately 3.0 times at closing.
• Execution risk: Żabka would be Couche-Tard’s largest acquisition.
• Purchase price: The offer values Żabka at approximately US$8.6–8.7 billion and includes a 9.4% premium.
• Regulatory risk: The transaction requires European, Polish and Romanian approvals.
• Synergy uncertainty: The US$250 million estimate will take approximately three years to achieve.

The subsequent Thursday and Friday recovery indicates that investors currently view the strategic benefits as outweighing these concerns.

Valuation and Technical Context

ATD finished the week only about 2% below its C$95.15 52-week high. This demonstrates strong momentum but also reduces the margin for disappointment.

Level	Interpretation
C$95–96	Immediate resistance and 52-week-high area
C$91–92	First support
C$88–90	Stronger support if acquisition concerns return
C$102	Approximate analyst consensus target
C$111	Recent RBC target

Scenarios

Scenario	Key development	Possible price response
Bull	Regulatory progress and confidence in US$250M synergies	Break above C$95 toward C$100–102
Base	Deal proceeds, but investors await financing details	Consolidation around C$90–96
Bear	Higher financing cost, regulatory delay or reduced synergy expectations	Retreat toward C$85–90

The positive thesis would be weakened if management raises the expected leverage, delays deleveraging beyond the second year, or fails to demonstrate a credible path to earnings accretion.

Summary

• TTCS is an index, not a stock: the S&P/TSX Capped Consumer Staples Index.
• For the week ending August 7, 2026, TTCS declined approximately 1.6%, based on its closely tracking XST ETF, which fell from C$68.05 to C$66.99.
• The decline occurred while the TSX Composite gained 3.3%, meaning staples materially underperformed the broader market.
• Weakness in Loblaw, George Weston, Metro and Empire outweighed gains in Alimentation Couche-Tard and Saputo.
• TTCS is highly concentrated: its four largest constituents represent approximately 78% of the index.

Leading Companies and Weekly Impact

Company	Symbol	Approx. weight	Weekly return*	Estimated index contribution
Alimentation Couche-Tard	ATD.TO	27.5%	+2.5%	+0.69 percentage points
Loblaw	L.TO	23.7%	−4.3%	−1.03 points
Metro	MRU.TO	14.4%	−2.9%	−0.41 points
George Weston	WN.TO	12.8%	−3.4%	−0.43 points
Saputo	SAP.TO	8.2%	+2.9%	+0.24 points
Empire	EMP.A.TO	5.0%	−4.0%	−0.20 points

*July 31 close to August 7 close. Contributions are estimates using recent XST portfolio weights; actual TTCS weights can vary with daily prices and index rebalancing.

What Drove the Index

1. Loblaw was the largest negative influence

Loblaw fell from C$65.81 to C$62.96, approximately 4.3%. Because it represents almost one-quarter of TTCS, its decline subtracted roughly one percentage point from the index.

The shares weakened despite previously reported Q2 profit growth and subsequent analyst target increases. This suggests:

• profit-taking after the earnings release;
• concerns that favourable results were already reflected in the valuation; and
• a rotation away from defensive companies as investors moved toward more cyclical sectors.

2. George Weston amplified Loblaw’s decline

George Weston fell from C$104.77 to C$101.21, approximately 3.4%.

Weston owns a controlling interest in Loblaw, so the two companies frequently move together. Since both are substantial TTCS constituents, the index has significant overlapping exposure to the Loblaw business. Together, they account for approximately 36.5% of the sector index.

3. Metro and Empire added grocery-sector weakness

Metro declined approximately 2.9%, while Empire fell about 4.0%. Their declines indicate that the weakness extended beyond Loblaw and affected Canadian grocery companies more broadly.

Possible factors include elevated valuations, margin concerns and profit-taking after a strong defensive-sector period. I found no single major sector-wide announcement that fully explains the decline.

4. Couche-Tard prevented a larger decline

Couche-Tard rose from C$91.01 to C$93.30, approximately 2.5%. As the largest holding, this contributed roughly 0.7 percentage points and materially reduced the damage from grocery stocks.

5. Saputo rebounded sharply Friday

Saputo finished the week at C$40.57, up approximately 2.9% from July 31. Its 4.75% Friday gain helped TTCS recover part of its earlier weekly decline.

Interpretation

TTCS’s decline does not necessarily indicate weakening demand for essential goods. The more likely explanation is a combination of:

• profit-taking in highly valued defensive companies;
• rotation into mining, real estate and other sectors that led the TSX rally;
• weakness in the heavily weighted Loblaw–George Weston group; and
• concentration risk within an index containing only about ten principal companies.

The index’s approximately 25 times earnings valuation remains relatively high for a defensive sector. Strong earnings growth is therefore required to prevent further valuation compression.

Key Levels and Scenarios

Scenario	Likely condition	TTCS implication
Bull	Loblaw stabilizes and ATD continues higher	Recovery toward the recent highs
Base	Mixed constituent performance	Sideways consolidation
Bear	Further declines in Loblaw, Weston and Metro	Continued sector underperformance

The TTCS thesis would improve if Loblaw and Weston regain upward momentum while ATD remains firm. It would weaken if grocery stocks continue falling despite stable earnings expectations.

The Aug 5, 2026 jump on the TSX Composite ($TXCX / S&P/TSX) was driven mainly by a surge in Shopify and a strong rally in gold/mining stocks, pushing the index to a fresh record close.

Key numbers

• Aug 4 close: 35,801.59 (+1.63%)
• Aug 5 close: 36,146.42 (+344.83 points / +0.96%)
• Intraday highs exceeded 36,400; the index topped 36,000 for the first time.

The 30-minute chart shows the sharp upward move that day (after the prior session’s strength).

Main drivers

1. Shopify earnings and outlook Shopify reported Q2 results with ~34% revenue growth (beat estimates), strong GMV, gross profit, and free-cash-flow growth (18% FCF margin). Management guided for continued low-thirties revenue growth in Q3 and highlighted AI tools boosting merchant activity. Shares jumped roughly 15–17% (one of its biggest single-day moves in nearly a year), lifting the broader technology sector ~4–5%. Shopify acted as a major positive catalyst for the index.
2. Gold and mining stocks Gold prices rose sharply on hopes of progress toward reopening the Strait of Hormuz (Iran-Oman talks and related comments from U.S. officials/Trump administration). This tempered some inflation and geopolitical risk concerns. The materials/mining group gained ~4.8–5.6%, with strong moves in names such as Eldorado Gold, Kinross, NovaGold, and others.
3. Supporting factors
   • Broader risk-on sentiment from Middle East de-escalation hopes (Strait of Hormuz deal optimism).
   • Positive contributions from other earnings (e.g., iA Financial).
   • Continuation of the prior day’s (Aug 4) strength in metals and tech.

Energy was weaker (oil mixed/soft at times), but the gains in tech and materials more than offset it. The move extended a strong start to August and marked consecutive record closes.

In short: Shopify’s strong report + gold-miner strength on Hormuz optimism produced the visible Aug 5 jump and new highs on the TSX.

Highlights

• Delivered Q2 2026 adjusted EPS ² of $0.69 and reported EPS of $0.34.
• Positioned to achieve 2026 adjusted EPS ² growth above the annual target range of 5-7% ³ and remain committed to 5-7% adjusted EPS ² growth through 2030 ³ .
• Strengthened year-to-date operating cash flow ⁴ by 8% versus the first six months of 2025.
• Safely advanced more than $1.7B of customer-focused infrastructure investments in the first half of 2026, while remaining on track to execute $4B annual capital plan this year.

“Our second quarter results reflect disciplined execution across the business and continued solid progress on our long-term growth strategy,” said Scott Balfour, President and CEO of Emera Inc. “During the first half of the year, we successfully concluded our portfolio optimization strategy with regulatory approval of the New Mexico Gas transaction and closing the sale of Grand Bahama Power Company. This further strengthens the company and sharpens our focus. Our utilities invested more than $1.7 billion on behalf of our customers in the same timeframe, supporting reliability, resiliency and growth across our jurisdictions. Looking ahead, our focused portfolio of high-quality regulated utilities positions Emera to continue delivering the reliable energy customers depend on, while creating long-term value for shareholders.“

Q2 2026 Financial Results

Q2 2026 adjusted net income attributable to common shareholders (“adjusted net income”) ² was $212 million, or $0.69 per common share, compared to $236 million, or $0.79 per common share, in Q2 2025. The decrease was primarily due to increased interest expense and foreign exchange (“FX”) losses at Corporate; decreased earnings at New Mexico Gas Company (“NMGC”); and lower earnings due to the sale of Grand Bahama Power Company (“GBPC”).

Q2 2026 reported net income was $105 million, or $0.34 per common share, compared to net income of $135 million, or $0.45 per common share, in Q2 2025. Reported income also included a $59 million increase in mark-to-market (“MTM”) losses, after-tax, and the $19 million loss on sale of GBPC, after tax and transaction costs, partially offset by the $72 million charges related to the pending sale of NMGC recognized in Q2 2025.

2026 YTD Financial Results

Year-to-date adjusted net income ¹ was $627 million or $2.06 per common share, compared with $615 million or $2.07 per common share year-to-date in 2025. Year-to-date adjusted net income ¹ increased $12 million primarily due to increased earnings at PGS, EES and TEC, higher equity earnings at Bear Swamp and higher income tax recovery at Corporate. These were partially offset by increased interest expense and higher operating, maintenance and general (“OM&G”) expenses at Corporate; lower earnings at NSPI and NMGC; and lower earnings due to the sale of GBPC.

Year-to-date reported net income was $667 million or $2.19 per common share, compared with net income of $718 million or $2.41 per common share, year-to-date in 2025. Year-to-date reported net income also included a $116 million decrease in MTM gain, after-tax, and the $19 million loss on sale of GBPC, partially offset by the $72 million charges related to the pending sale of NMGC recognized in Q2 2025.

The translation impacts of a stronger CAD on USD denominated earnings decreased net income attributable to common shareholders by $13 million in Q2 2026 and $43 million year-to-date compared to the same periods in 2025. In Q2 2026, the impact of the change in FX rates on adjusted net income was nil. Year-to-date, strengthening of the CAD decreased adjusted net income by $17 million, compared to the same period in 2025. These impacts include the effect of the FX hedges used to mitigate translation risk of USD earnings, which are included in Corporate in the Other segment.

Record Financial Performance and Strong Balance Sheet

• Q2 2026: A record $929 million in revenue, $543 million in net earnings and $650 million in operating cash flow.
• First half of 2026: A record $1.8 billion in revenue, record $1.1 billion in net earnings and record $1.4 billion in operating cash flow.
• Declared a quarterly dividend ¹  of $0.195 per common share and made two quarterly dividend payments totaling $177 million.
• Balance Sheet: Cash balance of $100 million and debt outstanding totaling $2.0 billion, resulting in total net debt of $1.9 billion.
  • Enhanced financial flexibility by upsizing the Revolving Credit Facility by $500 million to $2.5 billion, extending the maturity date by one year to June 30, 2031, and broadening the lending syndicate. 
  • Together with the $500 million accordion feature under the Revolving Credit Facility, the Company has $2.6 billion of available liquidity.

High Quality Asset Base

• Streaming and royalty agreements on 22 operating mines, 20 development projects and 15 exploration & other stage projects, totaling 57 assets ⁵ .
• Delivered attributable gold equivalent production ³  (“GEOs”) of 202,200 ounces in the second quarter of 2026, a 6% increase relative to the comparable period of the prior year primarily due to the acquisition of the precious metals purchase agreement (“PMPA”) with BHP Group Limited (“BHP”) for its 33.75% portion of the silver produced at Antamina (the “BHP Antamina PMPA”), in addition to the continued realization of the Company’s growth strategy with production from Hemlo, Fenix, Platreef and Goose.
• Further de-risking of industry leading forecast growth profile with advancement of construction activities at a number of development projects, including Mineral Park, Platreef, Fenix, El Domo, Kurmuk, and Koné.
• On April 1, 2026, the Company entered into a PMPA with KGL Resources Limited (“KGL”) for a portion of the gold and silver produced at the Jervois project located in Australia.
• On April 20, 2026, the Company entered into a Royalty agreement with Spanish Mountain Gold Limited (“Spanish Mountain Gold”) for a 1.5% net smelter returns royalty on gold and silver production from the Spanish Mountain Gold project.
• On June 4, 2026, the Company entered into a Royalty agreement with Cipango Limited (“Cipango”) for a 1.5% net smelter returns royalty covering seven mineral exploration properties located in Japan.