The biggest Canadian mining IPO since 2010 is betting on a country few investors associate with mining: Poland. On this episode of In the Money with Amber Kanwar, Amber sits down with Jordan Pandoff, CEO of Lumina Metals, to discuss the IPO which raised over $400 million, and the investment case behind one of the world’s largest undeveloped copper and silver projects. Backed by mining legend Ross Beaty, Lumina spent more than a decade advancing the project before taking the company public.
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Woke up in Calgary for our week of Stampede interviews. We’ve got three CEOs lined up while we are here, including the CEO of Enbridge in front of a live audience. Given the pipeline announcement last week, it will be timely to get his views. Our journey wasn’t a smooth one. Our flight was cancelled hours before and after rebooking on another airline we were delayed 5 hours. If I was travelling with kids this would feel like a targeted hellscape but with just me and producer Jillian it felt like two moms being given the gift of time. I read half a book I’ve been chipping away at for months and Jillian managed to get through a whole podcast!
Here are five things to know today:
SoH what: Stocks are mixed with the NASDAQ surging while oil prices dip to a 4-month low. Despite volatility around tankers trying to exit the Straight of Hormuz, the market continues to shrug geopolitical risk. Traffic in the straight is running around 30-40 ships per day, which is well below the 130 ship average before the war. However, it is significantly above 0 during the war and enough for the oil bears. OPEC also announced it is boosting production in August which serves to revive supply-glut fears that receded into the background when war broke out. Today we will get the Bank of Canada business outlook survey – watch for the view around inflation. It might be dated because the survey was taken before the deal between US and Iran. In the US, we will get the ISM services index in which activity and inflation are expected to show some deceleration in June.
Chips pop: Semiconductors are coming back to life this morning after a sharp sell off last week. This is ahead of two South Korean chip makers poised to make a splash this week: Samsung reports results tomorrow and could show record high profits thanks to the AI build and SK Hynix is set to go public this week in the US testing investor appetite for more memory chip exposure after a blistering rally. The sector is technically in correction territory (down 10% or more) for a second time this month. I sold 90% of my Micron shares last week taking my 700%+ gain and waiting to deploy elsewhere.
Feel the love: Apotex is getting a resounding thumbs up from Bay Street this morning. Analysts are out with initiation coverage on the newly public pharma and it’s all buy ratings. The average analyst price target sits at $40/share with the high at $42/share (implying 18% upside from here). Apotex went public on June 10th at $24/share and has traded well since then. Apotex is the #1 player in the Canadian pharmaceutical market based on prescriptions filled, number of products sold and employees. “We see key strengths in the durability of APTX’s Canadian cash-flow base (an unusually profitable, stable, high barrier-to-entry generics market), the company’s industry-leading first-to-market launch engine (powered by its deeply integrated R&D, regulatory, IP, and BD teams), and its NA manufacturing footprint,” wrote Michael Freeman of Raymond James, “These strengths are supported by macro tailwinds incl. a large and growing pharmaceuticals/wellness TAM across the Americas (>$1.1 tln today, 7% CAGR through CY30) and a material escalation in US and Canadian drug patent expiries (bad for pharma, good for APTX’s generics/biosimilars business).
Across the goal line: Rogers is buying the remaining 25% stake in MLSE it does not already own from Larry Tannenbaum’s Kilmer Sports for $4.35 billion. This makes Rogers the 100% owner of the MLSE which owns the Toronto Raptors and the Toronto Maple Leafs. Rogers says they will finance the deal with committed liquidity. This is the first step in a process that could merge the Toronto Blue Jays with the two other teams to create a formidable sports franchise. Rogers confirmed plans to sell a minority stake in the consolidated sports empire over the next year. The transaction value implies MLSE is now worth over $17 billion which is a materially higher than the $12.5 billion it was valued at just a year ago when it bought out BCE’s stake in MLSE. And with Kawhi coming back, maybe in another year it will be even higher thanks to another Raptors Championship run!
Trash talk: GFL Environmental soared in Canadian trade Friday while the US markets were closed as a result of a report suggesting the company was considering a potential take-private transaction as the stock languishes around a 2-year low and is down 13% so far this year. The report says the company has received interest from buyout firms but would need to have the backing of founder and CEO Patrick Dovigi. The stock has been in the penalty box after announcing its acquisition of industrial waste company Secure Waste Infrastructure back in April.
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