By Angela Harmantas
Slumping gold and copper prices have greatly affected the Canadian mining sector, at least according to the Ubika Mining 20 Index this month. Today on Smallcappower we highlight two companies who are seeing positive gains despite the weakness in the sector and analyze the reasons why they’re doing well. Also, we gather the reaction to Stephen Harper’s campaign promise that in theory makes it easier for first time homebuyers, and debate the value of a major Canadian company’s multi-billion dollar acquisition – here’s what you need to know today:
Are you following Smallcappower’s Ubika Mining 20 Index? This month, the index slipped 15.3%, just off the numbers from the TSX Venture and the TSX Mining Index, which were down 14.6% and 9.1% respectively. SilverCrest Mines Inc. was the top-performing component company, surging 21% after the company agreed to be acquired by First Majestic Silver Corp. in a C$154 million deal. Another company to watch: Energy Fuels Inc., which was the only other company to register a gain this month thanks to positive results from its Roca Honda uranium project and a more promising market sentiment for uranium. I’ve made the case for uranium in a previous blog and I’ll do it again here – watch for Canadian uranium stocks to increase with Japan’s restarting of the Sendai nuclear facilities.
I wrote about Stephen Harper’s campaign promise to raise the withdrawal limit for first-time home buyers from their RRSPs, which would in theory allow more Canadians to participate in the housing market. Smallcappower took to the streets of Toronto to listen to the reaction of potential homebuyers in a new video that you can see here. Maclean’s magazine has a piece that analyzes the “troubling data” behind the promise and apparently many of the Canadians who took advantage of the existing Home Buyer’s Plan had trouble paying the money back to the RRSP within the 15-year time period. Where do you stand on the issue?
Brookfield Infrastructure tends to fly under the radar (at least when it comes to giving media interviews), but it does know how to make a big splash when it counts. On Monday, the integrated investments company acquired Australian-based Asciano Ltd., which operates several container terminals and a national freight rail network, in a C$11.6 billion deal. I’ll be honest, I’m not sure I see the value in this massive investment for Brookfield’s shareholders given the struggles that Australia has experienced in its resources-based economy of late, so I’d love your input. Does this deal make sense? Tweet me your responses @aharmantas.
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
