4 Canadian Stocks That Could Get Hurt by Russian Exposure

The Canadian stocks on our list could be impacted by new sanctions or a potential military conflict with Russia

SmallCapPower | April 16, 2018: Following U.S. President Trump’s tweets regarding a prospective attack on Syria and new U.S. sanctions, the Russian ruble has fallen to a 16-month low. Many companies operating in Russia have also seen declines, with companies such as Kinross Gold (TSX:K) falling 9% on the day of Trump’s tweet despite the Company’s statement it would be unaffected. The Canadian stocks on our list today could see significant downturns if the Russian economy falters.

Kinross Gold Corp. (TSX:K) – $4.77
Gold

Kinross Gold is a multi-asset gold producer operating in the Americas, West Africa, and Russia, which represent 60%, 20%, and 20% of the Company’s production, respectively. The Company produced 2.7M oz. Au, at an average all-in sustaining cost of US$954, and expects to slightly increase production and decrease sale costs. On April 9, the Company announced that its two Russian mining operations would be unaffected by the U.S. sanctions, but the Company’s stock price declined 9% regardless, as investors remained wary of companies with significant Russian assets.

  • Market Cap: $5,962.2 Million
  • 1 Month Total Return: 3.2%
  • YTD Total Return: -12.0%

Calfrac Well Services Ltd. (TSX:CFW) – $6.22
Oil Related Services and Equipment

Calfrac Well Services is a Canada-based oil and gas services company, operating in Canada, the U.S., Latin America, and Russia. The Company provides hydraulic fracturing, coiled tubing, and cementing services, as well as other well stimulation services. The Company significantly increased its operations in 2017, increasing its U.S. fleets by 160% and Canadian fleets by 40%, while its International operations declined 4%. The Company aims to increase its free cash flow over 2018.

  • Market Cap: $895.2 Million
  • 1 Month Total Return: -7.3%
  • YTD Total Return: 4.0%

Silver Bear Resources Inc. (TSX:SBR) – $0.24
Silver

Silver Bear Resources is a Canada-based silver developer, focused on its Mangazeisky Silver property in Russia. The Company’s flagship asset is the Vertikalny Project (situated on its Mangazeisky property), which is located 400 kilometers north of Yakutsk in the Republic of Sakha. Vertikalny contains extraordinarily high-grade silver, hosting 1.1Mt grading 1340 g/t Ag. The mine, which is 94% constructed, is expected to process 110,000t/year.

  • Market Cap: $160.5 Million
  • 1 Month Total Return: -2.0%
  • YTD Total Return: 33.3%

PHX Energy Services Corp. (TSX:PHX) – $1.95
Oil & Gas Drilling

PHX Energy Services is a Canada-based oil and gas services company operating in Canada, the U.S., Albania, and Russia. The Company provides directional drilling and motor rentals, survey management, gyro surveying, and stream services. PHX’s Canadian and U.S. divisions operated at a loss in 2017, and the Company aims to further expand its operations in East Siberia.

  • Market Cap: $113.9 Million
  • 1 Month Total Return: 2.6%
  • YTD Total Return: -17.0%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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