Although the TSX composite was up just 1% for the first three months of 2015, some of the biggest gainers came from an unexpected place: the resource sector. The following five TSX-listed companies had the best performing stocks on Canada’s senior exchange in first quarter of 2015, according to S&P Capital IQ.
5. Claude Resources Inc. (TSX: CRJ) +94%
While most gold stocks appear tarnished, Claude shares have been shining of late. The company has produced more than one million ounces of gold from its Seabee gold mine in Saskatchewan and is developing the Amisk Gold Project in the same province. Claude Resources recently reported record gold production of 62,984 ounces for 2014, a 44% increase from last year, while at the same time ramping up its mill head grade to 7.32 grams per tonne (g/t). In addition, the company’s all in sustaining cost per ounce fell 29% to US$1,186 allowing it swing to a net profit of $4.6 million in 2014. Claude also managed to reduce its debt by $10.6 million during the past year.
4. Espial Group Inc. (TSX: ESP) +105%
Espial develops software for Smart TV manufacturers as well as Smart Top box vendors and has a recurring revenue model. On January 13, 2015, the company announced a major contract with a European Tier 1 Cable operator and its stock price surged more than 30%. Espial’s stock price jumped once again on March 30, 2015, after the company announced another contract with a different major European cable operator with more than 1.5 million connected households.
At least one analyst said Espial is delivering the “superior, Netflix-like experience” to cable operators, adding that although the sales cycles are long for this company, it is winning substantial contracts.
3. Eastmain Resources Inc. (TSX: ER) +130%
Eastmain owns 100% interests in the Eau Claire and Eastmain gold deposits, both of which are in Quebec. Eau Claire is what has generated much of the investor interest, with a current Measured and Indicated resource of 951,000 ounces at 4.1 g/t along with 633,000 Inferred ounces at 3.9 g/t. Eastmain Resources has $2 million worth of drilling planned for 2015 along with $2 million earmarked for a Resource Update and Preliminary Economic Assessment (PEA).
2. Spectral Medical Inc. (TSX: EDT) +151%
Spectral is a Phase III company seeking U.S. FDA approval for its product to treat patients with septic shock, a market the company estimates at $3 billion annually. Early in 2015, Spectral said it was on track for potential commercialization of its PMX by the first half of 2016. PMX is a therapeutic hemoperfusion device that removes endotoxin, a main trigger of sepsis, from the bloodstream. And, more recently Spectral announced that the FDA had accepted its plan for a rolling Pre Market Approval submission for its treatment. About 40% of Spectral Medical stock is held by insiders and the company has approximately $13 million in cash and equivalents on hand.
1. Theratechnologies Inc. (TSX: TH) +172%
Theratechnologies is a specialty pharmaceutical company with a key product, EGRIFTA, which is the only one approved for reducing excess abdominal fat in HIV-infected patients with lipodystrophy. The condition affects about one third of patients with HIV or receiving HIV treatment. On February 27, 2015, the company announced an agreement with AOP Orphan Pharmaceuticals AG for the distribution and commercialization of EGRIFTA in several European countries. For 2014, Theratechnologies reported consolidated revenue of $6.7 million.
