The week in Canadian markets is ending with earnings season in full swing as the state of the economy comes into view.
Shares of cannabis leader Canopy Growth fell after it reported disappointing quarterly results, including imminent layoffs in Niagara, as the company struggles to respond to intense competition saturating the industry.
Automotive supplier Magna also fell on lower-than-expected profits due to the ongoing semiconductor chip shortage as well as uncertain engineering service contracts with the floundering Evergrande.
In more positive news, the Big Six banks, and insurers such as Manulife, are set for a rush of positive sentiment as Canada’s Office of the Superintendent of Financial Institutions is expected to lift capital restrictions meant to protect against pandemic-related defaults. This paves the way for these TSX mainstays to buy back stock and raise dividends for the first time since March 2020, satiating those who rely on portfolio income for their spending needs.
While our banks have reasons to be optimistic, the situation isn’t as rosy for everyday Canadians for whom rising inflation is more than just a number plotted on a graph chart. While the country added 31,000 jobs in October, according to Statistics Canada, more than 25-per-cent of those unemployed haven’t had a job for more than six months. Pre-pandemic, that number was closer to 15 per cent. Provinces struggling the most with COVID’s fourth wave, like Alberta and Saskatchewan, lost 9,000 and 6,500 jobs, respectively.
Gas prices, for one, are primed for continued volatility after OPEC’s meeting yesterday, where Saudi Energy Minister Prince Abdulaziz bin Salman proclaimed, “Oil is not the problem. The problem is the energy complex is going through havoc and hell.” The organization approved a modest increase of 400,000 barrels in December, which is unlikely to keep up with demand as global supply chains return to normal.
Competition among telecom providers, which affects consumer pricing, is also squarely in focus as the B.C. Supreme Court prepares its ruling on the rightful Board of Rogers Communications. In one corner, we have Edward Rogers, who is seeking to oust CEO Joe Natale and any directors who disagree with his decision without shareholder approval. In the other, we have Edward’s mother, Loretta, two sisters and a number of dissenting directors who have taken umbrage with his freewheeling ways. Investors will finally have their answer around 5:00 pm ET.
In the meantime, Market Herald Canada readers have shown a keen interest in opportunities in mining, health care and psychedelics over the past five days. Let’s take a closer look.
Datametrex (TSXV:DM) subsidiary launches in-person patient care
Datametrex subsidiary Medi-Call MD has launched in-person patient care services in Vancouver.
Medi-Call is an enhanced telemedicine company providing technology-driven e-health and m-health care services.
Certified physicians are now able to examine patients via Medi-Call’s mobile app and be dispatched to patients’ residences or places of work to administer additional care.
The service, which will eventually expand across the country, aims to make health care accessible to people in rural or isolated communities, as well as to those with limited time, mobility or transportation choices.
Datametrex is down by 5.56 per cent over the past week trading at $0.17 per share as of 1:40 pm ET.
Alianza Minerals (TSXV:ANZ) intersects high-grade silver mineralization at the Haldane Silver Project
Alianza Minerals has reported additional results from the 2021 drilling campaign on its Haldane high-grade silver property.
Hole HLD21-25 has further extended the West Fault’s mineralization by 62 m down dip with an intersection averaging 1,107 g/t silver, 6.98 per cent lead and 3.97 per cent zinc over 1.6 m.
The 8,579-hectare property is located in the western portion of the Keno Hill Silver District, 25 km west of Keno City, YT.
Alianza Minerals is down by 5.88 per cent over the past week trading at $0.08 per share as of 2:24 pm ET.
Group Ten Metals (TSXV:PGE) announces inaugural MRE for the Stillwater West PGE-Ni-Cu-Co + Au Project
Group Ten Metals has released results from the first independent NI 43-101 mineral resource estimate for its Stillwater West Project in Montana.
Highlights include inferred mineral resources totaling 2.4 million ounces of palladium, platinum, rhodium and gold, plus 1.1 billion pounds of nickel, copper and cobalt, in a constrained model totaling 157 million tons.
The company is advancing the project toward becoming a source of low-carbon metals critical to the electrification movement tied to catalytic converters, fuel cells and the production of green hydrogen.
Group Ten Metals is up by 11.11 per cent over the past week trading at $0.35 per share as of 1:49 pm ET.
LUXXFOLIO Holdings (CSE:LUXX) provides operational update
LUXXFOLIO’s updates include a 103-per-cent month-over-month increase in mining revenues and a 24-per-cent increase in Bitcoin reserves.
Monthly revenues were C$1,625,000 compared to C$800,000 in September.
Bitcoin reserves stood at 42 as compared to 34 in September.
Company executives will attend the World Digital Mining Summit in Dubai, hosted by Bitmain, from November 9-10, 2021.
LUXXFOLIO Holdings is up by 5.38 per cent over the past week trading at $0.98 per share as of 2:16 pm ET.
Filament Health (NEO:FH) receives FDA authorization for psychedelic clinical trial
Filament Health has received FDA authorization to initiate the first clinical trial using naturally-sourced psychedelic substances.
The approval is also the first involving direct administration of psilocin rather than its prodrug psilocybin.
The phase 1 trial is led by the Translational Psychedelic Research Program at the University of California San Francisco.
Filament Health is up by 20 per cent over the past week trading at $0.33 per share as of 2:19 pm ET.
Tune in next Friday afternoon for your recap of the week that was in Canadian markets.