This week in Canadian markets is ending with a renewed sense of tentativeness in the face of global turmoil.
Evergrande, China’s second-largest property developer, is on the brink of default, stirring up memories of the real-estate-fuelled 2008 financial crisis.
In the U.S., the government scrambled to pass spending legislation to prevent it from defaulting on its obligations for the first time in history, thus averting a potential stock market shock and downgraded credit rating.
Here at home, investors are doing their best to juggle inflation concerns amidst conflicting data. For example, while house and lumber prices seem to be levelling off, suggesting better days ahead for builders and young families, a Dalhousie University study recently found that Canadian food inflation is almost 100-per-cent above Statistics Canada’s official number.
There are also pandemic uncertainties to deal with, such as whether or not hard-hit industries will be able to pick themselves up in a less than favourable growth environment.
Energy producers, still unable to unload oil from shipping ports at 2019 levels, also face the rapid growth of ESG investing from retail and institutions alike.
Consumer discretionary is of course still struggling with foot traffic, wage increases and supply chain constraints.
Then we have financials, squeezed by tighter margins, with no prospects of higher interest rates to lessen their burden.
Reflecting these concerns, the S&P/TSX Composite Index recorded its first down month after seven consecutive months of gains. Perplexingly, bond yields have risen sharply in recent days, suggesting that some investors are looking beyond traditional stocks and bonds, perhaps to crypto and alternatives, to fund their goals.
That said, conditions are ripe for picking up small caps with decent prospects, with the CSE Composite Index sitting around 650, down from a February 2021 high of 1030.94, and the S&P/TSX Venture Composite Index having broken out of a five-year low at the beginning of the year.
With the investment landscape as it stands, our readers lent most of their attention to stories in cannabis, mining, industrials and technology over the past five trading days.
Let’s dive in.
E79 Resources (CSE:ESNR) drills more visible gold at the Happy Valley Gold Prospect
E79 Resources has now observed visible gold in 5 out of 7 deep exploration drill holes at its Happy Valley Gold Prospect in Victoria, Australia.
The company’s modelling shows a high-grade quartz vein extends at depth below the old Happy Valley Mine workings.
The property has documented historical production of 34,200 ounces of gold averaging ~31 g/t gold between 1866 – 1875.
Drilling and data assessment are ongoing.
E79 Resources is down by 1.04 per cent over the past week trading at $0.95 per share as of 10:49 am ET.
PyroGenesis (TSX:PYR) signs joint venture to repurpose aluminum dross residue
PyroGenesis has entered a joint venture to convert aluminum dross residue into chemical products.
The 50/50 agreement, with a leading residue processor, will see the company build and operate dross residue valorization facilities worldwide.
The first plant, within the Gulf region, is expected to convert 25,000 tonnes of aluminum dross residue per year into chemicals – like aluminum sulfate and ammonium sulfate – to be sold between US$200 and US$450 per tonne.
PyroGenesis is up by 1.98 per cent over the past week trading at $5.16 per share as of 12:25 pm ET.
Greenway Greenhouse Cannabis (CSE:GWAY) is now trading on the CSE
Greenway Greenhouse Cannabis commenced trading on the CSE at market open on September 21.
The company will remain majority-owned by Sunrite Greenhouses, an established cultivator of greenhouse-grown produce within the Del Fresco Group of companies.
Management believes it has the infrastructure and cost efficiencies in place to find firm footing in the nascent cannabis industry.
Greenway Greenhouse Cannabis is up by 5.26 per cent over the past week trading at $0.50 per share as of 11:19 am ET.
American Creek (TSXV:AMK) drilling at Treaty Creek expands Goldstorm Deposit
American Creek Resources has released the third set of results from its 2021 drill program at the Treaty Creek Project.
Highlights include 2.08 g/t gold equivalent over 79.5 m within 219 m grading 1.29 g/t gold equivalent.
Drilling also encountered near-surface mineralization at the Eureka Zone containing 1.13 g/t gold equivalent over 67.5 m.
American Creek Resources is down by 5.41 per cent over the past week trading at $0.18 per share as of 11:12 am ET.
Water Ways Technologies (TSXV:WWT) receives three new orders
Water Ways has secured three smart irrigation project orders totaling C$570,000.
The orders are destined for a blueberry operation in Mexico, a vegetable greenhouse in China and an apple grove in Ontario.
A recent ramp-up in demand is seeing the company export its irrigation expertise across the globe.
Water Ways Technologies is down by 4.08 per cent over the past week trading at $0.24 per share as of 11:15 am ET.
We’ll see you next Friday afternoon for a look back at the week that was in the Canadian markets.
