Energy Fuels to Acquire Base Resources, Creating a Global Leader in Critical Minerals Production

Futures for Canada's main stock index, TSX, rose on Thursday, supported by a climb in oil prices and anticipation of comments from U.S. Federal Reserve Chair Jerome Powell at an international conference. The energy sector is expected to rise following an uptick in oil prices. Powell is scheduled to speak at an International Monetary Fund (IMF) conference, while Fed's Thomas Barkin is also expected to discuss the outlook for the U.S. economy. Investors will also assess weekly jobless claims from the U.S. to gauge the strength of the labor market.

On Tuesday, Canada's main index, the S&P/TSX composite, inched up, led by gains in energy and materials stocks [a7150c97]. Materials stocks gained 0.9% after gold prices hit a record high level. Energy shares also gained 0.6%, pulled up by a 3.0% and 2.8% advance in gas companies Topaz Energy and Advantage Energy after their fourth-quarter results. Gains were capped by a 2.2% decline in rate-sensitive technology stocks ahead of the Bank of Canada's decision on monetary policy on Wednesday. U.S. Federal Reserve Chair Jerome Powell is due for congressional testimonies on Wednesday and Thursday. Investors are also tuned into the monthly U.S. labor market reports scheduled throughout the week.

Futures for Canada's main stock index edged up on Thursday, with gold continuing its upward march. Four brokerages raised price targets on Descartes Systems after its Q4 revenue beat estimates. The Canadian dollar rose 0.09 cents to 74.09 cents U.S. In January, Canada's merchandise imports decreased 3.8% and exports fell 1.7%. Building permits increased 13.5% from December to $10.8 billion. Stock futures inched down after the major averages posted their first winning session in three days. Victoria’s Secret plunged 29% after posting mixed quarterly results and disappointing guidance. Apple fell for a sixth consecutive day. Investors monitored Fed Chair Jerome Powell’s appearances on Capitol Hill for insight on interest rate cuts. Oil prices faded to $78.79 U.S. a barrel. Gold prices brightened to $2,166.40. [3fa52315] [865ad498] [a7150c97]

Shares of Total Energy Services Inc. (TSE:TOT) crossed above its 200-day moving average during trading on Friday after the company announced better than expected quarterly earnings. The stock has a 200-day moving average of C$8.79 and traded as high as C$9.72. Total Energy Services shares last traded at C$9.45, with a volume of 23,197 shares trading hands. The company reported C($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of C$0.35 by C($0.54). The business had revenue of C$213.76 million for the quarter, compared to analyst estimates of C$218.00 million. Total Energy Services had a return on equity of 11.67% and a net margin of 6.93%. The company also recently announced a quarterly dividend, which was paid on Monday, January 15th. Investors of record on Monday, January 15th were paid a dividend of $0.08 per share. The ex-dividend date of this dividend was Thursday, December 28th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 3.39%. Total Energy Services's payout ratio is 21.62%. Several equities analysts have commented on the stock. ATB Capital dropped their price target on shares of Total Energy Services from C$17.00 to C$16.75 in a research note on Tuesday, February 6th. Stifel Nicolaus increased their price target on shares of Total Energy Services from C$14.00 to C$15.00 and gave the company a 'buy' rating in a research note on Thursday, January 18th. [a327fd4f]

EITA Resources Bhd is extending its uptrend after breaking past the key resistance on high volume. The stock climbed above the 93.5 sen resistance to form a multi-month high. The trading volume has been increasing in tandem with its share price, showing that a bullish momentum is accelerating. The stock may travel towards the RM1 mark, followed by RM1.08. Breaching below the 88 sen support would negate the bullish set-up. [7d9d278d]

Citi has updated its financial model for Corporacion American Airports SA, resulting in a revised price target of $20.00, decreased from the previous $21.00. The adjustment reflects several factors, including an anticipated decline in Ecuadorian traffic for 2024, an increase in tax expenses, and a stronger fourth quarter 2023 EBITDA projection. The enhanced EBITDA forecast for Q4 2023 is attributed to inflation rates in Argentina outpacing the country's currency depreciation against the US dollar, which has led to a rise in dollar-denominated EBITDA. Citi has raised its earnings per share (EPS) estimate for the global airport operator for the fourth quarter of 2023 from $0.17 to $0.19. Citi's full-year EPS projections for Corporacion American Airports have also been updated. The estimates for the years 2023, 2024, and 2025 have been modified from $1.09, $1.40, and $3.05 to $1.11, $1.27, and $2.97, respectively. The lowered price target of $20.00 per share is derived from Citi's discounted cash flow (DCF) analysis, which factors in the aforementioned adjustments. Despite the reduction in the target price, the Buy rating indicates that Citi remains optimistic about the stock's potential performance. [8fb6b4f5]

UBS has lowered the price target for OPAL Fuels Inc's stock to $8.00 from $11.00, while maintaining a Buy rating. The adjustment is due to the removal of Investment Tax Credit (ITC) proceeds from the company's financial outlook. UBS has revised its adjusted EBITDA projections for 2024 to 2026 to $96 million, $142 million, and $160 million, respectively. OPAL's valuation is currently challenged by low liquidity, but the company is taking steps to address this issue. UBS remains optimistic about OPAL's future and suggests that the stock is trading near a lower-bound valuation. [a1fb937d]

BMO Capital Markets has lowered its price target for B2Gold (TSE:BTO) from C$6.50 to C$6.00. The firm maintains an 'outperform' rating on the stock. Several other research firms have also lowered their price targets for B2Gold, with the consensus rating being 'Buy' and an average target price of C$6.02. B2Gold operates as a gold producer with mines in Mali, the Philippines, and Namibia. The company reported C$0.10 EPS for the last quarter, missing analysts' estimates of C$0.11. B2Gold has a 52-week low of C$3.18 and a 52-week high of C$5.87. The stock is currently trading at C$3.39, with a 50-day moving average of C$3.63 and a 200-day moving average of C$4.03. The market cap is C$4.41 billion.

Truist Securities has revised its price target for Targa Resources to $120 from $105, while maintaining a Buy rating on the stock. The adjustment reflects the analyst's expectation for the company's growth to continue and potentially accelerate in the upcoming year. The positive outlook is based on a mix of board-approved projects and others that are expected to receive approval shortly. These initiatives, alongside robust organic activity in the Permian Basin, are anticipated to significantly enhance Targa's free cash flow (FCF), with estimates suggesting an increase of up to $1 billion next year compared to the projected $500 million-plus in 2023. The substantial increase in FCF is projected to support ongoing dividend growth, with Targa Resources recommended to boost its dividend by 50% this year. Truist Securities' revised price target signals confidence in Targa's ability to execute its growth strategy and deliver on its financial objectives. [24385f46]

Mizuho Securities has raised its price target for Antero Resources stock to $29.00 from $28.00, while maintaining a Neutral stance. The revision comes after an analysis that predicts an 8% EBITDA shortfall and a cash overspend for Q1 2024. Mizuho expects Antero Resources' total production volumes to fall about 1% short of market expectations but align closely with the company's full-year 2024 guidance. The analysis highlights that Antero Resources may achieve only a cash-flow breakeven point in 2024, limiting its ability to return cash to shareholders through buyback programs. Mizuho also notes that the company's financial flexibility is likely to be limited, despite positive trends in productivity and operational efficiency. The report suggests that Antero Resources' price target increase is based on a net asset value approach and reiterates a Neutral rating on the stock.

Timelo Investment Management Inc. has purchased 62,500 shares of Ero Copper Corp. (NYSE:ERO), valued at approximately $987,000. Ero Copper comprises 0.9% of Timelo Investment Management Inc.'s holdings, making it the 14th largest holding. Several other hedge funds and institutional investors have also recently added to or reduced their stakes in Ero Copper. The stock has a consensus rating of 'Hold' and a consensus price target of $24.00. Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil.

Energy Fuels Inc. has announced a transformational acquisition of Base Resources Limited, according to a press release by The Globe and Mail. The definitive Scheme Implementation Deed states that Energy Fuels will acquire 100% of the issued shares of Base Resources. The deal will be in consideration for 0.0260 Energy Fuels common shares and A$0.065 in cash per Base Resources ordinary share held, resulting in a total equity value of approximately A$375 million. The acquisition will be carried out through a scheme of arrangement under the Corporations Act. This acquisition positions Energy Fuels as a global leader in critical minerals production, with a focus on uranium, rare earth elements, and heavy mineral sands [0fac6392].