The Vancouver Business Thread

[LeftCoaster]

Hey all, sorry i have let my own thread die, but I just moved into a new condo, then moved down to Singapore for a 5 month stint here, so life has been kinda hectic. things seem to have settled down though, so I'll try and get this thing going again. Good thing is there wasn't really any major news to report during the doldrums of summer.

[LeftCoaster]

Capstone reports Q2 net profit of US$45.4 million
By The Canadian Press

VANCOUVER - Capstone Mining Corp. (TSX:CS), a Vancouver-based copper producer with mines in Canada and Mexico, reported a sharp jump in profits and sales in the second quarter as the company benefited from an investment sale and a big hedging gain.

Capstone said Tuesday it earned US$45.4 million or 23 cents a share for the three months ended June 30. That compared with earnings of $25.8 million or 14 cents a share for the same period a year earlier.

Sales revenues rose to $69.2 million from $50.2 million, said the company, which reports in American dollars.

The miner said it booked an $11 million gain on the sale of investments and $29.1 million in net gains on derivative contracts tied to metal prices.

Capstone's two mines are Cozamin in Mexico and Minto in Yukon. The company produces copper, silver, lead, zinc and gold.

"Capstone's operations continue to generate significant cash flow from operating activities which, combined with the sale of some investments, has significantly increased our financial strength," said Darren Pylot, Capstone's CEO.

"We benefit from low production costs and have a very strong balance sheet, with $141 million in unrestricted cash on June 30, 2010, which positions us well to grow both organically (through exploration and development), and through external transactions."

In trading on the TSX, Capstone shares fell two cents to close at $2.44.

http://www.canadianbusiness.com/mark...ntent=b4176600

[LeftCoaster]

Sun Gro Horticulture swings to red in second-quarter on foreign exchange loss
By The Canadian Press

VANCOUVER - Peat moss and potting mix producer Sun Gro Horticulture Income Fund (TSX:GRO.UN) recorded a second-quarter loss of $5.5 million as a big foreign exchange loss eroded both its top and bottom lines.

The Vancouver-based company's second quarter loss amounted to 25 cents per unit, falling from a $9 million, or 41 cents per unit, profit a year ago.

The company said Tuesday its second quarter revenues were down 13 per cent to $56.1 million from $64.9 million, due to a significantly stronger Canadian dollar.

With a higher loonie, Sun Gro's sales generated from its U.S. operations in American dollars were lower when translated into Canadian currency on the company's books.

Sales were also hit by lower volumes due to ongoing weakness in Sun Gro's sales of sand-based mixes, used on golf courses. There was also a slowdown in demand for peat moss, a gardening soil additive.

Volume growth in its core growing mix products helped to offset some of the decline.

Sun Gro produces and distributes peat and bark-based growing mixes to professional plant growers and retail customers through its 12 Canadian and 13 U.S. operating plants.

Units in the fund, which reported results after market closed Tuesday, closed down five cents at C$4.15 on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4177389

[LeftCoaster]

Fortress Paper reporters higher net income on recently acquired cellulose mill
By The Canadian Press

VANCOUVER - Fortress Paper Ltd. (TSX:FTP) says its adjusted second-quarter profit jumped nearly 60 per cent as the company reaped the benefits of its recently acquired cellulose mill.

The Vancouver-based paper manufacturer said Monday its adjusted profit amounted to 37 cents per share, compared to a profit of $2.7 million or 26 cents per share a year ago. Sales amounted to $60.5 million, up from $49.6 million in the second quarter of 2009.

Factoring in one-time items related to the acquisition of the mill in Thurso, Que., Fortress earned $40.4 million in the quarter.

The company said higher pulp prices led to increased costs at its German and Swiss mills, which were offset by "impressive sales and margin development" at the Thurso mill.

Fortress bought the Thurso mill for $3 million in March, and said it intends to spend approximately $153 million to convert it into a specialty cellulose operation.

Fortress makes wallpaper and paper for money, passport and visa papers.

Shares in the company, which reported after markets closed, fell 15 cents to $28.90 Monday on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4169302

[LeftCoaster]

Maxim Resources acquires Alberta oil properties for undisclosed amount
By The Canadian Press

VANCOUVER - Maxim Resources Inc. (TSXV:MXM) says it has signed an agreement with Alberta Oilsands Inc. (TSXV:AOS) to buy properties at the Leduc-Woodbend oilfield in Alberta for an undislosed amount.

The company announced Monday that the properties span 2,068 hectares and produced 45 to 50 barrels of oil per day.

In total there are nine producing wells and another 12 suspended wells that would need to be reviewed before it was determined if they would resume production, the company said.

Those decisions would me made during a review and due diligence process that must be completed by Sept. 15, according to the agreement.

Maxim shares were unchanged Monday morning at 25 cents on the TSX Venture Exchange.

http://www.canadianbusiness.com/mark...ntent=b4164031

[LeftCoaster]

Teck stock rises, investors unfazed by labour disruption at B.C. mine
By The Canadian Press

VANCOUVER - Teck Resources Ltd. (TSX:TCK.B) shares rose in early trading Monday, just days after the major metals miner reported a labour disruption at its Coal Mountain mine in southeastern British Columbia.

The Vancouver-based company announced Saturday that production at the mine was suspended when 170 members of the United Mineworkers of America went on strike. A labour agreement between Teck and the workers expired at the end of 2009.

Coal Mountain produces metallurgical and thermal coal, with annual production capacity of 2.7 million tonnes at the mine and 3.5 million tonnes at the preparation plant.

In June, an explosion in a coal dryer at the company's Greenhills coal mine in British Columbia shut down production from the operation.

Teck said that it expected that would not have a "significant impact" on its production.

Teck, with 9,000 employees, is Canada's largest publicly traded metals miner, with major zinc, copper and steelmaking coal operations. The company is a big exporter to Asia of coal used in steel industry blast furnaces.

Teck shares rose 39 cents or just over one per cent to $35.98 on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4163781

[WarrenC12]

Hundreds get pink slips at Burnaby warehouse
Dan Burritt Aug 10, 2010 15:28:45 PM

BURNABY (NEWS1130) - Hundreds of workers and some managers at a Burnaby warehouse which distributes Safeway products are being let go.

Shawn Lakusta with the Retail Wholesale Union says Safeway says the company that runs the warehouse, Summit Logistics, has effectively been replaced. He says Safeway told Summit last week it is contracting its warehousing to another company and Summit is out of business.

Lakusta says it appears Summit was outbid. "Summit didn't actually give us a reason (for the layoffs), other than they were told by Safeway they were no longer going to be the third-party warehouse. Our understanding is that there's been a bidding process going on for the past six months to a year," he says.

The plant is on 11th Ave. near Griffiths Dr. in South Burnaby. About 360 union members and 30 managers will be out of work by the end of February of next year.

http://www.news1130.com/news/local/a...naby-warehouse

[LeftCoaster]

Silver Wheaton profit nearly triples to US$53.3M amid jump in sales
By The Canadian Press

VANCOUVER - Silver Wheaton Corp. (TSX:SLW) says its second-quarter profit nearly tripled as silver sales soared and prices for the precious metal climbed.

The precious metals royalty company, which reports in U.S. dollars, said Wednesday it earned a record US$53.3 million or 16 cents per share in the second quarter, compared to $18.4 million or seven cents per share a year earlier.

Sales were $95.0 million, more than double sales of $41.4 million in the second quarter of 2009.

Silver Wheaton said its attributable silver equivalent production was 5.7 million ounces, an increase of 33 per cent over the comparable period of 2009. Silver equivalent sales were 5.1 million ounces, up 74 per cent from a year earlier.

In the mining industry, royalty companies act as investors, acquiring stakes of a mine's output without operating the property.

"Another very solid quarter resulted in record sales and earnings," stated CEO Peter Barnes.

"In the face of continued global economic uncertainty, the price of silver performed very well in the quarter, leading to record cash operating margins of US$14.45 per ounce, and clearly demonstrating the advantages of Silver Wheaton's business model of low fixed operating costs."

Silver Wheaton's production is expected to increase from 22.2 million ounces of silver and 20,000 ounces of gold this year to 38 million ounces of silver and 59,000 ounces of gold by 2013, as Goldcorp Inc.'s Penasquito project in Mexico and Barrick Gold Corp.'s (TSX:ABX) Pascua-Lama project, which straddles Argentina and Chile, come online.

Shares in Silver Wheaton, which reported after markets closed, lost 45 cents or 2.2 per cent to $20.13 in Wednesday trading on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4189608

[LeftCoaster]

Aurizon Mines posts lower profits in second quarter, as revenues increase
By The Canadian Press

VANCOUVER - Aurizon Mines Ltd. says its second-quarter net earnings dropped more than 60 per cent to $5.3 million as it booked a loss related to its hedging program.

The Vancouver-based gold miner said Thursday that profits were equal to three cents per share, versus $13.6 million, or eight cents per share, a year ago.

During the three month period ended June 30 it booked non-cash unrealized derivative losses of $4.3 million, compared to a gain of $12.9 million in the comparable period last year.

Revenue from mining operations increased to $50.5 million from $45.2 million.

Aurizon (TSX:ARZ) said it produced 38,527 ounces of gold with about 60 per cent of the sales delivered at an average price of US$907 per ounce, which is 14 per cent lower than the London fixed price.

"Our second-quarter financial results reflect improved performance at Casa Berardi as we gradually work through a lower grade area of the mine." said president and chief executive David Hall in a release.

"We anticipate completing the mining of the lower grade material by the end of this year, paving the way for increased gold production and lower costs per ounce in future years."

Shares of the company rose 36 cents to $5.89 on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4196413

[LeftCoaster]

Quadra FNX Mining returns to second quarter profit on higher revenues
By The Canadian Press

VANCOUVER - Quadra FNX Mining Ltd. pulled out of the red in the second quarter, posting a US$21.7-million profit despite enduring the impact of some production problems.

The Vancouver mining company, which reports in U.S. dollars, said that earnings amounted to 15 cents per share, turning around a year-ago loss of $7.3 million or eight cents per share.

Quadra FNX (TSX:QUX) said the results were helped by higher average copper prices, which contributed to lifting revenues to $169.1 million from $100.1 million.

The company is a combination of Quadra Mining Ltd. which merged with Toronto-based FNX Mining Co. Inc. during the quarter.

"The immediate focus following the merger has been the integration of the two companies and the optimization of the various projects and operations that are ramping up," said president and CEO Paul Blythe in a release.

"Our second-quarter financial results, while solid, reflect some of the production issues we experienced in the first half of the year, particularly at our two heap leach operations — the Carlota and Franke mines."

The Carlota mine in Arizona saw production affected after by heavy rain earlier this year while the Franke mine in Chile had trouble with equipment availability and that resulted in further recovery problems.

"This quarter certainly had some challenges, but, as a result of the merger, the combined company is stronger both financially and with respect to operational expertise," Blythe said.

Shares in the company were down 55 cents or 4.8 per cent at $11 in afternoon trading on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4195807

[LeftCoaster]

Tekmira's Q2 loss widens to $4.2M on lower revenues, higher expenses
By The Canadian Press

VANCOUVER - Drug developer Tekmira Pharmaceuticals Corp. says its second-quarter loss widened by 83 per cent as revenue tumbled and expenses rose.

The company, which specializes in gene-blocking treatments, said Thursday its loss for the period ended June 30 grew to $4.2 million from a year-earlier loss of $2.3 million. It did not disclose any per share information.

Vancouver-based Tekmira (TSX:TKM) saw its revenue from research and development collaborations, licensing fees and milestone payments drop nearly 40 per cent to $2.3 million from $3.8 million.

It said its revenue fluctuated due "to the variability in demand for its manufacturing services and timing of milestone receipts."

The company attributed the higher loss to a reduction of revenues and increased spending on the development of drugs for the treatment of elevated cholesterol and its anti-tumour drug in the treatment of cancer.

At the end of second quarter, the company had $18.2 million in cash.

Last month, Tekmira announced a $140 million contract with the U.S. Defence Department to develop a treatment against potential biological threats.

During noon trading, shares of the company fell five cents to $1.69 on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4195055

[LeftCoaster]

Glacier Media profit, revenues revive as ad revenue picks up alongside economy
By The Canadian Press

VANCOUVER - The economy's revival helped newspaper publisher Glacier Media Inc. (TSX:GVC) improve second-quarter profits to $9.2 million from a year-ago $8.7 million, helped by improvements in advertising revenue.

The Vancouver-based company reported net earnings of 10 cents per share, up from a year-earlier nine cents per share as overall revenue rose 5.7 per cent to $67.2 million from $63.5 million.

"The continued improvements in the overall economy and the markets in which Glacier does business as well as focused and effective sales efforts are driving resumed growth in Glacier's operations," the company said in a statement.

"While business and trade advertising tends to lag economic recovery more than local newspapers because advertisers tend to plan their marketing campaigns and budgets on more of an annual basis, overall results indicate continued improvements in the business and confidence of Glacier's customers."

Cash flow from operations, an internal measure of operational performance, rose to $12.9 million from $10.3 million in the same quarter of last year. Capital spending was cut to $1.3 million from $2.8 million.

Local newspaper revenue across the Western Canadian provinces was higher on a same-store basis.

"The economic recovery and concerted efforts by staff and management to advance performance continue to be reflected in the improvement in Glacier's operating results," the company said.

"Management is cautiously optimistic that the recovery will continue."

Glacier Media publishes weekly and daily newspapers across Canada as well as business and technical publications.

Shares in the company were unchanged at $2.40 in early trading on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4202947

[LeftCoaster]

Imperial Metals posts second-quarter profit of $13M, up from loss of $6.6M
By The Canadian Press

VANCOUVER - Imperial Metals Corp. (TSX:III) reported a second-quarter profit of $13 million on Friday, up from a loss of $6.6 million in the same quarter last year.

Earnings per share were 36 cents in the quarter ended June 30, versus a loss of 20 cents a share in the same period in 2009.

Revenues increased to $53.5 million from $48.9 million, the company said in a news release.

Meanwhile, the company said that copper prices, which dipped in the second quarter, have rebounded significantly and cash flow from operations is funding extensive exploration programs at the British Columbia mines of Red Chris, Mount Polley and at the Sterling mine in Nevada.

Imperial said throughput averaged 22,460 tonnes a day at its Mount Polley mine, a record quarterly average.

http://www.canadianbusiness.com/mark...ntent=b4203987

[LeftCoaster]

Fortuna Silver Mines books Q2 profit of US$6M, reverses loss; revenue up
By The Canadian Press

VANCOUVER - Metals producer Fortuna Silver Mines Inc. credits strong operating income, a commodity contract gain and stock-based compensation recovery for its return to profitability in the second quarter of fiscal 2010.

Vancouver-based Fortuna (TSX:FVI), which reports in U.S. dollars, booked earnings of US$6 million or five cents a share in the April-June period, backing away from a loss of $1.2 million or a penny a share in the same quarter a year ago.

Revenue rose 13 per cent to $14.6 million from $12.9 million.

The company said in a release Friday that the increase was driven by strong operating income, a commodity contract gain versus a loss last year and a stock-based compensation recovery instead of a charge the year before.

Fortuna also attributed the improved results to "significantly higher metal prices" as well as added copper production, offset by lower zinc and lead production.

President and chief executive Jorge Ganoza was upbeat about the company's future in a news release.

"With the commissioning of our second mine on schedule and on budget for the third quarter of 2011,Fortuna will be in a position to produce seven million silver equivalent ounces annually plus base metals credits," Ganoza said.

Fortuna produced 470,310 ounces of silver in the most recent quarter, up five per cent from the same period last year.

Shares of Fortuna Silver Mines slipped seven cents to $2.33 on the Toronto Stock Exchange during noon trading Friday.

http://www.canadianbusiness.com/mark...ntent=b4204511

[LeftCoaster]

Airframe builder Avcorp loses $2.3M but predicts revenue growth in second half
By The Canadian Press

VANCOUVER - Aircraft frame manufacturer Avcorp (TSX:AVP) says it lost $2.3 million in the second quarter but expects revenue to grow in the second half of the year.

The Vancouver-based company said its loss amounted to one cent per share, compared to a small profit of $65,000 or nil per share a year earlier. Revenue was $18.7 million, up 16 per cent from $16.2 million in the second quarter of 2009.

Avcorp said the second quarter of last year was boosted by a $4.0-million foreign-exchange gain.

The company said it expects "modest revenue growth" in the second half of the year as some programs re-start and the production rate at others increases. It said revenues will grow further in 2011 as it begins producing airframes for BAE Systems Operations Ltd.

Avcorp wasn't in compliance with covenants on some of its debt as of June 30 but has reached agreements with its lenders, the company said.

Avcorp builds airframe structures for major aircraft companies like Boeing, Bombardier Inc. (TSX:BBD.B) and Cessna. It employs more than 500 people.

Shares in the company, which reported after markets closed, were unchanged at seven cents Friday on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b4208741

[LeftCoaster]

First Majestic Silver Corp. reports $8.9 million in net income in Q2
By The Canadian Press

VANCOUVER - First Majestic Silver Corp. (TSX:FR) is reporting net income after taxes of $8.9 million in the second quarter, or 10 cents a share in the second quarter.

That compare with net income of $1 million or one cent a share in the corresponding quarter of 2009.

First Majestic attributes much of its second quarter growth to a 25 per cent increase in silver ounces sold compared to the first quarter.

The increase in ounces sold are due to the launch of the new cyanidation plant at its La Encantada and La Parrilla silver mines in Mexico.

Both mines combined contributed a 86 per cent increase in silver production compared to the second quarter of 2009.

In the quarter, the company sold almost 1.7 million ounces of silver equivalent at an average price of US$18.68 per ounce.

http://www.canadianbusiness.com/mark...ntent=b4222775

[LeftCoaster]

Huntingdon REIT boosts second quarter operating profit on higher rental revenues
By The Canadian Press

RICHMOND, B.C. - Huntingdon Real Estate Investment Trust says its second-quarter profits have increased, as rental revenues strengthened over the same time last year.

The trust, which owns interests in a diversified portfolio of commercial properties, reported a $11.8-million profit from operations, or 74 cents per unit.

That compares to a $9.6-million profit a year ago, or 60 cents per unit for the same three months ended June 30 last year.

Total rental revenue was $19 million, an increase from $13.8 million.

Funds from operations, a widely-used measure of the financial performance of real estate companies, were $4.3 million from $1.9 million.

"We continue to execute on our strategy of deleveraging the balance sheet and disposing of non-core properties," said chief executive Zachary George in a release.

"Looking forward, we expect to be in a position to pursue acquisitions that offer superior returns and are accretive to unitholder value."

Huntingdon REIT (TSX:HNT.UN) has 76 income producing properties

http://www.canadianbusiness.com/mark...ntent=b4223670

[LeftCoaster]

Glentel to buy 128-store Verizon Wireless retailer for US$50.45 million
By The Canadian Press

BURNABY, B.C. - Canadian retailer Glentel Inc. (TSX:GLN) has reached an agreement to buy majority ownership of a 128-store Verizon Wireless retailer in the United States.

Glentel currently operates in 280 locations across Canada under the Glentel Wireless, WirelessWave and Telephone Booth banners, among others.

The Vancouver-area company will pay US$50.45 million for 81.5 per cent of Diamond Wireless LLC of Salt Lake City.

Glentel has also agreed to buy the remaining 18.5 per cent of Diamond under certain conditions.

Diamond's management team, including co-founder Troy Crosland, will continue to manage the U.S. operation, which has 750 associates working in 11 states.

http://www.canadianbusiness.com/mark...ntent=b4223873

[LeftCoaster]

QHR Technologies has Q2 profit of $308,166; revenue up 90 per cent to $5.1M
By The Canadian Press

VANCOUVER - QHR Technologies (TSXV:QHR) reports a profit of $308,166 or one cent per share for its second quarter, versus $212,614 or one cent a share for the same period last year. Revenue for the workforce software management company was $5.1 million.

http://www.canadianbusiness.com/mark...ntent=b4224249

[SpikePhanta]

Thanks for updating the thread!