[LeftCoaster]

I’ve been wanting to start this thread to quite some time, and given the recent discussion in some threads I have been spurred into starting it. This is a thread to discuss any business news and development in Vancouver and BC, since the two are inexplicitly related. Please feel free to post any news articles, forecasts, opinions or information regarding Vancouver firms or industries.

Also since this is a real estate forum try to keep the discussion of actual projects, despite the fact that they are indeed business, to the appropriate thread. I envision this thread more for all of the businesses which make up Vancouver's economy that are not already covered here.

Also if a mod feels its worthy I think this kind of topic should be stickied.

[LeftCoaster]

Osisko Mining to buy Brett Resources in $372-million stock deal
By The Canadian Press

MONTREAL - Osisko Mining Corp. (TSX:OSK) plans to acquire Hammond Reef gold project in Ontario through the friendly takeover of Brett Resources Inc. of Vancouver (TSXV:BBR) in an all-stock deal valued at $372 million.

Brett's shareholders would own about 11 per cent of Osisko if they accept the friendly offer, announced Monday.

Osisko is offering 0.34 of one of its common shares for each share of Brett. Based on Friday's closing stock prices, Osisko's offer is worth $2.92 per share - a premium to Brett's market price of $2.09 on the TSX Venture Exchange.

Osisko's primary property is the Canadian Malartic gold project in Quebec, which is scheduled for start-up in the second quarter of 2011 with production of 688,000 ounces of gold in 2012.

Brett's Hammond Reef gold project near Thunder Bay, Ont., has the potential to add 463,000 ounces of gold production per year, initially.

"Osisko is very pleased to make this offer to the shareholders of Brett to join us in our quest towards creating Canada's newest premier mid-tier gold producer," Osisko chief executive Sean Roosen said in a statement.

"The addition of potential future production from the Hammond Reef project to Canadian Malartic could well see us become a million ounce per year producer within five years."

Ron Netolitzky, chairman of Brett, said the company's board and management is in full and unanimous support of the offer from Osisko, which is conditional on at least two-thirds of Brett's shares being tendered.

"Hammond Reef has been a company changing asset for Brett, and our team has progressed the property through the value creation chain to the point where it has garnered what we feel is the necessary attention of a serious partner to help us take it forward to potential development," Netolitzky said.

"By combining forces with the industry leading team from Osisko, we feel that we are offering the shareholders of Brett the opportunity to maximize value through our combined efforts."

Brett's board has agreed to pay Osisko a $17.5-million termination fee if the transaction isn't completed in certain circumstances. The equivalent of 19.6 per cent of Brett's shares have been tendered so far.

http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b221876319

[LeftCoaster]

Haemacure sale of assets to Angiotech clears another hurdle
By The Canadian Press

Story Tools

MONTREAL - Quebec's superior court has given its approval for Haemacure Corp. (TSX:HAE) to sell its assets to Angiotech Pharmaceuticals, Inc. (TSX:ANP).

Haemacure, a medical technology developer based in Montreal, filed for bankruptcy in January in Canada and the United States.

It has already received approval for the plan from the U.S. court.

Vancouver-based Angiotech, a secured creditor, agreed to provide financing for both the insolvency proceedings and Haemacure's daily operations.

Angiotech and Haemacure partnered last year to develop Haemacure's sealant and thrombin products for use in surgeries and other medical procedures.

The asset sale is expected to be completed before April 19.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b223916226

[LeftCoaster]

Big Stick Media fiscal 2009 loss narrows to $2.2 million from $3.9 million
By The Canadian Press

VANCOUVER, B.C. - Big Stick Media Corp. said Monday its full-year loss narrowed to $2.2 million versus a loss of $3.9 million in 2008.

The Vancouver-based sports media company did not report per share data and revenue.

It said the loss for the 12-month period ended Nov. 30 included non-cash items such as writedowns on asset impairments, amortization expenses, stock option costs, accredited interest expense, income tax recoveries, losses on asset dispositions and net foreign exchange gains losses.

Big Stick Media (TSXV:BSM) owns and operates sports media assets, including websites, client-server software, publications, television and radio shows and call centres.

Shares of the company last traded Friday at the Toronto Stock Exchange at 8.5 cents.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b222150121

[LeftCoaster]

Reserves at jointly owned Donlin Creek project increase to 33.6M ounces: NovaGold
By The Canadian Press

VANCOUVER, B.C. - Higher gold reserves are being reported at the Donlin Creek project in Alaska, jointly owned by NovaGold Resources Inc. and Barrick Gold Corp., as a result of a new price estimates and additional drilling results.

NovaGold (TSX:NG) said Monday the analysis raises reserve estimates 15 per cent to 33.6 million ounces of gold.

NovaGold said its 50 per cent interest in the mine totals 16.8 million ounces of gold reserves, with an additional 2.1 million ounces of measured and indicated resources and 2.2 million ounces of inferred resources.

The reserves and resources have been estimated using long-term gold price assumptions of $825 and $900 per ounce, respectively, NovaGold said. It also includes additional drilling results as well as an increase in long-term gold price assumptions.

The increase in reserves is expect to extend the mine's producing life by four years to 25 years.

Donlin Creek is one of the largest known undeveloped gold deposits in the world. Vancouver-based NovaGold owns precious metals projects in the U.S. and British Columbia, while Barrick (TSX:ABX) is the world's largest gold producer with mines in Canada, the U.S., Peru, Argentina, Chile, Tanzania, Australia and Papua New Guinea.

Shares in NovaGold fell six cents to $7.50 in morning trading on the Toronto Stock Exchange. Barrick shares lost 37 cents to $39.77.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b221077216

[osirisboy]

I’ve been wanting to start this thread to quite some time, and given the recent discussion in some threads I have been spurred into starting it. This is a thread to discuss any business news and development in Vancouver and BC, since the two are inexplicitly related. Please feel free to post any news articles, forecasts, opinions or information regarding Vancouver firms or industries.

Also since this is a real estate forum try to keep the discussion of actual projects, despite the fact that they are indeed business, to the appropriate thread. I envision this thread more for all of the businesses which make up Vancouver's economy that are not already covered here.

This is a great idea, Thanks Leftcoaster

[vitc]

Yes, thanks Leftcoaster...great idea!!

[LeftCoaster]

No problem guys... hopefully some people have a use for it. And please post articles or anything when you run across them.

I will mainly be posting Canadian Business articles because I read them daily on my blackberry on the way to school... I'll try and throw some variety in when I can which will mainly be economist articles and the globe and mail, when i have the time to read them.

[LeftCoaster]

Cummins Westport gets contract in India to supply 460 natural gas engines
By The Canadian Press

VANCOUVER Cummins Westport Inc., a Canadian-based supplier of alternative fuel engines, is the beneficiary of some economic stimulus spending in India.

The company, a joint venture of Westport Innovations Inc. (TSX:WPT) and U.S.-based Cummins Inc. (NYSE:CMI), said Wednesday that its affiliate in India has received purchase orders for 460 natural gas engines.

The B Gas Plus and B Gas International engines, powered by compressed natural gas, are licensed by Cummins Westport and manufactured by the affiliate, Cummins India Ltd.

"India continues to build its world leading eco-friendly transit fleet," Cummins Westport president Roe East said in a news release.

"We are seeing orders from new customers in the region who have recognized our natural gas engines as best in class. Helping increase natural gas engine proliferation, the Indian government is getting behind the push for emission reductions with stimulus funding."

The New Delhi government unveiled a transport stimulus package in February 2009, to provide central funding to purchase buses for urban transport systems.

India's Ministry of Urban Development is providing financial assistance for purchasing public transport buses as part of a national effort to reduce the use of private vehicles and control congestion.

According to NGVAmerica, the New Delhi Natural Gas Vehicle Program has halved the air pollution in India's capital compared with 10 years ago.

Westport Innovations shares were up 20 cents at $16.95 in early afternoon trading Wednesday on the Toronto Stock Exchange. Cummins Inc. shares were up 14 cents at $62.49 on the New York Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b243200423

[LeftCoaster]

Lululemon reports $28.4 million profit, higher sales in Q4
By The Canadian Press

VANCOUVER, B.C. - Lululemon Athletica Inc. (TSX:LLL) says its profit more than doubled in its latest quarter, rising to $28.4 million or 40 cents per share from $10.9 million or 16 cents a share in the year-earlier period.

The specialty clothing retailer's revenue also improved, rising to $160.6 million from $103.9 million.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b254146926

[WarrenC12]

http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b254146926

Stock up 11% this morning after a few weeks of good gains. :D :D :D

[LeftCoaster]

It's too bad Lionsgate moved most of their operations to LA... would be nice to have a legitimate Canadian studio.

Lions Gate pulls out of bidding for MGM after being asked to up bid
By The Associated Press

LOS ANGELES - Lions Gate Entertainment has pulled out of the bidding for the beleaguered Metro-Goldwyn-Mayer movie studio after it was told its acquisition offer was inadequate and was asked to raise it.

That's according to a person with knowledge of the matter. The person spoke on condition of anonymity because the bids are meant to be confidential.

The person says Canadian-American Lions Gate was not prepared to pay more than its bid of between $1.3 billion and $1.4 billion and pulled out of the process.

The withdrawal, reported earlier by The Wall Street Journal, means Time Warner's bid to acquire the iconic Hollywood studio for $1.5 billion may be MGM's best chance to avoid foreclosure by its creditors.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b255936231

[ozonemania]

Don't think this conference is anything new, but I didn't know that there were that many participants.

The CBC Show Dragon's Den is doing auditions for their upcoming shows at the trade show on Friday, I believe.

http://www.theglobeandmail.com/news/national/british-columbia/globe-2010-green-business-conference-opens-in-vancouver/article1510897/

Globe 2010 'green-business' conference opens in Vancouver

David Ebner
Vancouver, BC — Globe and Mail update
Published on Wednesday, Mar. 24, 2010 3:27PM EDT

The City of Vancouver announced another green initiative Wednesday morning as it works to become the world's greenest city by 2020. Mayor Gregor Robertson was speaking at the opening of the Globe 2010, the biennial conference and trade show billed as the continent's largest and most important green-business gathering.

Mayor Robertson unveiled a program called the Corporate Climate Leaders Program. Working with Climate Smart, a Vancouver-based group created by Ecotrust Canada, the city will help businesses save money by cutting greenhouse gas emissions and tell their customers about it.

“If you're a Vancouver business and you want to go green, city hall is ready to partner with you to make it happen,” said Mayor Robertson.

Mayor Robertson was speaking on a panel to a packed conference hall that also featured Frank Wouters, the chief executive officer of Abu Dhabi's renewable power company which, Mr. Wouters announced, is looking to invest some of a new $265-million (U.S.) green fund in North American companies.

“We're exploring,” Mr. Wouters said in an interview after the panel discussion.

Abu Dhabi has already invested $250-million in clean technology, mostly in small chunks and often in solar power. However, no money has yet been put into companies in Canada or the United States, and Mr. Wouters said he wants to partner with local companies.

“We would not go alone,” said Mr. Wouters, who added that part of the strategy is to connect with expertise that can benefit Abu Dhabi.

B.C. has numerous companies involved in solar and wind, two areas in which Abu Dhabi has particular interest.

Globe 2010 – celebrating its 20th anniversary – takes place Wednesday, Thursday and Friday, and is expected to attract more than 10,000 participants from almost 100 countries.

The range of participants runs from large companies such as General Electric Co. and oil sands developer Cenovus Energy to many small firms and numerous governments, including many Canadian provinces and European countries.

Abu Dhabi's Masdar Power is the lead sponsor of Globe 2010, aiming to greatly increase its profile in North American green circles.

Abu Dhabi is one of the emirates that comprise the United Arab Emirates in the Persian Gulf and is the seat of the Emirati royal family and the UAE's government. Abu Dhabi is working to build a clean-technology hub in the city, to complement its massive oil holdings. Unlike the better-known emriate of Dubai, which has no significant oil and is building an international business and financial centre, Abu Dhabi controls roughly 10 per cent of the planet's oil reserves.

Atop Abu Dhabi's green ambitions is “Masdar City,” a totally green city to be built outside Central Abu Dhabi near the city's airport. Masdar City “aims to be the world's first zero carbon, zero waste, purpose-built modern city,” according to Abu Dhabi marketing material.

The city's hub would be a science and technology institute, with the goal of establishing a clean-technology cluster. To attract businesses, Masdar City will be a “special economic zone” where there will be no taxes, either for corporations, individuals or imports.

[LeftCoaster]

^ Cool stuff, I hope more BC entrepreneurs can get involved in green tech... there's a ton of money in it.

Dragon Pharmaceutical signs deal to be taken private by chairman and CEO
By The Canadian Press

VANCOUVER, B.C. - Dragon Pharmaceutical Inc. (TSX:DDD) said Friday it has signed a deal to be taken private by its chairman and chief executive Yanlin Han.

Han, who is the company's largest shareholder with a 37.95 per cent stake, will pay 82 cents per share for the share he does not already own.

The deal values the company at about $55 million.

The offer Friday tops an offer Han made in January of 80 cents per share.

Dragon Pharmaceutical is a manufacturer and distributor of a broad line of antibiotic products.

Shares in the company were down two cents at 62 cents on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b264784528

[LeftCoaster]

Jim Pattison increases stake in lumber producer Canfor as company buys shares
By The Canadian Press

VANCOUVER, B.C. - Jim Pattison has increased his stake in lumber producer Canfor Corp. to roughly 31 per cent with the acquisition of 104,700 by Great Pacific Capital Corp.

Pattison said the acquisition brings the total holdings of Great Pacific to 17,761,550 shares of Canfor. Great Pacific together with Great Pacific Industries Inc. and 4123221 Canada Inc., two other companies owned by Pattison, hold 44.2 million shares of Canfor.

"The shares of Canfor have been purchased and are presently being held for investment purposes," Pattison said in a statement.

Canfor shares closed down three cents at $9.32 on the Toronto Stock Exchange on Monday.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b292723222

[Locked In]

Vancouver ranked fifth among major cities for business competitiveness: report


By Gordon Hamilton, Vancouver SunMarch 31, 2010

Vancouver’s competitive advantage over the major cities of the United States has jumped significantly in the last two years, according to a report by international consultants KPMG.

Vancouver ranks fifth among 41 major international cities in terms of business competitiveness in the report Competitive Alternatives. Two years ago, Vancouver ranked No. 21. The KPMG report examines business competitiveness in 10 industrialized countries. Montreal ranks third and Toronto ranks sixth.

Vancouver’s nearest competitor, Seattle, ranks No. 29.

Of the 10 nations examined in the report, Canada ranked second only to Mexico. The Netherlands was No. 3 and the U. S. No. 8.

Glenn Mair, director of MMK Consulting in Vancouver, a co-author of the report, said in an interview that relatively lower labour, energy and tax costs in Canada were a large driver of the country’s competitive business environment.

Canada’s stronger dollar is not having that big an impact on business costs, Mair said, because of significantly lower costs for labour taxes and energy.

“Over the long term trend, what we see is labour costs in Canada have grown moderately relative to some other countries, particularly the U.S. in boom years. Energy costs in Canada continue to be reasonable or have actually improved compared to some other countries.

“And over the last 10 years, the tax environment in Canada has changed quite significantly with a whole variety of corporate income tax, capital tax and sales tax changes at the federal level and among many of the provinces.

“That has really re-shaped Canada’s tax environment from being a moderate to high tax country 10 years ago to actually being, relatively, one of the lower tax countries among the G7 countries today,” Mair said.

Much of Vancouver’s advantage stems from the overall Canadian advantage, but provincial corporate income tax cuts and the upcoming HST have helped improve the city’s business climate, Mair said.

Those benefits apply to smaller cities in the province, such as Prince George, he said, which as lower business costs than similarly-sized Western U.S. cities. The study also compared 71 other cities with smaller populations.

The study is forward-looking, he said. It measures the costs of establishing a new business in each place over a 10-year time horizon, which accounts for the HST advantage showing up in the report. The business benefit of the HST, which comes into effect in July, is that it is a refundable value-added tax. Mair said all other nations in the survey have refundable value-added tax for businesses, except the U.S. which has non-refundable value added taxes.

The Canadian business advantage boosted Montreal, which was No. 2, and Toronto, which was No. 6.

The survey was among cities with a population over two million in the 10 nations surveyed.

The study uses the four largest U.S. cities, New York, Los Angeles, Chicago and Dallas-Fort Worth to form a baseline of business costs against which business costs in other countries and cities are compared. Those average costs in those four cities are given a value of 100. Vancouver’s rating was 94.9.

Monterrey, Mexico, has the biggest costs advantage, with a score of 81.5. Tokyo, Japan, has the worst competitive advantage at 108.9.

The survey examines 26 cost components like labour, taxes, real estate and utilities.

KPMG managing partner Elio Luongo, said in a news release that Vancouver is positioned to grow because of Olympic Games exposure and growth in Asia. Having a competitive edge over other major other cities is an added advantage, he said.

ghamilton@vancouversun.com

© Copyright (c) The Vancouver Sun

Source: Vancouver Sun (http://www.vancouversun.com/news/Vancouver+ranked+fifth+among+major+cities+business+competitiveness+report/2746374/story.html)

[LeftCoaster]

Interesting, I'm surprised Vancouver is so low compared to its US counterparts given its high consumable and land costs, but I guess it is more than offset by favourable corporate taxe rates?

Some small business consolidation in Vancouver:
Premium Brands pays $5.6 million for 80 per cent of Duso's pasta business
By The Canadian Press

VANCOUVER, B.C. - Premium Brands Holdings Corporation (TSX:PBH) is acquiring an 80 per cent interest in Duso's Enterprises Ltd., a Vancouver-based maker of fresh pastas and sauces, from the founders in a $5.6-million cash, stock and debt transaction.

The payment consists of $4 million in cash, 69,252 shares of Premium Brands and a $600,000 note that's due in three years.

Premium Brands will also help Duso's fund the purchase of approximately $1.0 million in state-of-the-art pasta making equipment.

"This transaction is based on our strategy of offering successful entrepreneurs customized ownership solutions that address their estate planning needs while also providing their business with the resources needed for continued growth," said George Paleologou, the president and chief executive of Premium Brands.

"Founders Mauro and George Duso have done an exceptional job building Duso's from the ground up and we are very pleased to become Mauro's partner as his brother George nears retirement later this year."

Premium Brands is a producer, marketer and distributor of branded specialty food products.

Its family of brands include Grimm's, Harvest, McSweeney's, Bread Garden Express, Hygaard, Hempler's, Quality Fast Foods, Gloria's Best of Fresh, Harlan's, Creekside Bakehouse, Centennial Foodservice and B&C Foods

Premium Brands has operations in British Columbia, Alberta, Saskatchewan, Manitoba and Washington State.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b312388321

[LeftCoaster]

Ivanhoe's investment agreement with Mongolian government takes effect
By The Canadian Press
ULAANBAATAR, Mongolia - An investment agreement between Ivanhoe Mines (TSX:IVN) and the Mongolian government for a massive copper and gold project has taken full legal effect.

Mongolia announced Wednesday that procedural and administrative conditions in the agreement had been satisfied and that it will take effect immediately.

The agreement, signed in October, will see the Mongolian government take a 34 per cent interest in the Oyu Tolgoi copper-gold project.

Ivanhoe owns the other 66 per cent and international mining giant Rio Tinto PLC (NYSE:RTP) also holds a stake through its ownership of about 22 per cent of Ivanhoe. Rio Tinto holds options to increase that stake to 46.6 per cent over the next 19 months.

Ivanhoe said the finalized agreement "creates a stable and long-term regulatory, fiscal and legal environment for the project."

"After nine years of discoveries at Oyu Tolgoi, a big piece of the future of copper and gold in Asia is poised to become a reality," said Ivanhoe executive chairman Robert Friedland.

"With this investment agreement taking full effect, we now have a long-term partnership and a definitive blueprint to start building that future at Oyu Tolgoi," Friedland said.

Ivanhoe and Rio Tinto have approved a US$758-million budget to launch full-scale construction of Oyu Tolgoi by the second quarter of this year. Commercial production is expected to begin in 2013.

In addition to Oyu Tolgoi, Ivanhoe has interests in coal, gold and copper resources in Mongolia, Australia and Kazakhstan.

Shares in Ivanhoe gained 39 cents or 2.25 per cent to $17.71 in early afternoon trading Wednesday on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b312976123

[LeftCoaster]

Fronteer, Teck plan $2.7-million drilling plan at copper, gold project in Turkey
By The Canadian Press
Article Tools

VANCOUVER, B.C. - Fronteer Development Group Inc. (TSX:FRG) says a $2.7-million drill program is planned for this year at Halilaga, a copper and gold deposit in northwestern Turkey.

The project is a joint venture between Fronteer and a subsidiary of Teck Resources (TSX:TCK.B), which owns 60 per cent of the venture and is the project operator.

TMST, the Teck subsidiary, previously conducted an 18-hole drilling program from September to mid-January and plans to begin additional drilling in June, Fronteer said. A first resource estimate for the project is expected by the end of 2010.

Fronteer's other holdings are gold projects in Nevada.

"Halilaga provides Fronteer with real upside exposure to a significant copper-gold project in a district with excellent infrastructure," Mark O'Dea, Fronteer's president and CEO, said in a statement.

"Porphyry copper-gold deposits have become an increasingly important part of global gold production because of their size, long mine life and strong cash flow potential."
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b052820622

[Locked In]

Vancouver to lead economic growth in 2010

Financial Post April 7, 2010 8:50 AM

OTTAWA — The Olympic flame will continue to contribute to the healthy glow in Vancouver’s economy through the rest of this year, with the boost from the Winter Games helping it outpace all other Canadian cities in terms of economic growth, a report said Wednesday.

The Olympics pumped an estimated $600 million into the West Coast city’s economy, the Conference Board of Canada said in its Metropolitan Outlook — Spring 2010, which forecasts growth for 13 Canadian cities.

“The Olympic Games provided a big, even if temporary, boost to retail trade, arts, entertainment and recreation, accommodation, and food services in Vancouver. All in all, the Olympics injected about $600 million into the Vancouver economy, lifting growth by about 0.8 percentage points,” said Mario Lefebvre, director of the Conference Board’s Centre for Municipal Studies. “On top of that, demand for new homes in Vancouver began to recover at the end of last year and that momentum has carried over into the first couple months of 2010.”

Halifax, the only city in the board’s survey to have posted GDP growth amid the economic downturn last year, will move to the middle of the pack this year, with growth of 2.5 per cent, as larger cities benefit from a recovery in the manufacturing and construction sectors, and — in 2010 at least — continued federal stimulus spending, the board said.

Toronto, which was particularly hard-hit by the recession, and Hamilton, Ont., will take second and third place behind Vancouver. The board forecasts 3.7 per cent growth in Canada’s largest city, and 3.3 per cent in Hamilton, which will not be quite enough for a full recovery from the 4.5 per cent decline in 2009.

Victoria is in fourth place, with forecasted growth of 3.2 per cent in 2010 based on renewed demand in the services sector, increased consumer spending and recovery in construction and manufacturing.

Edmonton rounds out the Top 5 for 2010, with construction growth leading it to a 2.9 per cent increase in GDPthis year.

The board warns that Ottawa-Gatineau’s 2.8 per cent growth this year will slow in 2011 as a federal government spending freeze takes hold.
© Copyright (c) The Vancouver Sun

Source: Vancouver Sun (http://www.vancouversun.com/Vancouver+lead+economic+growth+2010/2773378/story.html)


And apparently Canada's growth has been outpacing the other G7 countries...


Canada ‘enthusiastic rebound’ best in G7, OECD says

OTTAWA — Canada’s economy is blowing its G7 peers out of the water in terms of the speed and strength of its economic recovery, says a new outlook from a leading international organization.

The Paris-based Organization for Economic Development and Co-operation says Canada’s economy likely grew 6.2 per cent in the first quarter of this year, well ahead of the 1.9 per cent overall growth estimated for the other G7 countries.

And the 30-member organization, representing the world’s advanced nations including the G7, says Canada’s economy will continue to expand in the second quarter — the March-June period — at 4.5 per cent, about twice the G7 average.

“Canada is benefiting from its past good policies, in spite of the fact that Canada was severely hit through trade ...from south of the border,” said OECD chief economist Pier Carlo Padoan.

The United States, United Kingdom, Japan, Italy, Germany and France are the other G7 countries. Brazil, China, India and Russia aren’t currently full members of the OECD, despite the growing international importance of their economies.

Padoan noted that Canada had entered the recession with stronger fundamentals than its peers, in terms of growth, its banking sector and governmental fiscal position. Canada’s debt relative to its economy is the lowest in the G7.

The Canadian economy grew at a surprisingly strong five-per-cent clip during the last three months of 2009, and kept going in January with a 0.6 per cent monthly advance that surprised analysts.

As a result, several private sector economists have revised upwards their forecast for Canadian growth in the first half of this year, but few have put growth above six per cent in any quarter.

However, economists have cautioned that Canada’s economic growth will likely slow down, noting the Bank of Canada is expected to raise interest rates in June or July, which could reduce domestic borrowing and spending.

Overall, the OECD said it was moderately optimistic about the global economic picture, with the emerging economies experiencing strong growth that is pulling industrialized countries along.

“The bottom line is that the recovery is taking hold slowly,” Padoan said at a news conference. “Industry production is bouncing back strongly, business confidence is rebounding (and) that is extremely encouraging.”

Other encouraging developments are that financial conditions are improving and global trade has rebounded from the fall-off during the recession.

He said trouble spots remain, including high unemployment, which is only starting to peak in some countries.

The OECD study added that it expects growth in leading rich economies to slow somewhat after government stimulus programs is withdrawn.

Still, “overall it is an encouraging picture,” said Padoan.

The OECD forecast that U.S. gross domestic product would rise 2.4 per cent in the first quarter and 2.3 per cent in the second quarter, down from 5.6 per cent in the fourth quarter of last year. Forecasts for Japan are 1.1 per cent and 2.3 per cent for the first two quarters of 2010, down from 3.8 per cent in the fourth quarter 2009.

Germany’s economy probably shrank in the first quarter, however, due to a slump in construction activity. The OECD estimates Germany’s rate of economic was minus-0.4 per cent in the first quarter but will grow bounce to 2.8 per cent in the second quarter.

The OECD urged rich governments to end stimulus programs next year or earlier to avoid sinking deeper into debt. But it warned that they should do so gradually and carefully.

“Despite some encouraging signs on activity, the fragility of the recovery, a frail labour market and possible headwinds coming from financial markets underscore the need for caution in the removal of policy support,” the report said.

“Consolidation should start in 2011, or earlier where needed, and progress gradually so as not to undermine the incipient recovery.”
Source: Toronto Star (http://www.thestar.com/business/article/791490--canada-enthusiastic-rebound-best-in-g7-oecd-says?bn=1)

[LeftCoaster]

Hey, beat me too it, I was going to post that exact article. nice to have someone else posting in this thread though!

Ontario court approves specialty paper unit sale by Fraser Papers
By The Canadian Press

TORONTO - The Ontario Superior Court has approved the sale of the specialty papers business of Fraser Papers Inc., which has been operating under court protection from creditors.

Under the terms of the sale, the creditors of Fraser Papers will receive promissory notes and a 49 per cent equity interest in the purchaser, Twin Rivers.

Brookfield Asset Management Inc. (TSX:BAM.A), a secured creditor, has agreed to convert its claim against the company into a 51 per cent stake in Twin Rivers, while the New Brunswick government has agreed to convert its $35-million secured loan and accrued interest into preferred shares.

The deal is expect to close within the next few weeks.

Fraser Papers also said Wednesday that the court overseeing its restructuring has extended the company's creditor protection to July 9.

Last month, Fortress Paper Ltd. signed an agreement to acquire a manufacturing facility in Thurso, Que., from Fraser Papers for $3 million.

Vancouver-based Fortress (TSX:FTP), which produces specialty paper, said it intends to spend approximately $153 million to convert the plant into a specialty cellulose operation once the acquisition is complete.

Fraser Papers is an integrated specialty paper company with operations in New Brunswick, Maine, New Hampshire and Quebec.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b072095120

[LeftCoaster]

Huntingdon REIT's Q4 loss narrows to five cents per unit despite lower revenue
By The Canadian Press

RICHMOND, B.C. - Huntingdon Real Estate Investment Trust said Wednesday its fourth-quarter loss from continuing operations narrowed to five cents per unit compared with a loss of six cents per unit in the same period last year.

The trust, which owns interest in a diversified portfolio of commercial properties, had rental revenue from continuing operations of $13.7 million for the period ended Dec. 31. That's down from $14.9 million in 2008.

Funds from operations, a widely-used measure of the financial health of publicly traded real estate companies, was negative $200,000 compared with income of $600,000 a year ago.

The REIT only provided per unit data for the quarter and full year.

At year end, Huntingdon REIT (TSX:HNT.UN) lost 13 cents per unit versus 10 cents per unit in fiscal 2008. Huntingdon attributed the increased loss in fiscal 2009 to higher operating costs and a reduction in income tax recovery.

Its rental revenue slipped to $58 million from $59 million.

As at the end of last year, about 83 per cent of Huntingdon's portfolio was leased. That's down 1,000 basis points at the end of the previous year due to higher vacancy at various Ontario retail and industrial properties.

During afternoon trading on the Toronto Stock Exchange, Huntingdon REIT's units were unchanged at $5.80.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b072499622

[LeftCoaster]

Mercator gets extension on Mineral Park guarantee; shares soar on TSX
By The Canadian Press

VANCOUVER, B.C. - Shares of Mercator Minerals Ltd. (TSX:ML) soared in heavy trading on the Toronto Stock Exchange on Wednesday after the company announced it had been granted a one-year extension to satisfy the completion guarantee at its Mineral Park mine in Arizona.

The extension, granted by Silver Wheaton (Caymans) Ltd., a subsidiary of Silver Wheaton Corp. (TSX:SLW), gives Mercator until June 30, 2011, to meet the mill throughput requirements of an average 35,000 tons per day for 30 consecutive days.

Meanwhile, Mercator also said it has granted Silver Wheaton (Caymans) Ltd. a right of first refusal on any future silver stream transaction or royalty interest on silver produced from mining properties or concessions owned or leased by the Mercator its affiliates.

The two companies signed an agreement two years ago under which Mercator agreed to transfer to Silver Wheaton all the silver from Mineral Park mine for $3.90 an ounce in exchange for an upfront payment of US$42 million to fund expansion of the mine.

"We value our partnership with Silver Wheaton and we appreciate their continued support of the Mineral Park mine," Mercator president and CEO Mike Surratt said Wednesday in a news release.

"We look forward to expanding our business relationship with this leading silver stream company."

The 100 per cent owned Mineral Park mine is Mercator's principal asset. It shares were up 23 cents or 10.5 per cent at $2.42 in early afternoon trading on the TSX that saw more than 5.5 million shares change hands.

Silver Wheaton Corp. stock was up 52 cents or three per cent at $17.50 on almost 900,000 shares.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b074910728

[LeftCoaster]

Rye Patch shares drop 30 per cent after Centerra property purchase is pre-empted
By The Canadian Press

VANCOUVER, B.C. - Shares of Rye Patch Gold Corp. tumbled more than 30 per cent on Friday morning after the junior miner disclosed that another company pre-empted its agreement to purchase a property stake from Centerra Gold.

Rye Patch (TSXV:RPM) shares were off 11 cents to 23 cents on the TSX Venture Exchange after its stock resumed trading early Friday.

After the closing bell on Thursday, the company confirmed that Centerra (TSX:CG) has sold its stake in a Nevada gold property to California company Homestake Mining Co., after that company exercised its right of first refusal to acquire Centerra's 63 per cent stake in the Ren property.

Rye Patch had made an agreement to buy the property interest, but it was conditional on Homestake waiving its pre-emptive right to the property.

Rye Patch said it is now entitled to a break fee of US$250,000 from Centerra.

Centerra shares were up 11 cents to $11.46 on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b091108616

[LeftCoaster]

Search Minerals 'very excited' by rare earth element discovery in Labrador
By The Canadian Press

VANCOUVER, B.C. - Search Minerals Inc. (TSXV:SMY) said Wednesday it was "very excited" by the results of an airborne survey for rare earth elements in southeastern Labrador.

Radiometric and magnetometer surveys have outlined at least 80 rare earth element targets in the Port Hope Simpson district, the company said in a news release.

"Very preliminary prospecting and sampling of a few of the REE (rare earth element) targets in the PHS district indicate that this district is highly prospective for Zr, Y, Nb and U as well as REEs," it said.

The company, whose shares were halted in trading on the TSX Venture market pending an announcement, said it recently staked additional claims in the district creating a belt approximately 120 kilometres long and four-to 10-kilometres wide in the PHS district.

Search Minerals shares last traded Tuesday at 50 cents on the Venture market.

Search, through its wholly owned subsidiary, Alterra Resources Inc., now controls 58 licences in the area comprised of 11 licences acquired in an agreement with B and A Minerals Ltd. and 47 additional map-staked licences for a total of 3,456 claims covering 864 square kilometres.

"We were very excited about the initial REE discovery on the B and A claims," Search Minerals president Jim Clucas said.

"As a result of significant additional staking, our land package has grown to the point where we believe we have identified and control the largest new district for REE potential in North America."

Search plans to spend about $1 million on follow-up mapping, sampling and prospecting of the higher priority targets this spring and summer, leading to drill targets by late summer, it said.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b142629622

[LeftCoaster]

Pan American Silver reports gold and silver production up from year ago
By The Canadian Press

VANCOUVER, B.C. - Pan American Silver Corp. (TSX:PAA) said Monday that silver production in its first quarter totalled 5.5 million ounces, up 13 per cent from a year ago.

Gold production was 27,896 ounces, up 34 per cent.

Pan American said it expects to achieve its full year silver production forecast of 23.4 million ounces.

The company said its Huaron mine will be hurt by the difficult ground conditions, but better than anticipated ore grades at its Alamo Dorado and San Vicente mines are expected to offset the shortfall.

Shares in Pan American, which reported its results after the close of markets, were up 15 cents at $25.37 on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b193560025

[LeftCoaster]

To Vancouver and beyond: Buzz Lightyear ushers in Pixar's first Canadian studio
By Tamsyn Burgmann, The Canadian Press

VANCOUVER, B.C. - When Buzz Lightyear visits Vancouver, he strolls through the old-growth forest of Stanley Park, while his buddy Woody checks out the park's grove of totem poles.

Lightening McQueen races along the seawall and past glimmering glass of towering condos, while Wall-E takes in a glorious sunset over the Inukshuk at the beach.

Creators of the well-loved characters from California's Pixar Animation Studios are embarking on an adventure north of the border by opening its first Canadian studio, even despite a strong Loonie that's knocking the knees of American investors.

"Interestingly enough, we have a very long-term approach, we are very methodical and deliberate organization," Amir Nasrabadi, Pixar Canada's general manager, said Tuesday after showing a gag video featuring the popular computer-generated characters visiting city landmarks.

"Fluctuations in foreign currency, while they can be significant, will not alter our plans."

Pixar Canada won't make feature-length films. Instead, they will produce short cartoons by further animating the worlds of the blockbuster hits Toy Story and Cars. The variety of new creations, not set in Vancouver but in their respective imaginary towns, will appear on the Disney Channel and network TV, online and at theme parks.

Managers are aiming to staff the open-concept office - which features spectacular views of trains, tugboats and float planes passing through Vancouver's harbour - with 75 employees by December 2011.

Academy Award-winning Pixar, which is nearing 25 years in the business, was attracted to Vancouver for several reasons, Nasrabadi said.

Talent is available in droves thanks to an abundance of universities and colleges in the area, which is in the same time zone as San Francisco Bay, where Pixar has its headquarters.

Plus, British Columbia offers a competitive tax regime.

"The federal government, and especially the provincial government, has been incredibly strong in terms of supporting and strengthening the film and production tax incentives, making this a very cost-effective place to do business," Nasrabadi said.

Premier Gordon Campbell, who attended the opening, said the film industry comprises about one to two per cent of British Columbia's economy.

"(There are) indirect benefits that come from developing a strong creative industry," he told reporters.

"As we move into the future, I think for Canada, not just British Columbia, we're going to have to be more innovative."

New employee Behzad Mansoori-Dara, who is a layout artist, said he's thrilled to be working on projects related to films he watched while growing up.

"I still remember when Toy Story was coming into the theatres and I went and bought my tickets people said, 'That looks kind of weird, that C-G thing,"' he said of the world's first fully computer generated feature film, released in 1995.

"It's really awesome to be a part of that legacy, to just kind of feel that history of where it's coming from and to be a part of the projects that originated all of this."

His co-worker Julie Pantoja, an apprentice artist, says she's looking forward to injecting some Canadian flavour into the animations.

"We'll try to put in a Canucks' jersey somewhere in the background," she joked.

Pixar releases Toy Story 3, its 11th feature film, in June.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b204705428&page=2

[LeftCoaster]

Teck Resources to pay off $9.8 billion loan Thursday, faster than expected
By The Canadian Press

TORONTO - Teck Resources Ltd. (TSX:TCK.B) says it will make a final debt repayment on Thursday for the $9.8 billion loan it took to acquire the assets of Fording Coal Trust.

Chief executive Don Lindsay told analysts on a conference call that Teck plans to pay off the outstanding $417 million on the 2008 loan faster than it initially expected.

He says that has increased Teck's investment rating with some of the world's biggest rating firms and has freed up cash for reinvestment in the company.

However, he also said that the Vancouver-based mining company is not planning any immediate acquisitions, despite the freer cash flow.

Teck has reduced its total debt by $8.1 billion in 18 months.

Late Tuesday, the company reported profits of $937 million in the first quarter, helped by higher revenue and asset sales.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b212399221

[LeftCoaster]

Great Basin Gold selling up to 50,000 tons of Nevada ore to Newmont Mining
By The Canadian Press

VANCOUVER, B.C. - Great Basin Gold Ltd. (TSX:GBG) announced Wednesday it has agreed to sell ore stockpiled at its Hollister property in Nevada to Newmont Mining Ltd. (TSX:NMC) for processing.

Under the deal calling for the sale of up to 50,000 tons and not less than 35,000 tons, Newmont Mining will settle 75 per cent of the estimated value of the ore within five days after delivery at a fixed metal price of US$1,000 per ounce for gold and US$17 per ounce for silver.

The outstanding amount will be settled once all metal has been crushed and final assays received, Great Basin said in a news release.

Great Basin said it expects to recover approximately 28,000 gold equivalent ounces, with estimated net proceeds of US$26.3 million under the agreement.

Toronto-based Newmont operates in North and South America, Indonesia, Africa, Australia and New Zealand. Its shares were up 61 cents at $52.12 in midday trading Wednesday on the Toronto Stock Exchange. Shares of Vancouver-based Great Basin were up 10 cents at $1.78.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b212220121

[LeftCoaster]

More good news for Teck. After the catastrophic last few years, following some really bad luck making a high risk manouver right before the financial collapse Teck has managed to squeek through and now appear stronger then before.

Look for their bond ratings to continue to rise past the immanent adjustment, as Teck benefits from rising comodity prices and a stable capital structure. I would also be surprised to see Teck involved in any major aquisitions in the near future, this recent experience has likely made them somwhat gunshy.

Teck Resources to make loan payment Thursday, makes dividend a high priority
By Sunny Freeman , The Canadian Press

Teck Resources Ltd. (TSX:TCK.B) says it will make reinstating its dividend a high priority after it makes a final debt payment this week on a $9.8-billion loan it took out to acquire the Fording Coal Trust in 2008.

The company will make the $417-million loan payment on Thursday - closing out one of the stormiest chapters of the company's history - putting Teck back on the solid footing it held before the recession.

"We have hit the debt reduction target that we originally put in place in July of 2008 and we've hit it much faster than we originally planned, in spite of this severe economic recession that we've been through," Teck CEO Don Lindsay told a conference call Wednesday.

"We do have significant growth projects down the road...but they may not require capital for some time, probably not until 2012 at the earliest. So we have at least two full years of very significant surplus cash flow," said Lindsay, who added that Teck intends to make reinstating its dividend a high priority.

Teck suspended its dividend in November 2008, a move that saved the company $486 million a year. The company had paid a semi-annual dividend of 50 cents per share.

The Fording acquisition and the debt taken on to finance the deal were a near fatal mistake for Teck as the recession set in, commodity markets crashed and credit availability seized.

Since then, the Vancouver-based mining company has sold off non-core assets and a 17.2 per cent stake in the company to a Chinese firm for $1.7 billion to raise cash and pay down debt.

On Tuesday, Teck reported a profit of $937 million or $1.54 per diluted share on $1.9 billion in revenue, compared with a profit of $252 million or 47 cents per diluted share on $1.67 billion in revenue a year ago.

The profit was helped by several asset sales that closed during the quarter including the sale of its Andacollo gold royalty interest, gold assets in Turkey, and a one-third interest in the Waneta Dam power plant in southeastern B.C.

The cash raised was used to reduce debt and helped Teck shed a junk rating by some of the world's biggest debt rating firms, Lindsay said.

"We have investment grade ratings from three of the four North American rating agencies, reflecting the progress of our debt reduction and the strength of our underlying business."

Teck said it was waiting on Moody's revision in order to achieve investment grade status across the board.

Haytham Hodaly, a mining analyst of Salman Partners Inc. said he expects Moody's to revise its rating for Teck in the near future given Teck's "significant strides" in debt repayment and its market position.

"With coal prices continuing to be stronger and coal contributing a significant portion of their revenues, the company's position has improved, based not just on coal, but on copper and zinc as well."

Teck is optimistic about its coal and copper production levels for the rest of 2010. It expects a significantly higher margin on coal sales with prices in the range of $55 per tonne.

But it remains cautious about production at its Red Dog mine in Alaska, where the U.S. Environmental Protection Agency has stayed a renewal permit. If the delays extend beyond May, production at Red Dog will probably be curtailed in October, Teck said.

Teck shares closed unchanged at $41.71, with nearly 3.8 million changing hands Wednesday on the Toronto Stock Exchange.

[SpongeG]

great news!

Next month, Sony Pictures Imageworks (Alice in Wonderland, 2012), the animation and visual-effects arm of Sony Pictures Digital Productions, will announce its plans to open a Vancouver studio this spring.

...

Another big Hollywood player could be next. Both Hasselbach and Chenard say the interactive-entertainment software arm of George Lucas’s company Industrial Light & Magic (best known for the Star Wars films) is thinking about expanding north.

“LucasArts is definitely looking at Vancouver,” says Chenard, who says his students have had some face-time via Skype with Skywalker Ranch, the company’s creative headquarters.

LucasArts did not respond to a request for comment by deadline yesterday.

http://www.theglobeandmail.com/news/arts/pixar-studio-opens-in-vancouver/article1540515/

[LeftCoaster]

Wow, interesting stuff. These announcements of major US studios opening operations in Vanouver have been pretty prolific lately... Quite surprising really considering the shape of the US economy and the Canadian dollar.

I guess vancouver just has a large talent pool, most of whom might just happen to be looking for work right now.

[SpongeG]

they pay well either currency for these kind of positions - the pee on work is sent to asia still - our advantage and what i have heard is Vancouver has the talent pool and its on the west coast and proximity to Hollywood

[LeftCoaster]

Lions Gate Metals and AusNiCo call off merger after failing to reach a deal
By The Canadian Press

VANCOUVER, B.C. - Lions Gate Metals Inc. (TSXV:LGM) and AusNiCo Ltd. have called off a plan to merge the two companies after failing to reach a deal.

Lions Gate chief executive Arni Johannson said several factors led to the decision.

"Some key issues were the lengthy due diligence and regulatory delays, a blockade at our proposed drill program site and market volatility," Johannson said in a statement.

"That said, we still own 100 per cent of a significant copper asset and are working diligently to resolve issues in the Poplar region."

Lions Gate owns three copper and molybdenum projects located in British Columbia.

AusNiCo is an unlisted Australian company with nickel exploration tenements in South East Queensland, Australia.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b223050624

[LeftCoaster]

Lions Gate amends poison pill to account for Icahn stock following opposition
By The Associated Press

LOS ANGELES - Lions Gate Entertainment is amending the conditions necessary to approve a shareholder rights plan that would help it thwart a hostile takeover.

Under its new rules, the movie studio will count the votes held by activist investor Carl Icahn.

Icahn has offered to buy shares he doesn't own for US$7 per share, but the company said the offer is too low.

Lions Gate shares closed up 29 cents, or 4.2 per cent, at $7.18 on Friday, suggesting investors believe a higher bid will emerge. Shareholders will vote on the plan May 4.

The company previously said it would exclude Icahn's votes, which account for about 19 per cent of all shares.

The company made the change after prominent proxy advisory firm RiskMetrics Group recommended shareholders vote against it.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b232992224

[LeftCoaster]

West Fraser Timber reports Q1 profit of $19.4 million, sales up from year ago
By The Canadian Press

VANCOUVER, B.C. - West Fraser Timber Co. Ltd. said Friday it earned $19.4 million in its latest quarter as revenue grew compared with a year ago, helped by improved lumber prices.

The forestry company said the profit amounted to 45 cents per share in its latest quarter compared with a loss of $83.1 million or $1.94 per share a year ago.

Sales totalled $687.8 million, up from $558.2 million.

"West Fraser's results reflect the efforts of our employees who maintained their focus on our culture of cost control and improved efficiency throughout a very bleak downturn," chairman, chief executive and president Hank Ketcham said in a statement.

"These efforts, along with improved pricing for our products, have positioned West Fraser to return to profitability."

In its outlook, West Fraser said the recent increase in lumber prices is largely driven by market and weather-related downtime across North America and inventory restocking.

The company warned lumber prices may decline later in the year as additional production comes onstream, while housing starts in Canada are likely to support demand and prices for panel products.

West Fraser said strong pulp markets should continue as economic growth in the consuming regions continues.

West Fraser (TSX:WFT) has operations in Western Canada and the Southern United States.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b231600218

[LeftCoaster]

Interfor to reopen Castlegar mill as lumber pricing and demand pick up
By Sunny Freeman, The Canadian Press

International Forest Products Ltd. says it will reopen one sawmill as dramatic increases in pricing and demand continue to take root in the lumber market, but remains wary of lingering uncertainty in the recession-battered industry.

"Clearly business conditions are much better than they were at this time last year or the immediately preceding quarter," CEO Duncan Davies told analysts Friday on a conference call to discuss Interfor's (TSX:IFP.A) improved financial results for the first quarter of 2010.

Davies said there is cause for some celebration as Interfor plans to restart one if its B.C. mills, at Castlegar, but there is also uncertainty in the market, especially in the U.S., where activity in the housing market remains close to historic lows.

"Don't get me wrong, we're enjoying the current market a lot more than the one experienced last year, but we believe caution is the right approach to take," he said, after reporting that quarterly revenues almost doubled from a year ago.

The Vancouver-based lumber producer lost $3.4 million or seven cents per share in the quarter ended March 31, compared with a loss of $13.6 million or 29 cents per share a year ago.

Revenue totalled $139.9 million, up sharply from $77.3 million.

Lumber shipments totalled 264 million board feet for the quarter, more than double a year ago, helped by production from Adams Lake, B.C., and the recent restart of operations at Grand Forks, B.C., as well as higher operating rates at the company's U.S. mills.

Davies said the company was surprised by a dramatic increase in lumber prices from the previous quarter. But higher log costs in the B.C. Interior and the Pacific Northwest, weak cedar markets, and the higher Canadian dollar offset some of the revenue gains.

Prices in the Spruce Pine Fur 2X4 North American cash market gained US$63 or 31 per cent per 1,000 board feet, and now hover above US$300.

And with composite lumber prices sitting above US$350 - far higher than the threshold rate of US $315 -export duty rates on shipments from Canada to the U.S. will drop from 15 per cent to 10 per cent on May 1st for the first time since the Canada-U.S. Softwood Lumber Agreement came into effect in 2006.

If prices remain stable, the duty could fall even further - to five or zero per cent - in June.

Even so, Davies said Interfor will continue with its current business model, balancing operating levels against sales activities and maintain strict control over inventories.

"We believe the sales strategy (in place) is best for us long-term, we're not about to change it dramatically based on short term pricing activity," Duncan said.

Interfor says it could restart Castlegar sawmill on a reduced operating basis., one of three it owns in the B.C. Interior, as early as July.

The forestry sector, which includes the pulp and paper and lumber industries, was hit hard by the slump in the U.S. housing market and a decline in business from newspapers and magazines caused by the recession and the migration of ad revenues to the Internet.

Construction and housing activity in the U.S. appears to be stabilizing and demand could pick up during the spring and summer building season as inventories remain well below the levels of one year ago and prices continue to firm.

Patricia Mohr, a Scotiabank commodities economist, said Interfor and other lumber companies are benefiting from prices that moved even higher in April.

"The reason for that is we're seeing a slow, but fragile recovery in U.S housing starts," she said.

"U.S dealers and wholesalers are having to restock lumber in an environment of quite tight supplies because more than 40 per cent of North American lumber mills are currently shut because of the difficulties in recent years."

Mohr said prices will likely continue to move higher, which will set off a gradual restart of mills across Canada, especially in B.C.

Meanwhile, Interfor will restrict discretionary capital spending to small, high-return projects for the foreseeable future.

Interfor has operations in British Columbia, Washington state and Oregon, including two sawmills on the B.C. coast, three in the B.C. Interior, two in Washington and two in Oregon.

Shares in the company were down five cents at $6.10 in mid-afternoon trading Friday on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b231189816

[LeftCoaster]

Colombian government wants Greystar to file new environment impact study
By The Canadian Press

VANCOUVER, B.C. - Greystar Resources Ltd. shares plunged Monday after the Canadian mining company warned that its flagship Angostura project is now in doubt because of sweeping changes being sought by Colombia's environment ministry.

By midday, the Vancouver-based company's shares (TSX:GSL) were down $2.72 or almost 43 per cent at $3.72 on volume of more than 5.2 million shares, making Greystar one of the active issues on the Toronto Stock Exchange.

Greystar says Colombia's Ministry of the Environment, Housing and Territorial Development (MAVDT) wants the new environmental study that assumes the open pit mining project would occupy an area below 3,200 metres of elevation because of its location on the fringes of an environmentally sensitive area.

That would be a problem for Greystar since almost all of the project's infrastructure and half the proposed open-pit gold and silver mine would be above 3,200 metres, the company said in a news release..

"MAVDT's request would require the Angostura project to be completely redesigned," including identifying and acquiring new land positions to house displaced facilities and initiating new environmental baseline studies, Greystar said.

"At this juncture, the company has not had the opportunity to determine the feasibility of redesigning the Angostura project to comply with MAVDT's request," it said.

"However, this requirement will severely impact the project schedule and may have a material effect on its economic viability."

Greystar president and CEO Steve Kesler told a conference call with analysts that company was surprised when it learned of ruling by MAVDT ruling on Friday.

Kesler and other Greystar executives said the company had been working closely with Colombian officials and expected its project would be exempt from some provisions of the new law announced in February.

"It's a complex problem of definition" over just where sensitive environmental areas overlap with traditional mining areas, Kesler said.

He said the project, which he described as "one of the largest gold projects in development in the world" also enjoys "exceptionally strong support from local communities around the mine"

Executive vice-president Frederick Felder said that in discussions with the ministry back in the summer the company was told it would only be marginally affected by the new law.

"As to what we have in terms of guarantees, we actually have a written letter from the ministry saying that they understand Greystar's situation and will deal with it in an appropriate manner so that Greystar would not be affected by this change of law, ..." he said.

The company has five days to appeal the administrative decision and Kessler said it planned to file such an appeal by this Thursday. The MAVDT would then have 15 working days to respond.

"Our view is that decisions on how a project moves ahead should be taken on a much wider view incorporating both environmental, social, economic and security issues and not pure technical, legal interpretation, particularly where there is a lack of definition as to what is (and) where is Paramo, sub-Paramo,..." Kesler said.

The project, as envisaged before Monday's announcement, was expected to cost US$1 billion to build and US$3 billion to operate over a 15-year mine life. Greystar said it has spent more the $135 million so far and was in the process of securing US$650 million in financing for the project.

A prefeasibility study announced in March 2009 envisaged average annual production at Angostura of 511,000 ounces of gold and 2.3 million ounces of silver over a 15 year mine life.

The original environmental impact assessment was filed in December, before Colombia's mining code was modified in February.

The new code excludes mining from the Paramo ecosystem, which Greystar describes as an area with "glacier formed valleys and plains with lakes, peat bogs and wet and dry grasslands intermingled with shrub lands and forest patches."

"While the definition of Paramo is determined by fauna, flora and other ecological categories, it is also defined by elevation," Greystar said.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b263402224&page=1

[LeftCoaster]

West Fraser says worst is over as lumber industry recovers from 'depression'
By Sunny Freeman, The Canadian Press

West Fraser Timber Co. Ltd. says the worst is over for the forestry business as demand returns and lumber prices continue to rebound from one of the most devastating periods in the industry's history.

"We believe we can now see the light at the end of the tunnel in terms of the deep recession our lumber industry has suffered through since late 2006," West Fraser's (TSX:WFT) CEO Hank Ketcham told analysts on a conference call Monday, a day ahead of its annual meeting in Quesnel, B.C., and after the company reported its first quarterly profit in two years.

North American lumber prices were up 31 per cent during the first quarter of 2010, Ketcham said, and he expects lumber prices to remain strong during the busy spring building season.

Prices are so high that export duty rates on shipments from Canada to the U.S. will drop by five per cent in B.C. and 7.5 per cent in Alberta on May 1 for the first time since the Canada-U.S. Softwood Lumber Agreement came into effect in 2006.

If prices remain stable, the duty could fall even further - to zero per cent - in June.

The Vancouver-based forestry company saw profits rise to $19.4 million, or 45 cents per share in the first quarter of the year, compared with a loss of $83.1 million or $1.94 per share a year ago. Sales totalled $687.8 million, up from $558.2 million.

The Canadian lumber industry has been hammered by the U.S. housing crisis, since the majority of its product is used in south of the border. To cope with a drop in demand, forestry firms have cut capacity by as much as 50 per cent, closing mills and laying off thousands of workers to try to stave off deeper losses.

Ketcham said that supply and demand are coming back into balance after industry-wide downsizing during what he called a "depression" in the industry. He said he believes the worst is over in the business and housing fundamentals will gradually improve as the U.S. housing market begins to improve later this year.

Ketcham said lumber prices will remain solid for at least next couple of months, but added that the improved pricing will encourage producers to ramp up capacity, which will dampen prices after the spring as new home construction remains weak.

"Housing starts in the U.S. are still near historically low levels and we believe it will be a long and bumpy ride before new home construction returns to a level that supports long term demand of about 1.6 million housing units per year."

Pulp and paper prices will also continue to improve through the third quarter of the year, reflecting strong buying from China and extremely low pulp inventories, he said.

The company's Canadian mills were running at around 95 per cent capacity as it added a third shift at one of its Alberta mills during the quarter. Ketcham said they have sufficient log inventory to run at full capacity during the second quarter that ends June 30.

Meanwhile, West Fraser's mills in the United States ran at about 55 per cent capacity during the quarter due to weather-related slowdowns and are expected to ramp up to about 70 per cent production in the second quarter.

The company recorded a $15 million loss during the quarter from the shutdown of its Eurocan mill in Kitimat, B.C. on Jan. 31. The 40-year-old mill, located about 640 kilometres north of Vancouver, produced linerboard and kraft paper.

Ketcham said the company scaled back capital spending for the first time in its history during the recession, but now has a strong balance sheet and plans to be more aggressive on spending and paying down its debt.

"The past three years have been the most difficult in memory for our industry, but I believe that West Fraser has emerged as a stronger and even more competitive company than we were going into this recession," he said.

Last week, International Forest Products Ltd. (TSX:IFP.A) said its first quarter revenue nearly doubled to $139.9 million, up sharply from $77.3 million, last year. It also credited higher lumber prices for its improved financial results.

West Fraser has operations in Western Canada and the Southern United States. Shares in the company were up three per cent or $1.30 to $44.60 during Monday afternoon trading on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b261610118

Some good news today and some bad news it seems. West Fraser seems to really be coming out of a prolonged bad spell as they were hammered by the US housing collapse and had been fighting the US counterveiling duties against Canadian softwood lumber for years before that.

The WTO case is finally settled and it appears as though demand for lumber is on its way back up too. Hopefully this will be a respite for BCs beleagured forestry industry. Most of the remaining firms will likely be coming out of this strech must leaner and more agile; costs have been cut and capital structure retooled over the years. The old saying, whatever doesnt kill you can only make you stronger.

[LeftCoaster]

Some news out of BCs fledgling energy economy:

Nextraction announces results of shale study in Appalachian Basin in U.S.
By The Canadian Press

VANCOUVER, B.C. - Oil and gas company Nextraction Energy Corp. (TSXV:NE) says it may have almost one trillion cubic feet of shale gas at its properties in the Appalachian Basin in the U.S. Midwest.

Vancouver-based Nextraction said Tuesday that an independent U.S. firm did the evaluation of how much shale gas is expected to be in place.

"Our results clearly indicate the Devonian Shale gas opportunity extents into our area of interest," president Mark Dolar said in a news release.

"We are extremely pleased with the results of our drilling and investigation in this new part of the Appalachian Basin," Dolar said.

Nextraction said it plans to continue its drilling program, which includes completing three additional wells in 2010 and 25 wells by the end of 2011.

The Vancouver-based company targets projects with known reserves and said it's currently developing a gas play in western Wyoming and shale gas resource play in eastern Kentucky and Tennessee.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b271960719

[SpongeG]

Boeing gives $1.25 million to launch new tech institute

Vancouver Institute for Visual Analytics brings together industry, SFU, UBC

By Gillian Shaw, Vancouver Sun

The Vancouver Institute for Visual Analytics, bringing researchers from the University of B.C. and Simon Fraser University together in collaboration with industry partners, launched Monday with a $1.25-million investment from the Boeing Co.

The creation of the institute here helps propel Vancouver to the forefront of innovation in visual analytics, an area that combines visualization with analysis techniques to turn the massive and growing amounts of data being produced into knowledge that can be used to answer questions and solve problems.

"There is a great opportunity for bringing people together not only across universities but with companies," said Fred Popowich, director of the new institute that will be based at SFU but includes researchers from both universities. "We all know how much data is out there and it is growing quickly.

"People develop tools to deal with this data. It is also knowledge, you have to understand the data and understand the solution -there is data at the bottom and you want to get to solutions at the top -it can't just come from companies alone and it can't come from universities alone.

"The Institute is a good environment to bring the two together."

At the heart of the work is figuring out how to transform data into actionable knowledge; the Institute will provide a place for industry partners to collaborate with the academic world.

As an example, Popowich points to electronic financial transactions.

"How do you determine what is strange behaviour on your credit card," he said. "We need computer enhancement of the data so the computer can do some of that initial analysis and bring things to our attention."

Visual analytics can help create solutions in a number of areas, from banking to health care, transportation, public safety and others. People can use their computers to work visually with data, transforming it into something that can be understood and acted upon.

In 2008, Boeing made an initial investment of $1.4 million for visual analytics research and the current investment will provide a core sustainable base for the research institute, said Tracy London, director, Advancement Office of the Dean, Faculty of Applied Sciences at Simon Fraser University.

Popowich, who received his PhD in cognitive science from the University of Edinburgh, is a faculty member of the School of Computing Science at SFU and associate dean of the Faculty of Applied Sciences.

...

http://www.vancouversun.com/business/Boeing+gives+million+launch+tech+institute/2955707/story.html

[SpongeG]

hopefully they don't let happen with what happenned to Petcetera

Bosley's will expand with new owner

B.C. pet food retailer adds financial muscle and promises to maintain focus on service, specialty brands

By Scott Simpson, Vancouver Sun

The former president of pet supply retailer Bosley's is promising a transition that will be invisible to both shoppers and their animal companions after the independent British Columbia company was sold this week.

Ontario-based Pet Valu Canada has acquired Bosley's and will maintain the 23-store chain's traditional focus on specialty pet food brands, related supplies and customer service.

Bosley's ex-president Ken Almond gave up his title this week, but anticipates staying on through the end of the year as general manager.

Employees have been notified, and reassured that their jobs are safe, Almond said.

He's giving customers a similar message.

"What's going to happen from this day forward is that Bosley's is going to run as a completely autonomous business unit," Almond said Friday in a telephone interview from company headquarters in Richmond.

"Yes, Pet Valu Canada will own us, but we are going to run as a separate company in British Columbia. We are going to retain the Bosley's name, of course, because we have very good branding and very high name recognition, and that's not going to change as well."

Pet Valu has 296 corporate and franchised stores in Ontario and Manitoba, and is preparing to open its first Alberta store in Calgary next month.

In a news release, Pet Valu CEO Tom McNeely said Bosley's shared his company's "commitment to providing its customers with the highest quality pet products and unmatched customer service."

Both companies are privately owned, and financial details are not available.

"The reason that I have chosen to do that is partly personal. I'm now 65, and my partners are all about the same age as I am," Almond said. "At some point you've got to go to the next phase in your lives."

Almond described the deal as mutually beneficial, giving Pet Valu a foothold in B.C. and giving his company the financial means to realize a longtime goal of expanding outside of the Lower Mainland-Vancouver Island area where all of its stores are located.

Almond and his partners believed they could expand provincewide, but didn't have the financial resources to carry through.

"It was me and a bunch of my friends. We acquired Bosley's eight years ago and have worked really hard over that time frame to bring it where it is today.

"But to go to the next step takes a lot more than we were prepared to risk, frankly."

He said Pet Value "had a great desire to expand their presence in Western Canada and I believed that we would be their best opportunity to establish a significant presence in the West and particularly in British Columbia.

"I hear from people all the time -- 'When are you coming to Kelowna?' or Prince George, or Courtenay, or wherever. This now gives Bosley's the opportunity to do that."

...



http://www.vancouversun.com/business/Bosley+will+expand+with+owner/2951550/story.html

[SpongeG]

Sugoi Sets Up in New Headquarters

BURNABY, B.C. (BRAIN)—Sugoi has moved into a new 70,000 square foot office outside Vancouver, British Columbia, that’s designed to accommodate the company’s planned growth in its custom apparel business.

The new headquarters is a substantial upgrade from the old bowling alley that Sugoi called home for the past 15 years, said Scott Parr, vice president of sales for Sugoi.

“It sounds cool and quaint and it was kind of fun for a while, but it was never meant to be a long-term plan for the company,” Parr said.

The new facility combines Sugoi’s offices and its Canadian warehouse. Plans for the upgrade were put into place in 2008 after Dorel Industries purchased the company and tapped Sugoi to serve as the headquarters for its apparel and footwear group.

Along with the move, Dorel also invested in new hardware to support Sugoi’s growing custom apparel business including new digital equipment and sublimation machines to replace three aging screen printing presses.

“Virtually all of the equipment used to produce all of the custom apparel is brand new,” Parr said.

Sugoi produces custom apparel under its brand, as well as for Cannondale, which is also owned by Dorel. In the future, it will take on production for Dorel brands Schwinn, GT, Mongoose and Iron Horse, said Aimee Taylor, Sugoi’s communications and marketing manager.

Dorel executives have said they’re aiming to triple Sugoi’s custom apparel business in the next five years.

...

http://www.bicycleretailer.com/news/newsDetail/4008.html

[LeftCoaster]

Cool, I didnt even know Sugoi was a vancouver company... always seemed french or italian or something to me.

Anyway the Lionsgate/Ichan saga continues, this time with the BCSEC getting its feet wet. This is one of the reasons Lionsgate wants to move its headquarters out of Canada, as Canadian regulations surrounding poison pills and other hostile takeover detriments are much more stringent.

Ichan has pledged to keep the company HQed in Vancouver for another 5 years, but regardless of who takes control it appears that its days as a canadian company are all but numbered.

B.C. Securities Commission panel blocks Lions Gate shareholder rights plan
By The Canadian Press

VANCOUVER, B.C. - A British Columbia Securities Commission panel granted an application by the Icahn Group on Tuesday to block a shareholder rights plan recently adopted by Lions Gate Entertainment Corp. to forestall a takeover bid by Icahn.

The panel granted an application by the Icahn Group to cease trade the shareholder rights plan, the provincial regulator said.

The reasons were not immediately available.

Lions Gate had recommended that shareholders approve the plan, which would prevent unsolicited takeovers unless the owners of more than 50 per cent of unaffiliated shares agree.

A vote was set for the plan at a special shareholders meeting May 4.

Requests for comment from Lions Gate, which is based in Santa Monica, Calif., and Vancouver, were not immediately returned.

Among other factors, the company said if billionaire investor Carl Icahn increases his holdings above 20 per cent it would trigger a change of control provision that could cause it to default on a line of credit.

Icahn said the commission agreed with his view that Lions Gate shareholders should have the right to decide for themselves whether they wish to tender their shares to his offer

"We commend the commission for its thoughtful consideration and resolution of this important issue," Icahn said in a statement.

Lions Gate shares were down 37 cents at US$6.62 on the New York Stock Exchange on Tuesday. The shares jumped nearly seven per cent in after-hours trading, suggesting investors believe a higher bid may emerge.

Last week, Lions Gate urged shareholders to reject Icahn's offer to buy up outstanding shares for US$7 each. The offer is open until Friday at 8 p.m. ET.

The board unanimously rejected the buyout offer and said in a statement it was "financially inadequate, opportunistic and coercive."

Icahn owns nearly 19 per cent of the company's shares and has been in a year-long battle to take control of Lions Gate.

The company has noted that Icahn's previous bid of $6 per share was below $8.67, analysts' average target price for the shares.

Icahn has attacked the company's overhead and acquisition plans, but Lions Gate said Icahn has limited experience in the entertainment industry and lacked a coherent plan to run the company.

Lions Gate, based in Canada but operated out of Santa Monica, Calif., was behind the Oscar-winning movie "Precious: Based on the Novel 'Push' By Sapphire." It also owns the TV Guide network and made the "Saw" horror movies and such television shows as "Weeds" and "Nurse Jackie."

In 2005, Lions Gate moved most of its operations out of Vancouver and sold its Canadian distribution rights to Maple Pictures. However, Lions Gate has maintained a presence in the country by shooting some of its films and TV series at domestic facilities.

Icahn has said that if his takeover were successful, Lions Gate would remain a Canada corporate entity for at least five years and that several of his nominees to the company's new board would be Canadian citizens.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b272533222

[LeftCoaster]

2010 Olympics sealed $60 million worth of deals for Vancouver-area business
By Stephanie Levitz, The Canadian Press

VANCOUVER, B.C. - The 2010 Olympics sealed the deal on over $60 million worth of investment in the Vancouver-region, area mayors and business leaders said Wednesday.

While some of the eight deals announced had been in the works long before the Olympic flame was lit, Vancouver Mayor Gregor Robertson said the Games were the catalyst that turned handshakes into formal contracts.

"The Games were an excellent crucible for bringing business people together from around the world and introducing them to the local business community, building partnerships and relationships," he told a news conference.

"We're seeing significant results in only weeks following the Games."

The deals are being attributed directly to a $1.5 million program run by nine Metro Vancouver municipalities during the Games to attract investment.

Seventy-one companies were invited to the region for four days and introduced to local companies, politicians and other agencies.

Business leaders also received tickets to Olympics events, which upset some critics who had suggested the public shouldn't be funding elite access to the Games.

The chief executive officer of a U.S. technology start-up said he attended the gold medal women's hockey game and the energy there and in the rest of the city was part of why he decided to spend the $1 million to open his office in Vancouver and not San Franscisco.

"It's just so great to be welcomed to a city," said Anuj Singhal of Monetime Inc.

"So when we came during the Olympics, to just be welcomed like that and be introduced to so many people and just see the vitality of the city and see how many talented people and creative people there are, just to be part of the Games and the energy, that tipped it."

The other agreements announced include four additional international firms who will be setting up offices in Vancouver and a planned $15 million plant in the district of North Vancouver focused on hydrogen energy that is also expected to generate $10 million in spin-offs.

Executives from North Vancouver's H-Tec said they'd been working on the plant project with the French firm Air Liquide for the last two years.

"One of the things that the Olympic events did for us was first put a firm date in front of them where they needed to meet with us or allow this deal to waft for a long time," said H-Tec's Christopher Sacre.

While the company executives could have come for a meeting any time, Sacre said, a chance to attend the Games was major motivator.

"It was a lure, for sure," he said.

The largest agreement announced was a $27 million investment to keep 250 jobs at Cascade Aerospace in Abbotsford, B.C.

That Fraser valley city wasn't actually part of the Metro Vancouver program, though officials from there said they helped arrange meetings between the company and aerospace giant Lockheed Martin.

The program had initially set a target of securing $50 million worth of investment within two years and was funded in part by $800,000 by the federal government.

The federal government had its own program to leverage investment in Canada by using the Games, promoting the country abroad in a "2010 Reasons To Do Business With Canada" campaign and hosting a two-week global business leaders program during the Olympics.

Richmond, B.C. Mayor Malcolm Brodie said Wednesday's announcement was the first of others.

"The final results are far from in," he said.

"The real benefit is the relationships and the networks that have been created."

In the years immediately before and after Vancouver won the Games, reports estimated the economic spin-off could be as high as $10 billion, taking into account benefits like the new Vancouver Convention Centre and upgraded Sea-to-Sky highway and the money spent during the Olympics themselves.

One report by credit card company VISA said international visitors spent $115 million US on their credit cards in the 17 days of the Olympics.

A number of audits and studies of the economic impact of the Olympics are underway both by university researchers and auditing firms.

Results are expected this fall when the Olympic organizing committee releases its final financial statements.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b282791223

[LeftCoaster]

Catalyst Paper's sales down 25 per cent as demand, prices remain weak
By Sunny Freeman , The Canadian Press

VANCOUVER, B.C. - Catalyst Paper (TSX:CTL) cited continuing weakness in paper prices and demand Wednesday in reporting a big slide in first-quarter revenue and profit.

But the Vancouver-based pulp and paper producer said it was beginning to see glimmers of hope as the economy recovers.

"We saw some recovery in print advertising from the very low levels of a year ago and, as a consequence, paper demand is up slightly," CEO Richard Garneau said.

Price increases for the second quarter have already been announced.

Catalyst's sales during the first quarter fell to $273.3 million, down 25 per cent from $360.9 million in the prior-year quarter.

Catalyst booked a first-quarter net loss of $44.1 million, or 12 cents per share, a significant decline from a profit of $20.1 million, or six cents per share, in 2009.

The company attributed the loss to declining specialty printing paper prices and additional production cuts, as well as higher restructuring, input and maintenance costs.

Catalyst booked $10.1 million in restructuring costs during the quarter due to severance pay for some 300 employees, most of whom had been laid off as a result of production cuts at its Elk Falls, B.C., mills. Another $5.9 million in bond financing-related costs were offset by a foreign exchange gain on long-term debt of $11.7 million.

Meanwhile, the price of pulp continued to rebound, driven in part by production interruptions in Chile and other regions.

"Pulp strengthened as various events combined to drive price recovery and we could see a more extended pulp up-cycle. Markets for all products going forward will be influenced by industry re-start decisions and operating rates," Garneau said.

The company announced in March that it would restart the second pulp line at Crofton, B.C., in the second quarter.

But many of the company's paper machines, at its Crofton and Elk Falls mills, remain closed.

Catalyst is the largest producer of specialty printing papers and newsprint in western North America. It also produces pulp and owns Western Canada's largest paper recycling plant.

Shares in the company were down eight cents or 21.8 per cent at 30.5 cents Wednesday afternoon on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b282416721

[LeftCoaster]

Goldcorp reports Q1 loss of US$52.7 million on big foreign exchange charge
By The Canadian Press

VANCOUVER, B.C. - Goldcorp Inc. (TSX:G) reported a loss of US$52.7 million in its first quarter, weighed down by a $212.2-million charge related to foreign exchange.

The gold miner, which keeps its books in U.S. dollars, said Wednesday the loss amounted to seven cents per diluted share in its latest quarter compared with a profit of $291.2 million or 40 cents per diluted share a year ago.

The results a year ago included a $116.7-million gain on foreign exchange.

Revenue totalled $750.3 million, up from $624.8 million.

Goldcorp said excluding the foreign exchange charges its adjusted earnings in the quarter totalled $163.1 million or 22 cents per share, compared with $169.3 million or 23 cents per share in the first quarter of 2009.

The average analyst estimate had been for earnings of 25 cents, according to Thomson Reuters.

Production in the quarter totalled 625,000 ounces of gold, up from 616,500 ounces a year ago, while gold sales amounted to 569,100 ounces, down from 607,900 ounces.

The company's average realized gold price was $1,110 per ounce, up from $912 per ounce a year ago.

"A good start to the year at key operations, including Red Lake in Ontario and Los Filos in Mexico, contributed to increased gold production in the first quarter," Goldcorp president and chief executive Chuck Jeannes said in a statement.

"While revenues were negatively impacted by the timing of sales from Alumbrera and Red Lake, the delays are only temporary and we remain confident in our guidance for 2010 production and costs."

Goldcorp shares closed up C$1.32 at $42.99 on the Toronto Stock Exchange on Wednesday.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b281165216

[LeftCoaster]

Cant say I didnt see this one coming...

Lions Gate files to appeal British Columbia ruling that quashed poison pill
By The Associated Press

LOS ANGELES - Lions Gate Entertainment Corp. is appealing a decision by B.C. regulators to quash a shareholders rights plan that would have helped it fend off a takeover bid by Carl Icahn.

The company said Wednesday it applied to the B.C. Court of Appeal for leave to appeal the British Columbia Securities Commission ruling.

A hearing on the application is set for May 3.

Lions Gate also said it would push a special shareholders vote on its plan back to May 12. It had earlier planned to vote on its rights plan on Tuesday.

Icahn has offered US$7 per share to take over the movie studio, which is based in Vancouver but operates out of Santa Monica. The company has said the offer is too low.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b283014724

[LeftCoaster]

Following the good news coming out of Westfraser, more good news for forestry firms in BC.

Canfor Corp. reports Q1 profit of $32.5M compared to $69.9M loss for Q1 in 2009
By The Canadian Press

VANCOUVER, B.C. - Canfor Corporation (TSX:CFP), one of Canada's largest forestry companies, reported a profit of $32.5 million in the latest quarter, mainly due to higher lumber and pulp prices.

Vancouver-based Canfor reported late Wednesday that due to a new accounting standard in 2010, the company's net income available to its equity shareholders was $15.6 million, or $0.11 per share.

That is up $32 million from a comparable net loss of $17.0 million, or $0.12 per share, for the fourth quarter of 2009.

Quarterly sales were $577.9, up from $ 549.6 in the year earlier period.

The ongoing downturn in the U.S. housing market continues to have significant impact on Canfor's financial performance.

However, the company said the first quarter's results reflected the positive impact from higher lumber and pulp prices both on sales and inventory values and a continued tight control over costs.

[LeftCoaster]

Ballard Power Systems Inc. reports US$10M net loss in first quarter
By The Canadian Press

VANCOUVER, B.C. - Fuel cell developer Ballard Power Systems Inc. (TSX:BLD) cut its net loss nearly in half in the latest quarter as the company generated higher sales.

Ballard said early Thursday its first quarter loss narrowed to US$10 million or 12 cents per share, compared with a loss of US$19.1 million or 23 cents per share in the first quarter of 2009.

The Vancouver-area company said quarterly revenue rose to US$11.9 million from $8.1 million.

The company said that in its core fuel cell products business segment, first quarter revenues increased 28 per cent to US$5 million.

Fuel cells produce no emissions because they combine hydrogen and oxygen to create electricity without combustion. The Ballard products are used to power forklifts and other industrial vehicles.

In its financial release, the company also said it benefited from the January acquisition of Dantherm Power, which added to its bottom line.

Ballard's president and CEO John Sheridan said in a news release that the company was well-positioned to meet financial targets for full year revenue growth in excess of 35 per cent.

On the Toronto Stock Exchange Wednesday, Ballard closed down six cents to 2.48 The stock has traded between a low of $2.44 and high of $2.60 during the past 52 weeks.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b282054220

[LeftCoaster]

B.C. Olympics boost payroll employment in February, especially service industries
By The Canadian Press

OTTAWA - Boosted by the Vancouver Winter Olympics, British Columbia led the way as non-farm payroll employment increased nationally by 0.1 per cent, or 8,300 jobs, in February.

Statistics Canada reports notable job gains in accommodation and food services; investigation and security services; and employment services - all largely associated with the Olympic Games.

In manufacturing, payroll employment rose by 11,200 in February, the largest increase for this sector since January 2008.

The agency says a number of manufacturing industries were on the rise in February, most notably plastic product manufacturing; motor vehicle assembly; bakeries and tortilla manufacturing; agricultural, construction and mining machinery manufacturing; and motor vehicle parts.

Other industries with notable job gains in February were employment services; support activities for mining, quarrying, oil and gas extraction; investigation and security services; and business support services.

These gains were partly offset by declines in retail trade, mainly in grocery stores and gasoline stations, along with declines in educational services.

Average weekly earnings, including overtime, of non-farm payroll employees was $843.91, up 2.8 per cent from February 2009.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b293015023

[raggedy13]

Thanks for continuing to post so many articles, LeftCoaster. Keep up the good work! :tup:

[Yume-sama]

Yes, don't take the lack of comments as lack of interest. I read them all!

[Locked In]

^ Same here - lots of views on this thread from the looks of it.
----------

Vancouver Sun essay (http://www.vancouversun.com/post+Olympic+dawn+with+hangover/2973297/story.html) about B.C.'s economic present and future:


A post-Olympic dawn, with a bit of a hangover

B.C.'s economy has much going for it, but a coherent strategy for the future is still missing

By Miro Cernetig, Vancouver Sun - April 30, 2010

http://www.vancouversun.com/2973298.bin?size=620x400
The morning sun hits the middle of the Olympic rings moored on a raft in Vancouver's Coal Harbour during the Winter Games in February.
Photograph by: Bill Keay, PNG files

What's next?

Now that the Olympic Games are a memory, that's the biggest question hanging over British Columbia's economy, its politics and broader society.

What do we do from here out? What will be the catalyst to take Vancouver and the province to the next level of economic and social development?

Big questions. Surprisingly, there's no consensus on what that catalyst will be, other than it's not going to be another mega-event like the Olympics. What we need is a slate of public policy ideas and a vision, if you will, that will reshape the economic engine over a generation.

Despite the success of the Olympics, we're not in as great a shape as you might think here in Canada's westernmost province. Here are some of the facts, taken out of the Business Council of B.C.'s recent paper, Outlook 2020: Shaping B.C.'s Economic Future:
# - We rank fifth in Canada and 51st in North America, in GDP created per capita.
# - We are sixth in Canada in terms of productivity.
# - We rank fifth in Canada in research and development spending.
# - In terms of capital investment per worker, we're at $9,057 annually as of 2007. That's dramatically below the national average of $11,209 and well behind the U.S. average of more than $12,000. It means we're not innovating and renewing our economic base nearly fast enough.
# - We're one of Canada's weakest exporters and over the last three decades, our trade deficit has ballooned. It was $14 billion in 2008.

Staying competitive

The report's conclusion is sobering: "If B.C. were a country rather than a sub-national jurisdiction that is part of a much larger national economy, one would have to question whether such capital inflows could continue indefinitely to finance an ever-widening trade deficit."

We could go on with those mediocre numbers. But it's obvious. Despite our sky-high rankings as a great place to live, we're sort of a middling economy, lagging in productivity, export prowess and capital investment. These numbers suggest we are in some serious trouble if we hope to remain competitive in the global marketplace, never mind improve the standard of living of the 4.4 million people who live here.

So what is the basis of the future economic blueprint?

Part of the answer comes from our other mega-event: Expo 86, the World Exposition on Transportation and Communication, which proved a catalyst for change more than two decades ago. Expo 86, which was as controversial at the time as the Olympics, ushered in a new era for British Columbia: The province's tourism industry (now stalling) boomed, becoming one of our major generators of capital inflows. After promoting ourselves to the world, our resource economy diversified, both in its staples but also in its markets. China - a hit at the fair, with its pavilion showing bricks from the Great Wall - became a greater focus, too. Finally, the redevelopment of the Expo 86 lands on False Creek jump-started a long-term real estate boom that transformed Vancouver.

After the Olympics, British Columbia finds itself at a similar juncture with the possibility of developing a similar set of growth engines. Here's a taste of what may be next.

Commodities rebound

On the real estate front, there are projects that add $5 billion to $10 billion in new building in the City of Vancouver alone. Those include a proposed downtown casino complex, a re-roofed BC Place, the construction of new office towers, the last phase of residential development on False Creek and a push to build a transportation hub in downtown Vancouver, situated around the SeaBus terminal, that would include a third phase of the convention centre.

On the exports front, we are about to see a renaissance in commodity exports. For the first time in a decade, new mines are on the verge of opening, fuelled by demand from Asia. The forestry industry, devastated by the pine beetle and the downturn in the U.S. housing market, is expected to begin coming back in the next 18 to 24 months as demand for homes in the U.S., pushed by population growth, returns.

Another potential bright spot is the rise of a more robust energy export sector. The B.C. government's revamp of BC Hydro, its push to green energy and its moves to build the $6.6-billion Site C dam open up the chance of an industry based on green-electricity exports.

The booming natural gas industry, as well as the construction of a new pipeline to the coast, also suggest a new export to market that may, if we're shrewd, also be sold as a way of offsetting other fossil fuels such as coal and petroleum.

Other areas that offer such hope are an expansion of educational services for foreign students; marketing some aspects of British Columbia's health care services to the world; and, finally, using Vancouver's international banking status to use preferential tax treatments to build an international trade in banking, digital media, environmental technology and even carbon trading.

But there's something missing. Namely, a clearly articulated strategy to knit all the elements together.

As it stands, the province's primary economic hub - Metro Vancouver - is a mishmash of competing municipalities.

The region's various mayors have no integrated voice on anything other than their desire to retain individual autonomy. That has long defeated attempts for a regional strategy on economic development with respect to real estate, attracting head offices or building high-tech clusters. On the coming real estate development surge, for example, there is no broad approach to identifying what public amenities should be extracted from future development, what the mix of commercial space will be to try to attract head offices back to the West Coast or what changes to building heights are necessary to accomplish that.

Looking for markets

On the provincial government front, there is still no clear approach to exporting green energy. While efforts are underway to create new green power sources, there appears to be no progress in convincing our largest market, California, to consider those projects green. If that doesn't happen, there will be no green power premium.

There is also no clear view on what the primary markets will be for the natural gas now being developed in the province, though it may be possible to use them to replace more carbon intensive fuels. Are we aiming for Asian markets in the future, necessitating new infrastructure at our ports, for example, or are we going to be competing with U.S. natural gas producers?

Where is the strategy to export our educational services, which means attracting foreign students to both public and private institutions? Should B.C. be part of a Canada-wide program to do this, given that what we're doing now on a provincial level often means competing with other provinces?

Productivity problems

Most importantly, however, there has been no coordinated move by government to goose our anemic productivity, perhaps the essential tool to making British Columbia competitive in the decades ahead. In fact, there's been no effective campaign to explain to British Columbians why increased productivity numbers are essential to protecting future growth and their lifestyles.

Nothing highlights this more than Victoria's abysmal attempt to introduce the harmonized sales tax - widely viewed as essential to the B.C. economy. Instead of communicating a cogent argument, backed by the facts, it has allowed the important policy to be hijacked by Bill Vander Zalm, the former Socred premier who is a right-wing, anti-Liberal populist.

Vancouver is on the world's radar after the Olympics. British Columbia has the resources to prosper in the next decade. But the blueprint to harness that future still needs to be written.

mcernetig@vancouversun.com
© Copyright (c) The Vancouver Sun

Source: Vancouver Sun (http://www.vancouversun.com/post+Olympic+dawn+with+hangover/2973297/story.html)

[Canadian Mind]

Locked in, good article. :)

[giallo]

Vancouver's digital and lumber industries seem to be firing on all cylinders. Exciting developments all around.

[Locked In]

Investors keen on Vancouver's commercial property

Geographic constraints, strong immigration cited

By Brian Morton, Vancouver Sun - May 4, 2010 10:02 PM

http://www.vancouversun.com/business/2986786.bin?size=620x400
Vancouver and Montreal tied for second place, behind Toronto, as two of the best cities to invest in commercial real estate, according to a survey.
Photograph by: Bill Keay, Vancouver Sun files

Vancouver's commercial real-estate sector is considered a great bet for investment, according to a survey released Tuesday by Colliers International.

The survey, which focuses on office, industrial and retail properties, also found that while Canadian institutional and private real-estate investors believe the market hasn't yet reached its lowest point, they're cautiously optimistic that a fast recovery will soon take shape.

While Colliers International's 2010 Global Investor Sentiment Survey found that Canadian real-estate investors favour Toronto as the top property investment city in the country, Vancouver and Montreal came in second.

"It's due to the fact that this market, largely because of geographic constraints, has always been able to maintain a reasonable balance between demand and supply of space," Kirk Kuester, managing director of Colliers International in Vancouver, said in an interview. "That translates into cash-flow security, which is what investors want.

"Vancouver is challenged by the ALR, the border, the mountains and the ocean, so it's challenged in terms of adding supply of real estate. [Investors] are not at risk of a market becoming oversupplied very quickly."

The survey found that 85 per cent of Canadian respondents who plan to acquire properties favour the domestic market, with Toronto coming in first at 27.8 per cent and Vancouver and Montreal tied for second at 16.7 per cent each. For Edmonton and Calgary it was 14.8 and 11.1 per cent respectively.

Kuester, who said Toronto came out on top because of its size, cited immigration as another reason for Vancouver's popularity with investors. "We have an amazing amount of immigrat-ion to this market, both domestic and international. That adds to the population and demand.

"And if [investors] need to divest, there will be a lineup of people in most instances."

The survey of more than 240 major real-estate investors around the world, including 26 large Canadian institutional property investors, also found that two-thirds of investors plan to expand acquisitions over the next year with a strong appetite for domestic properties.

Cameron Muir, director of the centre for urban economics and real estate at the University of B.C.'s Sauder School of Business, said in an interview that the survey bodes well for Vancouver.

"It says Vancouver, not surprisingly, is a strong investment market in Canada.

"But the most interesting thing is that Calgary isn't in the top three. In the commercial markets, there's a lot of concern for the vacancy market in Calgary."

Milton Lamb, chair, national investment team, with Colliers International in Canada, said in a statement: "On a risk adjusted basis, Canadian investors still see Canada as a preferred investment destination that offers a higher return on investment compared to the U.S., in part because of the turmoil that still lingers south of the border."

The survey concluded that Canadian investors are not just interested in buying opportunities, with 54 per cent looking to sell under-performing or non-core assets.

The survey found that 73 per cent of Canadian investors feel access to capital became easier over the past year, with most expecting that to continue but with higher borrowing costs; 50 per cent of Canadian investors would pay a premium for sustainable buildings; and rents are expected to decline and hit bottom at the beginning of 2011.

bmorton@vancouversun.com
© Copyright (c) The Vancouver Sun

Source: Vancouver Sun (http://www.vancouversun.com/business/Investors+keen+Vancouver+commercial+property/2986787/story.html)

[Blake]

Source: Vancouver Sun (http://www.vancouversun.com/business/Investors+keen+Vancouver+commercial+property/2986787/story.html)

Cameron Muir, director of the centre for urban economics and real estate at the University of B.C.'s Sauder School of Business, said in an interview that the survey bodes well for Vancouver.



Off topic: Anyone know when Cameron Muir joined UBC? Did he leave his post at the BC Real Estate Association?

Interesting, as I am a currently UBC urban land economics student and never heard anything about Muir coming.

[LeftCoaster]

Thanks for the comments guys, sorry for the absence, just started a new job and things have been really hectic.

Nice article about commerical property in Vancouver, its been struggling relative to residential (and will continue to do so) but it seems to be somewhat stronger as of late. I'm not surprised investors are looking at getting involved, the same fundamentals that push up residential should be pushing up commerical but they havent kept pace, I guess some people are betting that the siparity is not justified.

Anyway some more lumber industry news:

Canfor sees future in lumber shipments to China, not tepid U.S. market
By Sunny Freeman , The Canadian Press

The deep economic downturn that cut U.S. demand for Canadian lumber significantly for several years has had an upside for Canfor Corp., which turned its focus to Asia and discovered "exponential growth" during the first quarter.

"There so many opportunities in China, it's really a stretch of the imagination," Canfor's president and chief executive Jim Shepard said Friday.

The Vancouver-based lumber producer (TSX:CFP) shipped about 25 per cent of its products offshore during the first quarter - about half of that going to China - while 20 per cent was used domestically and the rest bound for the U.S.

It reported $15.6 million of net income attributable to shareholders, or 11 cents per share, in the first quarter. In the first quarter of 2009, the net loss attributable to shareholders was $58.8 million or 41 cents per share.

Quarterly sales were $577.9 million in the first quarter of 2010, up from $474.7 million in the year earlier period, which marked the low point of the 2008-9 recession for Canada.

Shepard said there is a "growing Asian appetite" for higher grades of lumber, adding that as China develops its urban centres, it will emerge as a dominant market for lumber in the next ten years.

"We continue to focus on what the most opportunistic ways will be for shipping our product there," Shepard said.

"And while we're doing that, the net effect is that we're taking a considerable amount of volume off the North American market and that's certainly having a positive impact on lumber prices."

Canadian forestry companies are beginning to re-open mills and recall workers who were laid off during the downturn, when producers cut costs to cope with a drop in demand in the U.S. house construction market.

The shutdowns, along with problems faced by international competitors - from an earthquake in Chile to a port strike in Finland - have constrained the supply of wood products, resulting in a global shortage that drove lumber prices up 30 per cent in the first quarter.

Lumber prices in March were so high that export duty rates on shipments from Canada to the United States will drop from 15 per cent to 10 per cent on May 1-marking the first time prices reached the threshold since the Softwood Lumber Agreement between the U.S. and Canada came into effect in 2006.

"I'd like to say we are at the beginning of the end, but that remains to be seen. I do, however, genuinely feel that we are past the worst of it and we came through in one piece and in good shape," Shepard said.

He added that it's still unclear whether the current spike will be permanent because it is driven by temporary supply constraints rather than sustained demand.

Shepard said he remains cautious about the immediate future because the ongoing downturn in the U.S. housing market continues to take a toll on Canfor's financial performance.

Housing starts in the U.S. remain under 600,000, well below a peak of two million in 2005 and a more normalized annual range of 1.2 million to 1.6 million starts a year.

"There may be rays of sunlight shining right now, but there are still some clouds in the horizon, particularly in the United States, like the expected continuation of home mortgage foreclosures and the constraining high unemployment numbers," he said.

"For these reasons we continue to be focused on growing our offshore markets"

Shepard said the company emerged from the downturn with a strong balance sheet that will enable it to modernize its facilities and take advantage of growth opportunities.

The company operated at 60 per cent capacity in the first quarter and said it will bring on new capacity if and when demand warrants it.

Earlier this week, the company announced it was adding a third shift at its Polar division planer mill in the north-central B.C. community of Bear Lake.

Canfor also added a second shift at a sawmill in Mackenzie in February and also has plans to re-open its Chetwynd sawmill next month. Both are located in northeastern B.C.

Shares in Canfor gained 33 cents, or three per cent, trading at $10.43 apiece Friday afternoon on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b30723214

[LeftCoaster]

Apparently Vancouver has an aerospace industry... well I'll be damned.

Avcorp seeking $18 million in compensation after Bombardier cancels contract
By The Canadian Press

VANCOUVER, B.C. - Avcorp Industries Inc. (TSX:AVP) said Monday it was seeking more then $18 million in compensation for unrecovered costs in connection with a contract for Bombardier's (TSX:BBD.B) CRJ700 program that was cancelled.

Avcorp said it has filed a "motion to institute proceedings" in Quebec Superior Court on Monday.

The contract with Avcorp was terminated by Bombardier in 2007.

"In the discussions we conducted with Bombardier over the last few months we were not able to reach an acceptable settlement," Avcorp chief executive Mark van Rooij said in a statement.

"We are confident that we will receive a fair decision through this process.'

Avcorp designs and builds airframe structures for aircraft companies.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b033285524

[LeftCoaster]

A&W reorganizes to avoid higher taxes; first-quarter profit grows 25 per cent
By The Canadian Press

VANCOUVER, B.C. - Fast food restaurant operator A&W Revenue Royalties Income Fund (TSX:AW.UN) said Tuesday its first-quarter profit rose 25 per cent due to improved same-store sales.

The Vancouver-based trust said its earnings amounted to $3 million, or 36 cents per share, up from a year-ago $2.4 million, or 28 cents per share, as same-store sales rose 6.1 per cent despite a continued "challenging food service market environment."

The trust holds trademarks representing A&W restaurants for which it receives royalties of three per cent of sales by A&W restaurants in a royalty pool. It said pool sales were up 17.5 per cent in the quarter to $171.7 million from $146.1 million in the same quarter of 2009, while the number of restaurants rose to 700 from 685.

The fund declared a 10-cent-per-unit special distribution payable on May 31 to unitholders of record at the close of business on May 15.

"During the first quarter our advertising and promotions programs were particularly successful in building customer traffic and increasing sales," president and CEO Paul Hollands said in a statement.

"We are very pleased with the same-store sales growth of 6.1 per cent despite what continues to be a challenging food service market environment. In addition, we're pleased that the fund is able to share this success with its unitholders in the form of a special distribution."

The trust also said Tuesday that its unitholders have approved a reorganization of its subsidiary, A&W Trade Marks Inc., with the goal of maximizing cash distributions to unitholders.

The reorganization will replace the subordinated notes of Trade Marks with non-voting common shares. As a result, the trust will receive dividends rather than interest paid on the notes. These dividends won't be subject to the new tax, reducing the tax rate of Trade Marks' earnings to 18 per cent from 25 per cent if the reorganization weren't implemented.

"This structure maximizes cash distributions to unitholders and avoids the high cost of converting to a public corporation," stated John McLernon, chairman of the board of trustees for the fund.

Units of the fund were up nine cents at $16.60 in Tuesday trading on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b042886224

[LeftCoaster]

Angiotech Pharmaceuticals optimistic about growth in proprietary products
By Sunny Freeman, The Canadian Press

Angiotech Pharmaceuticals Inc. expects newer medical devices to drive growth this year after reporting lower first-quarter revenues as a result of flagging royalties from older surgical products.

CEO William Hunter said he is optimistic about growth this year from a number of early stage proprietary products, in particular strong sales from its Quill wound-closure device.

Vancouver-based Angiotech (TSX:ANP) is also touting a new anti-infective line of medical devices to be launched later this year.

"We're starting to see the benefits of investments made several years ago," Hunter said. "The pipeline continues to pump things out and so it really feels like this is a growth trajectory that we should be able to maintain for quite some time going forward."

Hunter said encouraging growth of 21 per cent in its proprietary line in the first quarter - led by Quill and its Option inferior vena cava filter - was offset by lower royalties paid to the company from partners that develop, market and sell products that incorporate its technology.

Angiotech, which keeps its books in U.S. dollars, reported a first-quarter loss of US$6.7 million or eight cents a share for the period ended March 31, reversing a year-ago profit of $12.4 million, or 14 cents a share. Revenues fell to $63.3 million from $88.3 million even as product sales increased to $51 million from $46.1 million.

The company reported a big decline in royalty revenue to $12.3 million from $17.1 million, while licence fees in the quarter dropped off to $53,000, from $25.1 million in 2009 when it received a $25-million one-time payment from Baxter International Inc., in lieu of future royalties.

The majority of its royalty revenues are derived from sales by Boston Scientific Corp. (NYSE:BSX) of its Taxus drug-coated stent used in angioplasty, which were down 25 per cent during the quarter. The company said the sales were hurt by marketing campaigns by Boston Scientific's rivals.

Tom Bailey, Angiotech's chief financial officer, said the royalty business is the source of many of the company's financial "issues." He said he expects revenue declines in that segment to continue at least through second quarter.

"We have no input or control over the sales of Taxus or the revenue figures that are posted," he added.

However, Hunter said Angiotech's proprietary business was off to "a terrific start" adding he is confident that the trajectory of growth in that segment will continue with new initiatives launched in 2010.

The company also plans to launch a new anti-infective line of medical devices that will be "very important," but otherwise gave no details.

RBC Capital Markets analyst Douglas Miehm said Angiotech's results were in line with forecasts and his focus remained on growth of the company's proprietary products.

"We believe Angiotech will likely reach a turning point in 2010 and that the expected growth in the top line will translate into improvements in the earnings trajectory in 2011," he wrote in a note to investors.

Sales of Angiotech's proprietary products totalled $15.7 million or 31 per cent of total product sales, while sales of its more mature base medical products made up $35.3 million, or 69 per cent of its total sales.

Angiotech Pharmaceuticals specializes in drug-coated medical devices.

Shares in the company lost 11 cents to close down almost nine per cent at $1.12 on the Toronto Stock Exchange on Tuesday.

Shares of Angiotech had jumped as much as 16 per cent Monday following the announcement that its Quill suture system will be distributed in the United Kingdom, Ireland and France by B. Braun.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b046592232

[LeftCoaster]

Finning dumps UK rental business for C$171M for 'strategic, financial reasons'
By The Canadian Press
Article Tools

VANCOUVER, B.C. - Heavy equipment dealer Finning International Inc. (TSX:FTT) said Wednesday it is selling its Hewden U.K. equipment rental business to an affiliate of Sun European Partners LLP for about C$171 million "for strategic and financial reasons."

Finning, the world's largest Caterpillar (NYSE:CAT) dealer, said it received 90.2 million pounds in cash plus a five-year loan note receivable of 20 million pounds and a five per cent equity warrant from Sun European.

Vancouver-based Finning said it plans to use the proceeds primarily to pay down its debt.

"While we believe that Hewden's broad product offering combined with our recent restructuring and national accounts focus will serve it well in the future, owning a large, short-term rental business operating separately from our U.K. dealership does not align with our strategic objectives," Finning president and CEO Mike Waites said in a statement.

"Finning remains fully committed to the U.K. Caterpillar dealership and its employees who are strongly positioned to serve the construction, mining and power systems markets."

The deal will trigger a second-quarter accounting loss of about $247 million or $1.44 per share, Finning said, including the realization of $101 million of foreign exchange losses and a $68-million charge on recognition of an unfunded pension liability being assumed by the buyer.

In all, $78 million of the charge comprises the loss on Finning's net carrying value of Hewden.

Hewden covers 63 locations in the U.K. and has 1,300 employees.

Finning will continue to operate 20 branches in the U.K. with 1,470 employees serving Caterpillar dealership customers throughout the UK based from its head office in Cannock, Staffordshire.

Shares in Finning declined 49 cents or 2.6 per cent to $18.64 in morning trading on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b05935215

[LeftCoaster]

Sun-Rype Q1 profits drop 90 per cent as product sales drop, marketing costs rise
By The Canadian Press

KELOWNA, B.C. - Fruit juice and snacks producer Sun-Rype Products Ltd. posted a 90 per cent drop in first-quarter earnings as product sales contracted and marketing costs rose.

The B.C.-based company (TSX:SRF) behind Fruit to Go and FruitSource snack bar said Wednesday its net income dropped to $300,000 or two cents a share in the period ended March 27. That compared with $2.8 million or 26 cents it generated in the corresponding 2009 period.

Net sales fell to $34.5 million from $41 million.

"Lower sales of both beverage and food products in the first quarter of 2010 compared to record sales in the first quarter of 2009, combined with increased investment in marketing contributed to lower earnings in 2010 compared to the same period in 2009", said president and chief executive Dave McAnerney.

The company did not disclose its marketing expenses.

Shares of the company fell 36 cents to $9.63 on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b05970015

[Spork]

SunRype is unsurprising. They have really failed to keep up with market changes in some of their core products.

[Locked In]

Some more good business news:


Vancouver tops list of best business tax climates

By Derrick Penner and Brian Morton, Vancouver Sun - May 13, 2010 8:18 AM

http://www.vancouversun.com/business/2940461.bin
The host of the 2010 Winter Games now offers the best business tax climate of 41 cities measured around the world.
Photograph by: Jamie Squire, Getty Images, Getty Images

Two major tech players announced this week they are taking up significant office space in Vancouver, as global financial data cruncher KPMG announced the host of the 2010 Winter Games now offers the best business tax climate of 41 cities measured around the world.

That news comes amid a flurry of first quarter reports from Vancouver-based companies showing significant improvements over their performances during the depths of the recession one year ago, some even reporting complete turnarounds from red ink to black. And a report from PricewaterhouseCoopers shows B.C.'s vital mining industry rode out the recession with a collective profit of over $2 billion, positioning it well for an anticipated increase in commodities demand.

That came just days after the head of Canada's forest industry said the U.S. housing market recovery is steadily improving.

The United States is the biggest customer of B.C. lumber.

"The recession is over and we're in the relatively early stages of what looks to be a fairly decent recovery," Jock Finlayson, executive vice-president of the Business Council of B.C., said in an interview after the Conference Board of Canada on Monday predicted 3.8-per-cent growth for the provincial economy this year.

"Much of this has to do with what's happening in the wider world, in other words it's not a B.C.-only story. The U.S. economy is growing and many forecasters are upgrading their projections for 2010."

Provincial Finance Minister Colin Hansen said he found the signs that some of the recovery will come from the relocation of technology firms particularly encouraging.

"This is not sort of a one-industry driven recovery, which is, again, healthy for the future of the British Columbia economy," Hansen said.

Canon Canada said it will open in downtown Vancouver a new headquarters for its B.C. operations after its B.C. Business Solutions Division team doubled over the past year.

Canon made a splashy show of its Vancouver commitment, staging a gala luncheon featuring 2010 Olympic gold medallist Maelle Ricker and a performance by Grammy- and Juno Award-winning artist Sarah McLachlan. As well, it had Vancouver Mayor Gregor Robertson on hand to accept a $60,000 donation to Vancouver's Community Urban Agriculture Fund. The new office at 999 West Hastings St. will open June 1.

Mason Olds, senior vice-president and general manager, Imaging Systems Group, Canon Canada Inc., said in a statement that Vancouver's status as a world-class business centre has helped his company grow. He said the new office will support Canon's business product line, including networked multi-function devices, digital copiers, printers, scanners, image filing systems and facsimile machines.

The mayor's office also announced Wednesday that Plug and Play, a Silicon Valley company and business incubator that has helped start hundreds of technology and life science companies, will open its first Canadian office in Vancouver.

"Plug and Play is a major player in Silicon Valley, accelerating startups and creating thousands of jobs in the process," Robertson said in an interview. "We expect to see the creation of hundreds of new jobs through Plug and Play activity in Vancouver."

Plug and Play plans to create a pilot project tech-support centre in 2010, with the goal of eventually establishing a permanent centre that will work with other partners to support up to 30 new business startups every year.

Plug and Play CEO Saeed Amidi said in an interview that Plug and Play is still searching out office space, but expects to lock up 40,000 to 50,000 square feet.

According to a special report on taxation released Wednesday by KPMG, Vancouver ranks first among 41 major international cities for tax competitiveness. The report assesses the general tax competitiveness of 95 cities in 10 countries, focusing on 41 major cities with populations greater than two million, and compares the total tax burden faced by companies, including income tax, capital tax, sales tax, property tax, miscellaneous local business taxes and statutory labour costs.

A lower score is better since it means lower tax costs for businesses.

The report places Vancouver first, Montreal fourth and Toronto fifth.

Vancouver, with a score of 50.5, compared favourably with Seattle, which scored at 92.1.

depenner@vancouversun.com

bmorton@vancouversun.com
© Copyright (c) Canwest News Service


Source: Vancouver Sun (http://www.vancouversun.com/business/Vancouver+tops+list+best+business+climates/3020899/story.html)

[LeftCoaster]

I saw that article too, no new news, as BC's corporate tax rates have been declining since the demise of the NDP party, but nice to see some tangible results.Canon expanding their operations here but the real prize here seems to be plug and play. I dont know much about the business but firms like this with deep connections to the tech world and venture capital money are great to have in any city.

Anyway this is probably the most long lasting impact of the Campbell government, and its the one that is probably the least talked about. Lowering the corporate tax rates and keeping it competitive is the best thing we can do for this province.

[LeftCoaster]

Premium Brands says first quarter profits rise to $1.8 million, revenue higher
By The Canadian Press

VANCOUVER, B.C. - Premium Brands Holdings Corp. (TSX:PBH) says its profits rose to $1.8 million in the first-quarter as the maker of specialty food products saw growth in its retail division.

The company said net income was worth 10 cents per share for the period ended March 27. That compared to $2.1 million, or 12 cents per share, in the same quarter ended Mar 28 last year.

Revenue moved ahead 5.6 per cent to $109.7 million from $103.9 million.

"In general terms, we are pleased with our first-quarter performance given the continued weakness of Western Canada's economy," said president and CEO George Paleologou in a release.

The retail division reported record sales of $51.9 million, versus $47.5 million year-ago, and also record earnings of $4.3 million from $2.8 million.

Paleologou said it's retail strength was helped from "continued focus by all of our businesses on margin expansion and cost management."

The food services division, which supplies restaurants, said sales rose to $57.8 million from $56.4 million, while earnings were $2 million versus $1.9 million last year.

"We are encouraged by the improving tone of the overall economy and the positive signs of recovery that we are starting to see in our more economically sensitive food service and convenience store focused businesses," Paleologou said.

Premium Brands produces, markets and distributes branded specialty food products, and its family of brands include Grimm's, Harvest, McSweeney's, Bread Garden Express, Hygaard, Hempler's, Quality Fast Foods, Gloria's Best of Fresh, Harlan's, Creekside Bakehouse, Centennial Foodservice and B&C Foods

The company has operations in British Columbia, Alberta, Saskatchewan, Manitoba and Washington State.

Shares of Premium Brands were down 45 cents to $12.55 near midday Friday on the Toronto Stock Exchange.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b072407921

[LeftCoaster]

Double good news for B.C. lumber producers: prices go up, taxes vanish
By The Canadian Press

VICTORIA, B.C. - B.C. lumber producers are getting a double dose of good news - prices are rising and the tax they pay to ship their product to the U.S. is disappearing on June 1.

Under the Softwood Lumber Agreement signed with the U.S. in 2006, softwood lumber taxes are tied to the average price of lumber, and when the price goes up the tax comes down.

Prices have now risen so much the tax will be eliminated entirely, at least for the month of June.

Forests Minister Pat Bell says that in two months the export tax has dropped from 15 per cent to zero.

He says although prices have softened over the last week and may continue to fluctuate, the loss of the export tax during June will leave companies with more cash to invest in their mills.

The tax will be reinstated if prices fall again.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b073801625

[LeftCoaster]

Lions Gate loses appeal to restore poison pill in British Columbia court
By The Associated Press

LOS ANGELES, Calif. - Niche movie studio Lions Gate Entertainment Corp. on Friday lost an appeal to restore a shareholder rights plan that would have prevented a takeover bid from billionaire investor Carl Icahn.

The B.C. Court of Appeal dismissed the case. It has jurisdiction over Lions Gate, the distributor of superhero movie "Kick-Ass," because it is based in Vancouver although it operates out of Santa Monica.

The decision will allow shareholders to sell their shares to Icahn, who has offered US$7 apiece. Last week, Icahn extended his offer until May 10.

Lions Gate called the offer too low and on Friday again urged shareholders not to sell and to withdraw shares they had already tendered.

The company said it "continues to evaluate all of its alternatives" in trying to restore the rights plan. A vote on the plan is still being held on May 12 and the company urged a vote in favour, despite the fact that B.C. regulators have rendered it ineffective.

The company also warned that if Icahn increased his stake by a mere 1.26 per cent, it could cause the company to default on its loans.

Icahn did not immediately respond to a request for comment.

The shares rose 12 cents, or 1.8 per cent, to $6.68 in after-hours trading after closing down 16 cents at $6.56 in the regular session Friday.

A transcript of the court's oral ruling was not immediately available. While it was unclear why the appeal failed, the British Columbia Securities Commission on Friday released a condensed version of its reasons for voiding the plan last week.

"Takeover bids should leave shareholders of a target company free to make their own decisions whether to accept or reject the bid," the commission said in a release.

The commission has allowed other companies to use so-called "poison pill" plans to give them time to seek another potential buyer. But Lions Gate wasn't seeking a competing bid for shareholders to consider, the commission said.

Icahn controls nearly 19 per cent of Lion's Gate's shares. He said last week that 6.6 million shares, or about 5.6 per cent of the outstanding shares, had been tendered so far.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=T3296290

[LeftCoaster]

Rainmaker Entertainment Q1 loss drops to $406,000 from $2.7M on higher revenue
By The Canadian Press

VANCOUVER - Rainmaker Entertainment Inc.'s first-quarter loss was cut substantially as the computer animation company's revenue improved, boosted by its work in an animated short and a feature film.

The company posted a loss of $406,000 or two cents a share in the first three months of March 31. That's down nearly 85 per cent from a loss of $2.7 million or 16 cents a share in the same period last year.

Revenue for the quarter jumped to $5.1 million from $4 million.

Vancouver-company Rainmaker (TSX:RNK) said it recently completed an animated short that will be featured at the Canadian Pavilion for the World Expo in Shanghai.

It also worked on two DVD films for U.S. toy company Mattel and continued to work on a feature film Escape from Planet Earth at a scaled down level. But the company warned of a 'possible disengagement' from the project.

"Rainmaker continues to work with its client to consider production options," it said in a release.

Rainmaker is involved in the production and distribution of animated films and television programs.

Shares of the company last traded May 5 at 40 cents on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=A3316754

[LeftCoaster]

Bokoni platinum mine ramping up following strike, labour shakeup
By The Canadian Press

VANCOUVER - Anooraq Resources Corp. (TSXV:ARQ) stock gained eight per cent Monday after the company confirmed it will add 30 production teams to its flaghip operation, Bokoni Platinum Mines, in South Africa.

The company's stock gained 11 cents or eight per cent to $1.48 on the TSX Venture Exchange. The shares hit a 52-week high of $1.80 on May 3 but fell to $1.37 by the end of the week's trading.

The company has said previously that it wanted to reduce the number of people employed in services at the mine complex and increase the number assigned to production.

About 840 personnel, or 25 per cent of the Bokoni workforce, was affected including 103 who were dismissed. In addition, 153 were retrenched and 374 employees were transferred from service positions ito production activities.

Anooraq said Monday that the number of stoping teams in service by the end of 2010 will be about 100, up from 70 currently.

The company took over operational control of Bokoni last July and spent the next six months revamping its labour forcce, with union agreements reached in December.

"We now have the right people in the right jobs, ready to maximise efficiencies both from a production and cost perspective," Philip Kotze, Anooraq's chief executive said Monday.

"We believe the benefits of this restructuring should start to bear fruit at the operations during the second quarter of 2010."http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=H3317390

[LeftCoaster]

Ont., B.C. economies shrug off impact of HST, lead recovery: Conference Board
By Sunny Freeman, The Canadian Press

TORONTO - Ontario and British Columbia will lead a countrywide recovery from last year's downturn despite the impact of a controversial new tax regime being introduced in both provinces, the Conference Board of Canada predicts in a new report.

Both will see their economies grow by 3.8 per cent in 2010 despite the fact they are also introducing the harmonized sales tax on July 1 — moves expected to raise consumer prices and temporarily dampen spending, the private-sector economic forecaster said in its Provincial Outlook report published Monday.

Overall, Canada's real gross domestic product is expected to be up 3.2 per cent compared with last year, which began with one of the deepest recessions in decades following the financial crisis that erupted in the final months of 2008.

The Conference Board expects growth to be even stronger in 2011, advancing to 3.3 per cent, as increasing private capital investment and improving trade with the United States offset subsiding federal and provincial government spending.

"We have a positive growing picture for the country as a whole...this year being the sort of front-end load," said Sabrina Browarski, a Conference Board economist.

Recovery in key trade sectors — manufacturing and autos in Ontario and forestry and construction in B.C. — will drive strong economic performances that will outlast a temporary drop in consumer spending when provincial sales taxes are added to goods and services that were previously exempt, Browarski said.

She added that new fiscal stimulus spending in B.C. and Ontario will help offset higher consumer prices when the HST kicks in.

"Money's being given back to households in droves in 2010 and onward to offset for the implementation of harmonization," said Browarski.

Ontario will garner an extra $2.3 billion in revenues from the HST by the end of 2014, but it has also set aside $1.7 billion to $2.5 billion in increased transfers to households and $1.3 billion in annual tax cuts. And B.C. has added an extra $300 million in total rebates to taxpayers over the period, she added.

Last year was especially hard on Ontario because of problems in the auto industry — including the temporary closures of virtually all North American factories owned by General Motors and Chrysler — and the broader manufacturing sector.

But employment has risen since the second half of 2009 and recovery in the labour market will bolster consumer spending on big-ticket items in the province, the report said.

In B.C., economic growth will be driven by the impact of the Vancouver Olympics earlier this year and a vast improvement in the forestry, manufacturing, and construction sectors, the report said.

Jon Kesselman, a professor of public policy at Simon Fraser University and the Canada research chair in public finance, said the HST will raise the cost of living in Ontario and B.C. by only seven-tenths of a percentage point.

"That, in itself, is not enough to disrupt economic growth that is coming from a variety of sources, including recovery from a recession, provincial spending, the U.S. economy at least showing some recovery, and world markets generally."

Kesselman added that the tax is actually designed to shore up investment in those provinces by relieving some of the tax burden on businesses.

"It's hard to say whether it will offset the slight dampening effect on consumers in 2010, but over the longer term, it will be substantial and will give stimulus to economic growth in those two provinces," he said.

The introduction of the single tax system in Ontario and B.C., which is used in Quebec and the Atlantic provinces, will bring more unity across jurisdictions, making the country more business friendly, said Andrew Dunn, managing partner for tax at Deloitte Canada.

"As we look at making Canada a more attractive jurisdiction for large multinationals, the fact that we now have two more provinces that are lining up their sales tax systems, it's good for Canada," he said.

"Ultimately, the Canadian economy is going to be better off if large multinationals want to operate in Canada."

Meanwhile, the Conference Board predicts only Alberta and Saskatchewan will join Ontario and B.C. with better than three per cent growth rates.

Alberta will benefit from a revival in drilling activity and stronger capital investment in the oilsands, but continued weakness in job creation will limit economic growth to 3.3 per cent this year, the report says.

Saskatchewan’s economy is expected to grow by 3.5 per cent this year. The potash industry is slowly recuperating as global demand for fertilizers strengthens, while the agricultural sector as a whole is also expected to fare better this year, the Conference Board said.

The board said the rebound from last year's downturn will be more gradual for most other provinces, with growth forecast at above two per cent.

New Brunswick will have the smallest gain in 2010, with its gross domestic product expected to grow by only 1.8 per cent over last year, it said.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=H3314780

[giallo]

I saw that article too, no new news, as BC's corporate tax rates have been declining since the demise of the NDP party, but nice to see some tangible results.Canon expanding their operations here but the real prize here seems to be plug and play. I dont know much about the business but firms like this with deep connections to the tech world and venture capital money are great to have in any city.

Anyway this is probably the most long lasting impact of the Campbell government, and its the one that is probably the least talked about. Lowering the corporate tax rates and keeping it competitive is the best thing we can do for this province.

I was just thinking the same thing,

Whether you love Campbell or hate him, it's pretty hard to deny his work towards making BC a viable place to do business again.

[LeftCoaster]

^yeah to be honest i dont really care for the guy personally, and I disagree with a lot of things he does, but his tax policies have done enough good to get my vote again and again.

Sorry for the big update here guys, but I've been really busy and not up to date with my posting.

Lots to read!

[LeftCoaster]

First Quantum Minerals reports first-quarter profit of US$146.2 million
By The Canadian Press

VANCOUVER - First Quantum Minerals Ltd., which keeps its books in U.S. dollars, said Monday it earned US$146.2 million or $1.81 per share for the quarter ended March 31 compared with a profit of $10.9 million or 16 cents per share a year ago. Revenue totalled $562.8 million, up from $261 million.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=T3320216

[LeftCoaster]

Canfor to restart sawmill in Quesnel, B.C., in June, to recall 155 workers
By The Canadian Press

VANCOUVER - Canfor Corp. (TSX:CFP) said Monday it will restart operations at its sawmill in Quesnel, B.C., in June because of demand from China.

The lumber producer said it will recall approximately 155 employees.

The mill will produce approximately 200 million board feet of SPF lumber on an annual basis. It will produce metric sizes and its entire output will be shipped to China.

Canfor president and CEO Jim Shepard said it will be the first time the company has dedicated a sawmill to one country.

"Providing this dedicated production into the Chinese market shows our confidence in the growing demand in this developing market," Shepard said in a statement.

Last month, Canfor said it turned its focus to Asia after the economic downturn slashed U.S. demand for Canadian lumber.

The Vancouver-based lumber producer (TSX:CFP) shipped about 25 per cent of its products offshore during the first quarter — about half of that going to China — while 20 per cent was used domestically and the rest bound for the U.S.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=T3321032

[LeftCoaster]

Western Copper denied key water license for its Carmacks copper project
By The Canadian Press

VANCOUVER - Western Copper Corp. (TSX:WRN) said Monday that it has been denied a water use license for its Carmacks copper project in the Yukon.

The company said it was disappointed by the decision and concerned that it was inconsistent with previous decisions.

Western Copper had hoped to build an open-pit copper mine as part the project, about 220 kilometres north of Whitehorse.

The company has four projects including Carmacks and the Casino project, both located in the Yukon.

Shares in the company were up five cents at $1.91 on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=T3321165

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Pan American Silver reports Q1 profit of US$19.1 million, up from year ago
By The Canadian Press

VANCOUVER - Pan American Silver Corp. (TSX:PAA) more than doubled its quarterly profit compared with a year ago as revenue grew nearly 90 per cent.

The silver miner, which keeps its books in U.S. dollars, said Monday that it earned US$19.1 million or 18 cents per share for the quarter ended March 31 compared with a profit of $6.6 million or eight cents per share a year ago.

Sales during the quarter rose to $132.4 million, from $70.4 million in the first quarter of 2009.

Silver production totalled 5.5 million ounces, up from 4.9 million ounces.

Pan American has eight mines in Mexico, Peru, Argentina and Bolivia.

Shares in the company, which reported its results after the close of markets, were up 26 cents at $26.37 on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=T3321370

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Building materials supplier CanWel reports Q1 profit on better economy
By The Canadian Press

VANCOUVER - CanWel Building Materials (TSX:CWX) had a profit of $4.1 million in the first quarter of 2010, reflecting the strengthening economy, the company said Tuesday.

That profit compares with a loss of $448,000 in the same period a year ago, CanWel said.

"The first quarter results are a reflection of the strength of the economic recovery and its impact on CanWel's business, as well as having only two months of Broadleaf's results now included," chairman and CEO Amar Doman said in a news release.

CanWel recently acquired Broadleaf Logistics Company, a privately owned national distributor, in a cash, stock and debt transaction worth about $81 million.

"We are progressing on our integration plan, and these efforts will unfold later in the year," Doman said.

The Vancouver company has said Broadleaf will give CanWel more flexibility for future growth and better access to capital to fund that growth.

Earnings per diluted share were eight cents for the quarter ended March 31, compared with a one cent loss in the same period a year ago.

"We are well underway with the Canadian building season now, and we enjoyed an early start to spring in almost all areas of Canada," Doman said.

CanWel said net income was $3.6 million or seven cents per share excluding the impact of one-time items.

During the three-month period, CanWel reported sales of $272 million, compared with $136 million for the comparable period in 2009.

CanWel distributes a range of hardware, building materials, lumber and renovation products across the country.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=H3324763

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Northgate Minerals reports reduced first-quarter profit of US$4.9 million
By The Canadian Press

VANCOUVER - Northgate Minerals Corp. (TSX:NGX) says its first-quarter profit fell 77 per cent amid lower gold and copper production.

The Vancouver-based mining company, which reports in U.S. dollars, said Tuesday it earned $4.9 million or two cents per share in the first quarter, compared to $21.4 million or eight cents per share a year ago. Revenue was $125.3 million, slightly higher than $123.8 million in the same period of 2009 due to higher metals prices.

Northgate said it produced 73,362 ounces of gold at an average net cash cost of $654 per ounce in the quarter, compared to 107,477 ounces at a cost of $396 per ounce in the first quarter of 2009. The company produced 9.5 million pounds of copper compared to 15.0 million pounds a year ago.

Meanwhile, Northgate sold 75,128 ounces of gold at a realized price of $1,128 per ounce and 11.1 million pounds of copper at a realized price of $3.49 per pound. This compares to 106,684 ounces of gold at $934 per ounce and 13.0 million pounds of copper at $2.07 per pound in the same period last year.

Northgate expects to produce 310,000 ounces of gold at a cash cost of $553 per ounce in 2010.

The company, which has operations in Canada and Australia, said it expects to begin construction of its Young-Davidson project in northern Ontario this summer.

Shares in Northgate added 11 cents to $3.32 in morning trading on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=T3325199

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Boston Pizza first-quarter net earnings slip to $4.7 million from $5.2 million
By The Canadian Press

VANCOUVER - Boston Pizza Royalties Income Fund says its net earnings slipped during the first three months of 2010 as the food company saw a 5.4 decrease in same-store sales growth.

The earnings, released Tuesday, amounted to $4.7 million, or 34 cents per unit, compared to $5.2 million, or 35 cents per unit.

System-wide gross sales were $204.5 million, down from $209.6 million during the first quarter of 2009.

Earnings before income taxes and dilution gains or losses were $4.8 million, or 34 cents per unit, versus a year-ago $4.9 million, or 33 cents per unit.

"We are pleased that cash earnings per unit have increased despite the softer sales environment as a result of the fund's unit buyback programs," co-chairman and owner George Melville said in a statement Tuesday.

Boston Pizza (TSX:BPF.UN) says it's same-store sales growth was 5.4 per cent lower than the first quarter of 2009, when a national marketing campaign provided a boost.

The company expects to open 10 to 15 new restaurants across Canada this year.

"Boston Pizza continued to feel the effects of the prevailing weaker economic conditions on franchise sales during the first quarter of 2010. However, our strategic marketing programs and overall focus on the guest experience in our restaurants will help us regain sales momentum as the economy recovers," said Melville.

Boston Pizza has 340 restaurants across Canada, most of which are run as franchises.

The company's units fell three cents to $11.36 on the Toronto Stock Exchange around midday Tuesday.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=T3325752

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Vancouver's Quadra Global to buy systems integrator Tri-M Systems for undisclosed price
By The Canadian Press

VANCOUVER - Vancouver-based private investment firm Quadra Global Capital Corp. says it has signed a deal to acquire B.C.-based Tri-M Systems Inc., a systems integrator and distributor and Tri-M Engineering, a tech design and manufacturing company.

Financial terms for the transaction, announced Tuesday, were not disclosed.

The acquisition is slated to close by Nov. 1.

"The acquisition of both Tri-M Systems and Tri-M Engineering integrates well with Quadra's strategic plan for growth in the Canadian and US markets," said Perry Anderson, CEO and managing director of Quadra Global.

"We are very enthusiastic about the embedded systems sector and are eager to work with the management teams of both respective entities to build enterprise value through organic growth and potential add-on acquisitions."

An embedded system is a computer system designed to perform one or a few dedicated functions often with real-time computing constraints.

Tri-M is based in Port Coquitlam, B.C. and has a sales office in Toronto and a manufacturing plant in Taiwan.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=H3328299

[LeftCoaster]

Ivanhoe increases forecast for Mongolian mine; investors unimpressed
By Kristine Owram, The Canadian Press

TORONTO - Ivanhoe Mines Ltd. has dramatically increased its production estimates for the Oyu Tolgoi mine in Mongolia, to 1.2 billion pounds of copper and 650,000 ounces of gold annually for the first 10 years.

This would make the mine — which Vancouver-based Ivanhoe (TSX:IVN) owns jointly with international mining giant Rio Tinto PLC (NYSE:RTP) and the Mongolian government — one of the top three copper and gold producers in the world.

The estimates, released Tuesday, mark the first time Ivanhoe has updated its development plan for the project in five years.

The company said its latest measured and indicated reserve estimate for the mine is 40.7 billion pounds of copper and 21 million ounces of gold, with additional inferred resources of 40.6 billion pounds of copper, 6.2 per cent higher than a 2008 estimate, and 25.3 million ounces of gold, 4.8 per cent higher.

And under a broader estimate that includes the more speculative inferred resources, the mine is forecast to produce 52.5 billion pounds of copper and 26.4 million ounces of gold over its projected 59-year life. The forecast copper production is 50 per cent higher, while estimated gold production is 126 per cent higher, than projections that were released in 2005.

The mine is expected to begin producing in 2013, and is "designed to be robust at US$2 copper and $850 gold," executive chairman Robert Friedland said on a conference call.

"It has a long life and an early payback," he said, adding that under current metals prices, the project's costs would be recouped within four and a half years.

Markets were unimpressed by the revised estimates. Shares in Ivanhoe lost $1.05 or more than six per cent to $15.49 in Tuesday trading on the Toronto Stock Exchange.

BMO Capital Markets analyst John Hayes said the company's capital cost estimate for the mine — US$4.6 billion for an open pit and one underground section — exceeded his forecast of $4.6 billion, which also included the cost of a power plant and a second underground section.

He described Ivanhoe's forecasts as "a very top level view of the project."

And Raymond James analyst Tom Meyer warned in a recent research note that financing risks and potential delays had not yet been factored into Ivanhoe's share price.

Ivanhoe said the new estimates give the mine's owners the green light to begin construction.

"Ivanhoe Mines believes that these results will continue to improve and that Oyu Tolgoi will stand tall with established giants like Grasberg and Escondida in the pantheon of the world's greatest mines," Friedland said.

"The tremendous increase in gold production spotlighted in this latest plan is especially significant in light of the current expectations for the price of gold."

Ivanhoe also said it is in discussions with global investment banking firm Citi and independent mining sector specialist Hatch Corporate Finance about its financing options for the project.

An investment agreement for the mine between Ivanhoe and the Mongolian government finally took full legal effect in March after years of wrangling.

The agreement, signed in October, will see the Mongolian government take a 34 per cent interest in the project. Ivanhoe owns the other 66 per cent and Rio Tinto also holds a stake through its ownership of about 22 per cent of Ivanhoe. Rio Tinto holds options to increase that stake to 46.6 per cent.

Ivanhoe and Rio Tinto have approved a $758-million budget for 2010 to launch full-scale construction of Oyu Tolgoi by the second quarter.

In addition to Oyu Tolgoi, Ivanhoe has interests in coal, gold and copper resources in Mongolia, Australia and Kazakhstan.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=A3324657

[LeftCoaster]

Glacier Media's profit and revenue rise with help from economic recovery
By The Canadian Press

VANCOUVER - Newspaper and magazine publisher Glacier Media Inc.'s (TSX:GVC) first-quarter profit rose to $5.4 million from a year-ago $2.4 million, while revenue was up 4.9 per cent to $57.5 million as the economy recovered.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3334914

[LeftCoaster]

Eldorado Gold to buy Brazauro for $122.4M in share-swap deal
By The Canadian Press

VANCOUVER - Eldorado Gold Corp. (TSX:ELD) has agreed to buy the stock it does not already own of Brazauro Resources Corp. (TSXV:BZO) for $122.4 million in a share-swap deal.

Eldorado said Wednesday it has offered 0.0675 of a share for each share of Brazauro, which owns the Tocantinzinho gold project in Brazil. Eldorado already holds 17.2 per cent of Brazauro.

It is considering a new spinout of a new Brazauro that would value each of the company's shares at $1.33 per share, a 92 per cent premium to its closing price on Tuesday.

Eldorado has committed to funding the new company, which would hold some exploration properties currently owned by the old Brazauro, with a $10-million investment. Current Brazauro shareholders would also get one share of the new company.

"Unified project ownership represents the best chance for development of profitable and responsible mining operations at Tocantinzinho and our intention is to continue with an intensive exploration program with the objective to establish a basis for successful mining operations," Eldorado president and CEO Paul Wright said in a statement.

The boards of both companies have approved the deal, which requires approval by the customary two-thirds of Brazauro shareholders.

Shares in Eldorado were up 42 cents at $18.46 in morning trading on the Toronto Stock Exchange, while Brazauro stock gained 88 per cent to $1.30 on the TSX Venture Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3335195

[LeftCoaster]

Gold Wheaton rebounds to profit as revenues double on higher prices
By The Canadian Press

VANCOUVER - Gold Wheaton Gold Corp. (TSX:GLW) says a swing to profitability in its first quarter was helped by climbing precious metals prices.

Vancouver-based Gold Wheaton, which reports in U.S. dollars, said Wednesday it earned $900,000, or one cent per share in the quarter ended March 31, rebounding from a loss of $800,000 or one cent per share in the first quarter last year.

Revenue from the sale of precious metals nearly doubled to $21.2 million from $12.4 million last year, as the price of gold, platinum, and palladium rose 22 per cent, 53 per cent and 121 per cent, respectively.

Gold Wheaton is a gold company with long-standing agreements to purchase and resell gold from miners including FNX Mining Company Ltd. (TSX:FNX) and First Uranium Corp. (TSX:FIU).

"FNX continues to operate as planned and we look forward to growing our revenues as the year progresses," said Gold Wheaton CEO David Cohen.

Earnings from mining operations jumped by 180 per cent to $10.5 million from $3.7 million in the first quarter of 2009, due to higher ounces delivered and improved prices.

Operating cash flow for the quarter increased to $3.5 million from $3.3 million, but was lower than the company expected due to timing issues with its accounts receivables and the impact of the Vale Inco strike on deliveries from FNX to Gold Wheaton.

Its quarterly earnings included adjustments for an interest expense of $3.4 million, a non-cash stock-based compensation expense of $3.1 million and foreign exchange losses of $2 million and future income tax expense of $1 million.

After the quarter ended, the company acquired C$20 million in convertible notes issued by First Uranium.

"We are pleased that the restructuring of First Uranium has been completed and that they can now concentrate on growing their production at both Mine Waste and Ezulwini," Cohen said.

Gold Wheaton graduated to trade on the Toronto Stock Exchange from the venture exchange in February, after the company completed a share consolidation.

Shares in the company gained 13 cents or five per cent to trade at $2.66 Wednesday morning on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3335773

[LeftCoaster]

Farallon Mining earnings rise to US$6.2M from nil
By The Canadian Press

VANCOUVER - Farallon Mining Ltd. (TSX:FAN), a Vancouver-based zinc miner, reports it earned US$6.2 million in net profits in the first quarter, compared with nil in earnings a year earlier.

Revenues rose to US$37.6 million from $32.3 million, the company said Wednesday.

Farallon's G-9 mine in Mexico produced a record 25 million pounds of zinc and 2.1 million pounds of copper.

"The G-9 mine has increased production every quarter since production began in the first quarter of 2009" president and CEO Dick Whittington said in a release.

"Quarterly production has steadily increased from 1,180 tonnes per day to 1,650 tons per day, a 40 per cent increase over the last 15 months. With improvements in throughput to over 1,900 tonnes per day in March and April and metallurgical improvements being made, the G-9 mine is now providing steady cash flow and a base from which we can deliver on our objective of becoming a mid-tier, multi-mine company."

In trading on the TSX, Farallon shares fell one cent to 57 cents, a drop of 1.7 per cent.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3336950

[LeftCoaster]

Aurizon Mines Q1 profit shrinks to $2.2M amid higher dollar, lower ore grades
By The Canadian Press

VANCOUVER - Aurizon Mines Ltd. (TSX:ARZ) said its first-quarter profit shrunk by 57 per cent due to the impact of a higher Canadian dollar and lower-than-average ore grades.

The Vancouver-based gold miner said Wednesday it earned $2.2 million or one cent per share in the quarter, compared to $5.1 million or three cents per share a year earlier.

After removing the impact of one-time derivative gains, the company reported an adjusted net loss of $100,000 compared to adjusted earnings of $5.8 million in the same period last year.

Revenue was $39.8 million, down from $42.9 million in the first quarter of 2009.

Aurizon said it sold 34,424 ounces of gold at an average realized price of US$1,010 per ounce in the quarter, compared to 37,400 ounces a year ago at $888 per ounce.

"As previously indicated, we are currently in a mining sequence at Casa Berardi where we are mining areas with lower-than-average reserve grades," stated president and CEO David Hall.

"This has caused a temporary decline in performance from previous quarters. We anticipate completing the mining of the lower grade material by the fourth quarter of this year, paving the way for increased gold production and lower costs per ounce in future years."

Aurizon, which owns the Casa Berardi mine in northwestern Quebec, said it is on track to meet its production guidance of 145,000 to 155,000 ounces of gold in 2010.

Shares in Aurizon fell 35 cents or nearly six per cent to $5.59 in Wednesday trading on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3337917

[LeftCoaster]

B.C. mining industry's profits stay at historical highs in 2009 despite downturn
By The Canadian Press

VANCOUVER - Profits in British Columbia's mining industry remain at historically high levels despite the effects of a global recession and lower commodity prices, according to a new report.

The report, released Wednesday by PricewaterhouseCoopers, says B.C.'s mines earned $2.3 billion for 2009. This was down 28 per cent from $3.2 billion in 2008 but was close to the profits seen in 2007, which at the time was a record.

"The industry weathered the global economic downturn better than most," stated Michael Cinnamond, leader of the advisory firm's B.C. mining practice and co-author of the report.

"Even so, the mines in B.C. were faced with lower shipments and weaker prices across the board last year due to a drop in overall economic activity just about everywhere. Coal, which dominates B.C.'s mining sector, experienced a 24 per cent decline in volumes shipped and prices fell by almost half."

According to the report, total metals and coal shipments from B.C. mines dropped 21 per cent to 21.3 million tonnes in 2009, but overall employment stayed at 2008 levels.

Shipments of metallurgical coal fell to 16.9 million tonnes in 2009 from 22.3 million tonnes in 2008, while coal prices dropped dramatically to US$157 a tonne from $260 a tonne.

Copper concentrates, the second most important contributor to revenues, brought in $1.2 billion in 2009, up three per cent, even as the average price of copper fell 26 per cent to US$2.35 a pound and shipments fell 14 per cent to 730,000 tonnes.

Zinc revenues dropped 20 per cent to $587 million, while a 12 per cent rise in the average gold price pushed gold revenues up by 34 per cent to $309 million. Silver sales also grew in 2009, up six per cent to $288 million.

And average prices for molybdenum, a metal used in stainless steel, plunged 61 per cent, pushing moly revenues down 49 per cent to $241 million.

The report also polled 34 CEOs of B.C.-based mining companies in late April and found that 61 per cent believed their businesses have returned to normal, while 50 per cent were actively pursuing new properties, acquisitions or mergers.

The mining industry contributed $5.7 billion to the provincial economy in 2009.

Vancouver is headquarters to many of Canada's largest miners, including coal, zinc and copper giant Teck Resources (TSX:TCK.B), international gold producer Goldcorp (TSX:G) and a host of other base metals and gold producers.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3338507

[LeftCoaster]

Lululemon goes from minority to majority shareholder in Aussie yoga brand
By The Canadian Press

VANCOUVER - Yoga wear retailer Lululemon Athletica Inc. has gone from a minority shareholder to majority owner in an Australian yoga retailer.

Vancouver-based Lululemon (TSX: LLL) said Wednesday it has increased its equity interest in its Australian joint venture partner, New Harbour Yoga Pty Ltd., from 13 per cent to 80.3 per cent for an undisclosed amount.

"We are extremely pleased to announce this evolution in our business,” Lululemon CEO Christine Day said in a statement.

The chain says the increased ownership interest provides a solid foundation for Lululemon's expansion in the Australian market.

David Lawn, who leads Lululemon’s operations in Australia, and one other investor own the remaining 19.7 per cent interest.

“Over the past four years, we have enjoyed an excellent partnership with David Lawn, who has been instrumental in growing the Lululemon business in key Australian locations including Sydney, Melbourne, Perth and Brisbane," Day said.

For his part, Lawn said "we are thrilled with Lululemon’s decision to continue to grow the brand throughout Australia.”

“Today’s announcement is confirmation of the strength of the Lululemon brand in our local markets and we are pleased to be able to serve additional customers through new locations."

Lululemon first entered the Australian market in October 2004 and has expanded to nine stores and four showrooms there.

The retailer has been rapidly expanding from its core Canadian stores into the U.S. and abroad.

Lululemon was founded in 1998 in Vancouver and now operates more than 100 stores in Canada, the United States and Hong Kong.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3341111

[LeftCoaster]

Silvercorp Metals earns $9.8 million amid significantly higher revenues
By The Canadian Press

VANCOUVER - Silvercorp Metals Inc. (TSX:SVM) says it earned $9.8 million in its fiscal fourth quarter, more than seven times higher than a year earlier amid improved sales.

The Vancouver-based silver miner said Wednesday its profit amounted to six cents per share, up from $1.2 million or one cent per share a year earlier due to higher metal production and higher realized selling prices. Sales amounted to $28.2 million, 62 per cent higher than $17.4 million in the same period of last year.

Production for the three months ended March 31 was 1.08 million ounces, up 4.2 per cent from the same quarter of last year, at total cash costs of negative $5.64 per ounce.

For the fiscal year 2011, Silvercorp said it expects a 13 per cent increase in silver production to 5.3 million ounces, generating revenue of $140 million.

Silvercorp owns silver properties in China and Canada.

Shares in Silvercorp, which reported after markets closed, added 44 cents or five per cent to $9.17 in Wednesday trading on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3343301

[LeftCoaster]

Silver Wheaton earnings nearly triple to US$44.6M amid higher silver production
By The Canadian Press

VANCOUVER - Silver Wheaton Corp. (TSX:SLW) says it earned US$44.6 million in its first quarter, nearly triple a year earlier amid higher silver production and prices.

The Vancouver-based silver miner, which doesn't own mines but rather invests in other companies' silver production, said Wednesday its earnings amounted to 13 cents per share compared to $15.1 million or six cents per share a year earlier. Revenue was $85.9 million, up significantly from $37.6 million in the comparable period of 2009.

Attributable silver equivalent production was 5.5 million ounces, 68 per cent higher than the first quarter of 2009, while sales increased 58 per cent to 5.0 million ounces.

Shares in Silver Wheaton, which reported after markets closed, added 18 cents to $21.38 in Wednesday trading on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3343398

[LeftCoaster]

Quadra Mining sees Q1 profits, revenue soar on strong copper prices, sales
By The Canadian Press

VANCOUVER - Quadra Mining Ltd. (TSX:QUA) has credited higher copper prices and increase sales volumes for sharply improved first-quarter results.

The Vancouver-based miner, which reports in U.S. dollars, said Q1 net earnings were US$55.6 million or 55 cents a diluted share, up from US$26.7 million or 40 cents in the prior-year period.

Revenue soared to US$192.9 million from US$106.3 million in the 2009 quarter.

"Our strong financial results for the first quarter of 2010 were a result of the improved copper price, which increased from $3.33 per pound on Dec. 31, 2009, to $3.56 at quarter end, as well as increasing sales volumes and revenues from the Carlota and Franke mines, which continue to ramp up production," president and CEO Paul Blythe said in a news release.

The Carlota mine is in Arizona, while the Franke mine is in Chile.

"The Robinson mine (in Nevada) had another strong quarter, generating approximately 60 per cent of our overall revenues and 75 per cent of our operating income," Blythe added.

Meanwhile, Blythe said the company continues to move forward on its proposed merger with FNX Mining (TSX:FNX) and the formation of the Strategic Joint Venture with State Grid International Development Ltd, where negotiations are advancing on a definitive agreement.

Shareholder votes on the proposals will be held at the company's annual meeting in Toronto on May 19.

Quadra Mining stock was up 58 cents or more than four per cent at $14.53 at mid-afternoon on the Toronto Stock Exchange on volume of more than 2.1 million shares.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3349911

[LeftCoaster]

HSBC Bank Canada earns $99 million in Q1, slightly higher than last year
By The Canadian Press

VANCOUVER - HSBC Bank Canada, Canada's biggest foreign-owned bank, reported a slight increase in net profits Thursday as the company booked sharply lower provisions for credit losses in an improving economy.

The Vancouver bank said it earned a net profit of $99 million or 17 cents a share for the three months ended March 31. That compared with earnings of $96 million or 17 cents a share in the same year-earlier period.

Total revenues in the quarter fell to $546 million from $627 million.

After payment of preferred share dividends, the bank said its net income applicable to common shareholders dropped to $84 million from $85 million.

In the fourth quarter of 2009, the bank earned $148 million, or 30 cents a share.

In a statement released early Thursday, HSBC Bank Canada said its good operating performance and lower loan impairment charges were masked by the impact of fair value accounting on its economic hedges, U.S.-dollar-denominated assets and liabilities and a portion of its own debt held at fair value.

The bank said this caused its first quarter results to book a non-cash charge of $112 million compared to credits of $35 million in the first quarter of 2009 and $8 million in the fourth quarter of 2009.

"Good operating performance for the first quarter of 2010 reflects increased revenues from core banking operations, positive results from our wealth management activities, stable costs and significant reductions in credit losses compared to prior periods," Lindsay Gordon, HSBC Bank Canada president and CEO, said in a statement.

Provision for credit losses was $63 million for the first quarter, down from $161 million in the first quarter of 2009, when the recession was still hitting the Canadian economy.

HSBC Bank Canada, a subsidiary of HSBC Holdings plc, has more than 260 offices, including 140 bank branches, and is the biggest international bank in Canada.

Its British-Hong Kong-based parent is one of the world's biggest banks, with operations in 88 countries and assets of US$2.4 trillion.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3345352

[LeftCoaster]

Tekmira Pharmaceuticals Q1 loss more than doubles as revenue slips
By The Canadian Press

VANCOUVER - Tekmira Pharmaceuticals Corp., a research company working on ways to treat human diseases by 'silencing' certain genes, says its first-quarter loss more than doubled as spending rose on two of its research programs.

The Vancouver-based company said Thursday its loss widened to $4.4 million or nine cents a share for the period ended March 31. That compared with a loss of $2.1 million or four cents a share in the same 2009 period.

Revenue from research and development partnerships eased to $2.5 million from $2.9 million.

Tekmira (TSX:TKM) says the higher loss was due to increased expenses for research into anti-cholesterol and cancer-fighting drugs.

During the recently-concluded period, Tekmira initiated a new partnership with Pfizer (NYSE:PFE), one of the world's biggest drugmakers.

It also expanded its ongoing deal with Takeda Pharmaceutical Company Ltd.

The Vancouver company also has deals with global healthcare company Roche and Bristol-Myers Squibb.

It has $18.5 million in cash at the end of March and said that coupled with committed revenue from its partners, it will be able to run its business until the second half of 2011 without the need for additional financing.

Shares of Tekmira rose 20 cents, or 20 per cent, to $1.20 on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3349861

[LeftCoaster]

Investment firm C.A. Bancorp enters pre-acquisition deal worth $40.1 million
By The Canadian Press

TORONTO - Shares in C.A. Bancorp Inc. jumped nearly eight per cent Thursday after the company announced it had found a white knight bidder that will pay more than $40 million for the Toronto-based merchant bank.

C.A. Bancorp (TSX:BKP) said a numbered affiliate of Alberta-based Century Services Inc. has offered to buy the company for $1.50 per share or $40.1 million.

The friendly transaction comes after the company launched a strategic review to find another bidder to rival an unsolicited offer by Maxam Opportunities Fund Ltd.

The fund is a unit of Maxam Capital Corp. of Vancouver.

The battle with Maxam ended in February when the self-described alternative asset manager backed away from its offer after an increased offer of $1.48 per share was rejected by C.A. Bancorp.

Bancorp wanted $1.60 per share.

C.A. Bancorp is a publicly traded merchant bank focused on investments in small- and mid-cap public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

The company's board said that if the Century offer is not successful, C.A. Bancorp would likely divest its assets and distribute the money to the company's securityholders.

Under terms of Thursday's agreement, the merchant bank has agreed not to solicit competing offers sand has agreed to pay a termination fee of $1.5 million in certain circumstances.

Tim Unwin, the chairman of the special committee of the company's board of directors said the board has been in a strategic review of the company for the past several months.

"The outcome of this process has yielded a choice for shareholders — a cash offer, which would provide immediate liquidity to shareholders, or alternatively a realization strategy under which the company's assets would be monetized and the proceeds distributed to shareholders on a timely basis," he said.

"We intend to put the choice to shareholders so that they can determine the preferred path for their company," he added.

The company said it expects Century will mail an offer and takeover circular in the next three weeks.

Century provides asset appraisals, specialized financial services and asset-to-cash recovery strategies to companies and their advisers.

Shares in C.A. Bancorp closed up 11 cents apiece to $1.49 Thursday on the Toronto Stock Exchange.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3352763

[LeftCoaster]

Taseko Mines reports first-quarter profit of $76.2 million on joint venture
By The Canadian Press

VANCOUVER - Taseko Mines Ltd. (TSX:TKO) said Thursday it earned $76.2 million in its latest quarter, boosted by gain related to its Gibraltar joint venture.

The copper and molybdenum miner said the profit amounted to 40 cents per diluted share for the quarter ended March 31 compared with a profit of $5 million or two cents per diluted share a year ago.

The results included a gain of $97.4 million related to the joint venture and an unrealized marked-to-market gain on its copper hedging program totalling $7.5 million.

Revenue totalled $75.5 million, up from $40.2 million.

Molybdenum production amounted to 194,000 pounds, up from 187,000 a year ago, while copper production totalled 23.2 million pounds, up from 19.9 million pounds.

"A combination of improved production performance at Gibraltar, increased copper pricing and the unwinding of our copper hedges has resulted in strong quarterly earnings," Taseko president and chief executive Russell Hallbauer said in a statement.

Taseko shares closed up 45 cents at $6.09 on the Toronto Stock Exchange on Thursday.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3353596

[LeftCoaster]

Ainsworth Lumber turns to profit in first quarter as revenue grows
By The Canadian Press

VANCOUVER - Ainsworth Lumber Co. Ltd. (TSX:ANS) turned to a profit in its latest quarter as revenue improved more than 15 per cent on higher oriented strand board prices.

The lumber company said Thursday it earned $15.4 million or 15 cents per share for the quarter ended March 31 compared with a loss of $54.2 million or 54 cents per share a year ago.

Sales totalled $81 million, up from $69.2 million.

"With the changes we made to the business in 2009, we entered 2010 lean, focused and well positioned to benefit from the rise in OSB prices during the first three months of the year," said Rick Huff, Ainsworth's president and chief executive.

"We are continuing to execute on the strategic plan we developed in 2009. This plan advances our ability to deliver innovative value-added products, increases the geographic diversity of our sales, positions the company well for future growth."

Ainsworth employs over 850 people and operates four manufacturing facilities across Canada.

Shares in the company, which reported its results after the close of markets, were down 12 cents at $4.23 on the Toronto Stock Exchange on Thursday.http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b3353749

[SFUVancouver]

Thanks for all of the business pieces. I enjoyed reading them. It appears as if numerous Vancouver-headquartered mining companies are having a good quarter.