The Vancouver Business Thread

[LeftCoaster]

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/mark...ntent=T3325199

[LeftCoaster]

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/mark...ntent=T3325752

[LeftCoaster]

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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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 (NYSEFE), 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/mark...ntent=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/mark...ntent=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/mark...ntent=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/mark...ntent=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.