Analyst Articles

Vermilion Energy announced the acquisition of privately-held Westbrick Energy for $1.075 billion. The deal includes 50,000 barrels of oil equivalent per day (boe/d) of production, 1.1 million acres of land, and four gas plants. Vermilion expects the acquisition to boost its 2025 production to 126,000–133,000 boe/d while strengthening its position as the fifth largest Deep Basin producer. This aligns with the company’s focus on natural gas as a transition fuel and balancing its North American and European portfolios. The company anticipates significant cash flow generation and long-term operational synergies from these assets. [more]

Nordstrom is set to go private in a $6.25 billion deal led by the Nordstrom family and Mexican retail giant Liverpool. Shareholders will receive $24.25 per share, a 42% premium to pre-deal speculation. The move aligns with industry trends, as department stores adapt to online competition and shifting shopping habits. Going private could provide Nordstrom greater flexibility, supported by Liverpool’s expertise in e-commerce and logistics. The deal, expected to close in the first half of 2025, requires shareholder and regulatory approval. Nordstrom will retain its headquarters, management team, and iconic brand identity. [more]

After Newmont acquired Newcrest, Newmont is reshaping its portfolio, selling non-core assets at significantly higher valuations. The 2024 divestiture program has raised $3.9 billion so far, exceeding its $2 billion target. Highlights include $909 per ounce of Reserves it received for Akyem from Zijin and $567 for Musselwhite from Orla, compared to $198 per ounce paid for the Newcrest’s Reserves. By focusing on Tier 1 gold and copper assets, Newmont is positioning itself for sustained growth and enhanced shareholder returns. [more]

Silver Bullet Mines (SBMI), a Canadian silver and copper exploration company, reported significant progress at its Super Champ and Washington properties. At Super Champ, assays revealed high-grade silver and gold potential, including historic workings with samples up to 1,093.2 oz/t silver. The Washington Mine development targets historic high-grade zones with plans to resume mining from the 150-foot level to the surface. These developments align with SBMI’s strategy to process third-party material at its Globe, Arizona mill, generating revenue while advancing its core assets. Recent updates support eResearch’s revised one-year target price of $0.20 and two-year target price of $0.35. [more]

Groupe Dynamite (TSX: GRGD) debuted on the public market with a secondary offering, raising $300 million for existing shareholders. The IPO valued the retailer at $2.7 billion, with an EV/Revenue ratio of 3.0x, above the average for North American retail comparables. Groupe Dynamite plans to use its free cash flow to support U.S. expansion and entry into the U.K. market. With revenue reaching $888.4 million in the last 12 months and a three-year CAGR of 14.9%, the company is positioned for growth in a competitive fashion landscape. Investors remain focused on its ability to sustain these trends. [more]

Paladin Energy’s proposed $1.14 billion acquisition of Fission Uranium faces further delays as Canada’s national security review under the Investment Canada Act continues. Originally expected to close in September, the deal has been extended until at least December 30, 2024. The review, focused on the Patterson Lake South (PLS) uranium project, highlights concerns over foreign control of critical resources. Despite a court ruling in Paladin’s favor, government clearance remains uncertain, posing a significant hurdle. If approved, the deal would position Paladin as a major uranium supplier with assets in Canada, Namibia, and Australia, meeting the growing demand for clean energy. [more]

We have written a 16-page Update Report on DATA Communications Management (DCM) after it released its Q3/2024 financials. DCM is a Canadian-based communications, DAM, marketing, MarTech, and social media analytics solutions provider. Revenue increased 14.5% YTD driven by the Moore Canada Corporation (MCC) acquisition. Despite a 11.4% decline in quarterly revenue due to reduced client spending and strategic account exits, DCM continued to focus on operational efficiencies and cost reductions. Adjusted EBITDA rose 6.6% Y/Y to $12.6 million, supported by MCC synergies and restructuring efforts. The company launched ASMBL and acquired Zavy Limited to expand tech-enabled solutions. DCM remains optimistic about revenue recovery and targets an improved EBITDA margin of over 14% in the coming quarters. [more]

Wonder Group, a delivery-focused food hall operator, has agreed to acquire Grubhub from Just Eat Takeaway.com for $650 million. The deal, comprising $150 million in cash and $500 million in senior notes, is expected to close in Q1/2025. Wonder plans to integrate Grubhub’s platform, which connects 375,000 merchants across 4,000 U.S. cities, to enhance its super app for meal ordering. This acquisition comes as Wonder raises $250 million to support its growth and follows its 2023 purchase of Blue Apron. Grubhub continues to face market challenges, with declining share and ongoing profitability concerns. [more]