Tag - Mining

The start of this gold bull market began in 1999. As Jim Rogers, author of Hot Commodities writes, "The shortest bull market for commodities lasted 15 years, the longest 23 years, so if history is any guide, they've got a long way to go. This is not a bubble."

The uptick in gold is barely 13 years old. So we should see at least two more years of this party - maybe more - with a whole lot of investors making a boatload of cash. And you can be one of those investors.

The bottom line is that the problems plaguing the United States - the same ones that propel the price of gold - are far from over. That's good news for investors in the yellow metal.

The growth strategy of Layne Christensen Company (Nasdaq:LAYN) is all wet, and that may be a good thing for investors in this century-old Kansas-based drilling and mining company.

Wet as in water, which has seen its demand rising in tandem with that for fossil fuels. Management reminded investors in the fiscal 2008 annual report that “Layne Christensen continues to be anchored by its water infrastructure division.”

Layne Christensen operates in four segments: mineral exploration, energy, water resources and a smaller geo construction operation — the latter helps give projects a solid base. Should Layne post revenue growth at the 20% rate of fiscal 2008, it could be a billion-dollar company next year. Last September, Layne ranked 78th among Fortune magazine’s fastest-growing companies.

For the three months ended April 30, Layne Christensen’s revenue grew 21.3% to $244.5 million, with earnings per share increasing $0.03 to $0.55, in line with expectations. While its three primary business segments had double-digit revenue growth, mineral exploration was the biggest contributor to net income in fiscal 2009’s first quarter.

But water is where it’s at for Layne Christensen, and the prospect of where that will take the stock has whet the appetite of analysts — at least a little. Four of six analysts surveyed by Thomson Reuters rate Layne a “hold,” with the others calling it a “buy” or “strong buy.” They’re apparently thirsting for more from water, which Layne Christensen finds, pipes and treats — both water and wastewater.

Shares of Layne Christensen hit a 52-week high of $59.19 on Oct. 26, but slid as low as $32.08 on March 17, following a December reality check. From Dec. 4, when shares hit an intraday high of $55.28, to its low point, Layne dropped 42%. The . . .

China's warp-speed industrialization and huge manufacturing machine have created a voracious appetite for metals and mining commodities. The almost insatiable demand has driven the country to hunt for natural resources in almost every corner of the globe. China has a dominant presence in several resource-rich African countries, and it has also managed to secure access rights to significant reserves of mineral resources in Latin America and Southeast Asia. Chinese officials have also expanded bilateral scientific and research cooperation in the field of mining with countries such as Iran and Russia. And Chinese companies are eyeing investment opportunities in large mining concerns in Australia, Brazil and India.
 
But the resource-hungry nation is scouring not only the far reaches of the planet for mineral wealth. It is looking within its borders. As a world leader in reserves and production of several metals and minerals (it is the world’s largest producer of coal, gold, aluminum and copper), China has thus far only scratched its mineral surface. A study by London-based Business Monitor International suggests that increased exploration and mining of its substantial identified resources could potentially make up for the shortfall and provide China with resource security. The Ministry of Land and Resources is doing its part to make China's mining industry more competitive, and the industry is growing by leaps and bounds as metals and mining interests are geared up to tap the country's vast natural wealth.
 
One small player hoping to cash in on China's mining boom is China Shen Zhou Mining & Resources Inc. (AMEX:SHZ), an outfit engaged in the exploration, mining, processing and distribution of fluorite ore, copper, zinc, lead and other mineral products. The company operates mines in both the Inner Mongolia autonomous region and Xingjiang Uygur autonomous region, areas well-known for their high-grade reserves of copper, zinc, lead and fluorite. Its refined fluorite (ores and powder) is sold mainly to chemical companies that use the products in everything from flux — which is important in steel and aluminum production — to Hydrofluoric acid, a substance used, among other things, in the manufacture of pharmaceuticals, Teflon and . . .

Rising fuel costs have grabbed the headlines over the past few years, with consumers feeling the pinch at the gas pump and in heating their homes. Much of the attention has focused on crude oil and natural gas, keeping coal buried deep in the news coverage.

Yet coal prices are rising, too, mostly on increased demand from Europe and Asia, and production shortages overseas. That’s good news for U.S. coal producers of all sizes, including James River Coal Co. (Nasdaq:JRCC). The stock closed Monday at $26, then following a release Tuesday morning that showed a steeper-than-expected first-quarter loss, the stock actually gained 10.31%, closing up $2.68 at $28.68.

That’s not some sort of a weird reverse reaction. Most of those gains followed a midmorning conference call, on which James River Coal’s chairman and chief executive, Peter Socha, offered his take on rising prices, and how his company is likely to benefit.

Coal is hot, with the Dow Jones U.S. Coal Index up 75% in the past year. Ahead of its Q1 report, James River Coal on Monday hit an intraday 52-week high of $27.19 — roughly eight times the 52-week low of $3.56 hit Aug. 16.

Investors have to dig deep into James River Coal Co. for that diamond in the rough. Analysts following the Richmond, Va., mining company offer a favorable outlook, with three calling it a “buy” and two rating it “hold,” according to Thomson Financial.

Founded in 1988 through the combination of smaller operations, with others added over the years, James River Coal overextended itself and entered into bankruptcy protection in 2003. A new James River Coal emerged from the tangles . . .

Investors are often blinded by growth, forgetting that intrinsic value is determined by the present value of future cash flows. Some investors consider EBIDTA a reasonable proxy for cash flow, others consider cash flow from operations, and some just use earnings. But why use a proxy, when you can use dividends? After all, your cash flow, not the company's, is what matters.

We think we've found a reliable dividend source in Great Northern Iron Ore Properties (NYSE:GNI), a non-voting trust that owns interests in both mineral and non-mineral lands on the Mesabi Iron Range in northeastern Minnesota.

Great Northern pays virtually all its net income as dividends, a requisite practice among publicly traded trusts. The income is derived form royalties on taconite — an iron-bearing, high-silica flint-like rock that's ground into a fine powder so that the iron ore can be separated by strong magnets. 

Great Northern's royalty income depends on the number of tons of taconite shipped from its properties by its lessees, which include some of the sector's biggest movers and shakers: United States Steel Corporation (NYSE:X), Arcelor-Mittal (NYSE:MT), Cleveland-Cliffs Inc. (NYSE:CLF) and Essar Steel Holdings.

Great Northern is about as pure as a commodity play gets in the steel sector. The company undertakes no value-adding activities and is wholly dependent on the fortunes of its steel-producing customers and their demand for iron ore.

And those fortunes have been in a secular upswing. According to the International Iron and Steel Institute (IISI), world crude steel output reached 1,343.5 million metric tons in 2007, a 7.5% increase over 2006, marking the fifth consecutive . . .

While every cloud may have a silver lining, every market slump may also have its lining of silver; as of late, it has come in the form of First Majestic Silver Corp. (TSE: FR.TO), a junior silver miner that has been unearthing profits for investors.

This Vancouver, B.C.-based company has a slew of positive factors on its side, including growing revenue and production and falling operating costs, a stellar management crew, demand for silver that analysts predict will outperform gold in 2008, and current and future mines nested in the fertile underground of Mexico.

First Majestic is clearly advancing in its goal of becoming a senior silver producer in Mexico through the development of existing assets and the acquisition of others’ assets. The firm presently owns and operates three silver mines south of the border: La Parrilla, San Martin and La Encantada.

The Mexico mines are proving to be priceless. The United States’ neighbors to the south provide a desirable mining environment with a stable government, favorable mining laws, reasonably developed infrastructure and low labor expenses.

For the fourth quarter ended Dec. 31, 2007, production increased to a record 1 million equivalent ounces of silver representing a 7% increase over the prior quarter production and an increase of 76% over the same quarter in the prior year.

Total silver production from the three Mexican mines in 2007 increased by 176% to 3.6 million ounces from 1.3 million in the previous year. Keith Neumeyer, the company’s president & CEO, attributes the triple-digit growth to vast improvements made at the silver mines and a beefing-up of management, and expects a target of 5.5 million ounces of silver production in 2008.

Gold has been the most intoxicating of commodities dating back to antiquity: it has started wars, inspired exploration, exulted great love affairs and toppled regimes. It’s most revered application, though, has been as a store of value and exchange medium, especially during tumultuous times.  In modernity, thanks to modern portfolio theory, that application has morphed into portfolio diversifier: gold and most stocks tend to be lowly correlated, so gold reduces a portfolio's volatility. 

And, of course, gold is valued as a stand-alone investment, though one difficult to value.  Any cash-generating asset, like a stock or a bond, is worth its expected future cash flows discounted to the present, but gold doesn't generate cash. On the contrary, gold is a cash consumer because of storage, insurance and opportunity costs; therefore, investors might consider a more liquid form of ownership, such as a gold-mining stock. 

On that front, we like Vancouver-based Great Basin Gold Ltd. (AMEX: GBN), like most gold mining stocks, performs a dual role for investors, first as a gold proxy and second as equity investment.

Great Basin specializes in acquiring, exploring and developing gold and silver deposits, focusing on two primary projects: the Hollister Project on the Carlin Trend in Nevada, where an underground exploration and development program is underway on a portion of the property called the Hollister Development Block, and the Burnstone Gold Project in the Witwatersrand Basin in South Africa.

Great Basin is considered a “junior” exploration company (at least in industry patois) because it holds advanced development projects, but doesn't actually produce any substantive gold at the moment.

Flotek Industries, Inc. (NYSE: FTK) shares are plummeting after the Houston-based company lowered its fiscal 2007 earnings guidance to a range of $0.88 to $0.92 per share, from previous guidance of earning $1 per share. Analysts, on average, expect Flotek to earn $1.02 per share.

“The growth fundamentals of our core businesses remain sound, and the pace of North American oilfield service activity seems to be strengthening in January,” CEO Jerry Dumas said in a statement. “We believe the business line additions of the last several years will continue contributing to growth in 2008 and beyond as these businesses are integrated and ramp-up matures.”

The firm, a supplier of drilling and other services to the energy and mining industries, said general and administrative expenses are expected to be about 30% higher in the fourth quarter of 2007 than in the third quarter of 2007.

In midday trading, FTK shares are plunging 26.83%, or $6.83, at $18.63. Over the last 52 weeks, shares have ranged from $17.55 to $31.25.

Shares of James River Coal Company (Nasdaq: JRCC) are treading higher today after the miner and seller of bituminous, steam and industrial-grade coal said it will ship coal in 2008 at a higher-than-anticipated price.

Specifically, the small cap said it will ship CAPP coal in 2008 at an average price of $54.76, above its previously agreed upon price of $47.14 in the third quarter. James River Coal said roughly 22% of expected 2008 CAPP shipments remain open to new pricing.

The company said in a press release that its 2008 guidance “reflects the recent strength in the coal markets.”

Neither company officials, nor analysts could be reached for comment.

Shares of James River Coal (JRCC) jumped 15.11%, or $0.81, to $6.17 at 12:52 p.m. ET. Shares of James River Coal have been trading in the range of $3.56 to $15.45 for the past 52 weeks.

Shares of General Moly (AMEX: GMO) are gaining after the molybdenum mining company said after Monday’s close that it formed a strategic relationship with ArcelorMittal S.A., the world's largest steel producer.

Under the terms of the agreement, ArcelorMittal will purchase approximately 8.239 million, or 12.6% of General Moly’s outstanding shares at $8.50 per share. The arrangement will generate approximately $70 million in proceeds and will be used for the development of General Moly's Mt. Hope molybdenum project, according to General Moly. 

Specifically, the agreement would allow for the supply of approximately 6.5 million pounds per year of molybdenum for five years, beginning once Mt. Hope commences production.

General Moly also stipulated that its relationship with ArcelorMittal is a non-exclusive arrangement and will continue to scan for other strategic relationship opportunities.

Shares of General Moly (GMO) jumped 11.11%, or $0.94, to $9.40 in pre-market trading. Moly Shares of General Moly have been trading in the range of $ for the past 52 weeks.

The sector with the Midas touch these days is gold, the price of which on Tuesday climbed to a 28-year peak of around $825 an ounce for December delivery on the New York Mercantile Exchange.

Gold prices are cyclical and typically rise during periods when the dollar is weak, inflation fears are high and geopolitical tensions are escalating.

Gold’s ascent in 2007 reflects the current economic and political climate, characterized by a declining U.S. dollar, heightened Iran and Iraq tensions, skyrocketing crude oil prices and financial institutions eager to increase their gold stockpiles on any price weakness.

With gold prices nearing record highs, junior gold mining companies such as Great Basin Gold Ltd. (AMEX: GBN) and Aurizon Mines, Ltd. (AMEX: AZK) are becoming increasingly attractive. Both are Canadian mining companies that trade on the Toronto and American Stock Exchanges. Their operating results are reported in Canadian rather than U.S. dollars. 

Great Basin Gold has mining assets in two of the world’s richest gold regions—the  Witwatersrand Basin in South Africa and the Carlin Trend in Nevada. The company’s Hollister property in Nevada has an indicated resource of two million gold equivalent ounces, with production expected to commence in 2008 at 150,000 ounces per year and continue for six years. Gold resources associated with the company’s Burnstone mine in South Africa are estimated to exceed seven million ounces. Feasibility studies indicate that the Burnstone mine is capable of producing 254,000 ounces of gold annually for 19 years. Production from the Burnstone mine is slated to begin in 2009.

While not currently generating revenues, Great Basin Gold has a strong balance sheet, with cash and equivalents of approximately $100 million and no debt to support its development activities. The company recorded a net loss of $17.7 million, or $0.13 per share, in the first six months of 2007, up from $1.1 million, or $0.01 per share, in the same period last year, as a result of increased spending on exploration activities.

Shares of Uranium Resources Inc. (Nasdaq: URRE) are higher following news before the opening that the company engaged in developing and mining uranium properties has purchased a similar privately held firm.

Lewisville, Texas-based Uranium Resources, which owns uranium properties in Texas and New Mexico, has agreed to buy a uranium mining company and a mill license from BHP Billiton Ltd. (NYSE: BHP) for about $126.5 million in cash. The purchase price includes $110 million for Rio Algom Mining LLC, which has a property with 20 million pounds of U308 uranium ore in New Mexico, and $16.5 million paid to regulators for a license to build a conventional uranium mill.

“The purchase of Rio Algom provides one of the key assets we need to achieve our strategic goal to produce 10 million pounds of U3O8 per year by 2014,” said president and CEO Dave Clark in a statement. He added that production from the new mill could begin within four to five years.

The deal is expected to close before June 2008.

At 11:18 a.m. ET, shares of Uranium Resources (URRE) had advanced $0.84, or 9%, to $9.87. The 52-week high of $12.00 was reached on June 4. The 52-week low of $2.25 was set on Oct. 12.

Idaho General Mines Inc. (AMEX:GMO) reported today that it has completed a study of its Mt. Hope molybdenum property and has found that the project has a net present value (NPV) of $1.4 billion.

After conducting due diligence the company also determined that the project, which the company calls its “Mt. Hope Bankable Feasibility Study,” is expected to produce 38.3 million pounds annually over the first five years with average grades of 0.1% molybdenum.

The company also anticipates that the property will have a 44-year mine life including 32 years of mining operations and 12 years of low-grade production.

The project is estimated to have direct operating costs of $4.42 per pound over the first five years.

Idaho General Mines participates in the exploration and development of molybdenum, silver, gold, base metals, and other specialty metals. The company has two molybdenum properties; its Mount Hope Project, a primary molybdenum deposit in Eureka County, Nevada, and Hall-Tonopah, a molybdenum project in Nye County, Nevada.

Shares of Idaho General Mines are up 11.32%, or $0.67, to $6.59 in mid-day trading.

In today’s column, four noted advisors – Eric Roseman, Tom Bishop, Curtis Hesler and Nick Jones -- look at small-cap mining operations, covering gold, silver and copper. With the caveat that junior miners are dependent on the success of their developing exploration activities and, as such, offer both high risk and high reward, we offer these four favorite mining plays.

“The stage is being set for the next big rally in gold stocks,” says resources expert Eric Roseman in his Commodity Trend Alert. “I know this current market is depressing, but there is light at the end of this tunnel – bright, screaming radiant light.”

Roseman predicts that over the next several weeks, “one of the most incredible rallies will take hold in the mining sector, as the U.S. dollar comes under renewed downside pressure amid lower short-term interest rates. In hindsight, the credit crisis in the mortgage-backed securities market will be a ‘gift’ for commodity investors.”

As to specific stocks, Roseman has added a new mining buy to his portfolio: Northgate Minerals Corp. (ASE: NXG), which has a market cap of $686 million. He explains, “The stock is trading just above its low and ripe for the plucking. Northgate is a rocket, (it) mines throughout the Americas (gold and copper) and has been on my radar for months. Now is the time to kick into action and buy.”

Copper catches the attention of Tom Bishop, who notes, “Taseko Mines Ltd. (ASE: TGB), with a market cap of $619 million, is going a little bit nuts, and has doubled since I picked this as my ‘stock of the year’ in January.”

The editor of BI Research notes, “I have been asked, 'Is this takeover speculation?'  Well, it is possible in this environment of cash rich mining companies looking to add to reserves the easy way.”

Technology is a sector often overlooked in the Canadian small-cap market, which is precisely why small-cap specialists Martin Dufresne and Patrick Potvin, portfolio managers at Montreal-based Fiera YMG Capital Inc., have been steadily boosting their holdings.
 
"We are finding select stocks that trade at modest valuations relative to the companies' growth prospects," Dufresne said after finishing a recent evaluation of the sector based on what he described as “industry reports by sell side analysts, meetings with managements and internal research.”

Generally, said Potvin, "our strategy is to sell off low growth or disappointing companies and put the proceeds into those companies that we consider have a more promising growth profile."

As a result, according to Potvin, the portfolio managers say they have been reducing holdings of companies that have become large cap and parlaying the proceeds into smaller caps that "generally tend to have higher growth prospects."
 
Fiera YMG has roughly C$21-billion under management, of which about C$6-billion is in Canadian equities. Dufresne and Potvin manage a number of small-cap Canadian portfolios including the Millennia III North American Small Company fund. This is part of the segregated family of funds managed by Fiera YMG for Desjardins Financial Security.

The Millennia III North American Small Company fund has almost 50% in the U.S. equity market via futures contracts linked to the Russell 2000 Index (NYSE: IWM). The rest is invested in Canadian small caps and managed by Dufresne and Potvin.

Few would deny that the pro-green, anti-global warming movement has staying power. Unlike previous upsurges in be-kind-to-the-planet pushes, this time around, it does look as if things are different.

What hasn’t changed for investors, however, is that it’s still tough to make black-and-white decisions about which companies will be able to turn the green movement into gold. Particularly in the smaller-cap space, risks often remain high. Some companies have interesting but unproven technology, while others make great products that lack the necessary sales to reduce costs. And those in the green power space often face years of navigation through – and negotiating with – concerned regulators and slow-moving utilities.

This all goes a long way to explaining why analysts have taken a shine to SunOpta, Inc. (Nasdaq: STKL, TSX: SOY), recently trading at $11.91. Not only does SunOpta have proven revenues for its products, it operates in two distinct “green” sectors. Add in its share of a third business in an entirely unrelated industry, and you have a company that offers reduced risk thanks to its diversification and proven demand, yet retains some of the potential upside that comes with piggy-backing on not one but two emerging long-term trends.

The mining sector in general entails significant risk. Needless to say, low-priced, small-cap mining firms should be viewed as highly speculative. For those comfortable with these risks, a trio of advisors sees upside potential in three mining firms – two focused on gold, and one on copper.

“Caveat emptor,” emphasizes Ivan Martchev in discussing DRDGold Ltd. (Nasdaq: DROOY). In his Vital Resource Investor, he explains, “DRDGold, previously called Durban Rooodeport Deep, is a very high risk special situation. DRD may be South Africa’s fourth-largest gold miner, but the share price hit $0.54 March 14, a level it last saw in late 2000 when the precious metals boom started.”

He notes that the company is a “serial diluter,” pointing out that the company had 105.4 million shares back in 2000 and currently has 370.3 million shares outstanding. As a result, he cautions, “Its results are not an apples-to-oranges comparison.”

“Can DRD make it?” he asks. Says Martchev, “My answer has been yes, even though the brilliant managerial talent DRD possesses is starting to wear me out. Indeed, management needs to come to its senses, which is still a work in progress.”

Martchev emphasizes that this is a highly speculative idea, particular because the stock “doesn’t have an obvious catalyst, other than the fact that a sharp rally in gold can make miracles happen.”

Looking ahead, Martchev states, “If the gold price heads toward $800, the fire under DRD’s shares will be difficult to put out given the high-cost nature of production. Because I’m bullish on the gold price and precious metals in general, I think that this remains a great speculation.”

The profit outlook has rarely been better for gold mining companies. Gold prices have risen from around $265 per ounce in 2001 to a peak of $725 in May 2006, a 25-year high, before retreating to a 2007 level of around $670 per ounce. Most industry analysts forecast continued increases in gold prices, fueled by demand for this metal in investment and technology applications, and some experts predict $1,000 per ounce gold prices by 2010.

Most of us associate gold with rings and other jewelry, and, indeed, jewelry applications are gold’s primary use, accounting for approximately two-thirds of annual gold consumption. The demand for gold in jewelry manufacturing applications is expected to remain firm because of rising jewelry sales in India and China.

Gold is also used in aerospace, electronics and healthcare applications. Demand from these sectors reached record levels of 458 tons in 2006, primarily on the strength of demand from electronics manufacturers. Gold is used in many types of electronic circuitry and is also increasingly employed in nanotechnology applications.

Gold and the U.S. dollar hold a dominant position in international finance. During periods of political and/or economic uncertainty gold prices generally rise. With the U.S. government reporting large trade imbalances and budget deficits, many foreign investors have begun purchasing gold as a hedge against long-term dollar depreciation. Investments in gold bars and coins grew 7% in tonnage terms and 45% in dollar terms in 2006. Gold’s value also rises when other investment classes such as stocks and bonds become especially volatile. Central banks and the International Monetary Fund influence world gold prices through their purchase and sale activities. While the U.S. Federal Reserve Bank holds 16% of its assets in gold, China’s central bank holds only about 1% of its assets in gold and is likely to increase gold stockpiles in the future. Gold acquisitions by central banks are expected to support rising gold prices.

Usually investing in mining companies means having to choose between a junior company that is working to get a mine up and running, and a more stable, mature miner that is already in production.

With the former, you get more risk, at least until the final permit is received, the mining plan finalized, equipment in place, and ore being processed. Of course, that can often mean greater leverage to metal prices. With the latter, you know what you’re getting in terms of output from the mine, but that typically limits any blue-sky financial upside for investors.

But then there’s Northern Orion Resources Inc. (TSX: NNO, AMEX: NTO), which allows you to put money into both types of play with one stock. The Vancouver-based miner has a minority position in a major gold and copper mine in Argentina that, after a decade of production, is only half-way through its estimated lifespan. And investors also get exposure to the nearby—and soon-to-be-developed—Agua Rica project, which contains copper, gold, and molybdenum.

The stock is now recovering from giving up some 12% in early May due to earnings for the first quarter in 2007 coming in under estimates. But given that the cause was due to temporary setbacks - lower-than-expected recovery, shipment delays, and a higher-than-expected royalty payment - the stock at a recent price of C$5.67 looks attractive, especially once you factor in that the miner is a possible take-over target.

The Royal Canadian Mint recently unveiled what will likely become the largest symbol for Canada’s vast resource wealth.
 
In April, the Ottawa-based mint took the drapes off the world's first 100-kilogram (220 pounds or 3,215 troy ounces) gold coin with a face value of C$1 million. And the pizza-sized coins are now on sale for between C$2 million and C$3 million.
 
The timing was a bit ironic, however.
 
Gold prices have been slumping this year after a huge 23% increase in 2006 on top of an 18% increase in 2005. After peaking at about US$730 in mid-May 2006, gold is currently trading at about US$665. Part of the reason is the amount of gold suddenly hitting the markets as central banks such as the European Central Bank, the Bank of Spain and the Bank of France unloaded large volumes. “There have been unusually large central bank sales over the past couple of weeks and that’s weighed on the market,” said Bill O’Neill, co-founder of the commodity consultancy, LOGIC Advisors.
 
The Royal Canadian Mint’s monster gold coin debuts at a time when Canada, once one of the world’s largest gold producers, has seen its production drop in the last decade by almost a third to about 140,000 kilograms a year, mostly from about 330 so-called hard-rock underground mines. And few analysts believe that there is the likelihood of any major discoveries in Canada.
 
But that does not stop the gold bugs.
 
For publicly traded companies in Canada, gold exploration and production are still a big deal. Dominated by major producers like Placer Dome Inc., Barrick Gold Corp. (NYSE: ABX) and TVX Newmont Americas (previously known as TVX Normandy Americas), gold companies on the Toronto Stock Exchange (TSX) raised about US$1.5 billion in 2005. Combined, their 3 billion shares are worth about C$58 billion.