Power Corporation of Canada T.POW

Alternate Symbol(s): PWCDF | T.POW.PR.A | PWCCF | T.POW.PR.B | T.POW.PR.C | T.POW.PR.D | T.POW.PR.E | T.POW.PR.G

Financial Services Insurance - Diversified

Power Corporation of Canada is a Canada-based international management and holding company. The Company is focused on providing financial services in North America, Europe, and Asia. Its core holdings include insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. It operates through three segments: Lifeco, IGM Financial and GBL. Lifeco is a financial service holding company with interests in life insurance, health insurance, retirement and investment management services, asset management and reinsurance businesses primarily in Canada, the United States and Europe. IGM Financial is a wealth and asset management company supporting financial advisors and the clients they serve in Canada, and institutional investors through North America, Europe, and Asia. GBL is a Belgian holding company, which is focused on long-term value creation with a diversified quality portfolio of listed and private investments.

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Power Corporation of Canada > RBC

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Post by retiredcfon Jan 16, 2024 9:11am

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Post# 35828617

RBC

January 15, 2024

Capital Power Corp

Quick Take: Enters into an agreement with OPG to assess the deployment of SMRs in Alberta

TSX: CPX | CAD 36.17 | Sector Perform | Price Target CAD 45.00

Sentiment: Neutral

Our view

• Given the early-stage of this assessment and with the likelihood that there will be limited near-term capital investments during this assessment stage, we do not expect this announcement to have a material impact on Capital Power's share price.

• Directionally, the themes associated with this announcement broadly align with those discussed in our RBC ImagineTM report, titled "Climate of change for nuclear energy". In this report, we highlighted that nuclear energy generation capacity is well- positioned to grow in North America and Europe over the long term, supporting nations' energy transition objectives by being a source of reliable and non-emitting baseload power for decades as well as being an industry that nations can develop to deliver stronger economic growth and relationships. We also noted that SMRs (small modular reactors) can offer real solutions (particularly given the downside risks associated with large-scale nuclear new builds) and that continued political and institutional support are necessary to maintain the technology's momentum. Please click here for more of our thoughts of the way forward for nuclear energy.

Details

• Capital Power has entered into an agreement with Ontario Power Generation (OPG) to jointly assess the development and deployment of grid-scale SMRs in Alberta.

Through the agreement, the two companies will examine the feasibility of developing SMRs in Alberta, including possible ownership and operating structures.
Capital Power and OPG will complete the feasibility assessment within two years, while continuing to work on the next stages of SMR development.