Buzz on the Bullboards: The top stocks in energy, mining and EVs

As investors navigate through another week of market activity, attention remains divided between Toronto and New York, with corporate earnings and a significant U.S. Federal Reserve monetary policy decision dominating discussions.

In Toronto, the TSX experienced notable movements, propelled in part by gains in the energy sector. Sintana Energy Inc. (TSXV:SEI, Forum) emerged as a focal point, announcing value-accretive testing results from the Mopane-1X well in Namibia’s Orange Basin. The well’s test flows surged to approximately 14,000 barrels of oil equivalent per day (boed), hinting at the potential for a significant commercial discovery.

Supported by reservoir log measures showcasing promising porosities and permeabilities, Sintana’s exploration efforts in the Mopane complex underscore the region’s growing prominence in the oil and gas industry.

The blocks are governed by Petroleum Exploration License (PEL) 83, which is operated by a subsidiary of Portugal’s Galp Energia. Sintana maintains an indirect 49 per cent interest in Custos Energy, a 10 per cent working interest owner in PEL 83. Namcor, the National Petroleum Company of Namibia, also maintains a 10 per cent working interest.

In the mining sector, Ivanhoe Mines Ltd. (TSX:IVN, Forum) unveiled its financial results for Q1 2024. Despite a dip in normalized profit compared with the previous year, Ivanhoe Mines demonstrated resilience amid market challenges. With a diversified portfolio of projects across Southern Africa, including the Kamoa-Kakula Copper Complex and the Platreef project, Ivanhoe remains a key player in the global mining landscape. The company’s performance underscores its commitment to sustainable resource development and operational excellence.

Located in the Democratic Republic of Congo (DRC), the Kamoa-Kakula Copper Complex is expected to be the third largest copper mine globally; the phased development of the Platreef palladium, nickel, platinum, rhodium, copper and gold project in South Africa, which is the world’s largest undeveloped precious metals project and one of the largest nickel sulphide deposits; the restart of the historic Kipushi zinc-copper-lead-germanium mine in the DRC, which is expected to be one of the largest zinc mines globally; and exploration on Ivanhoe’s 2,650-square-kilometre Western Foreland exploration project for new sedimentary copper discoveries, as well as expanding and further defining the high-grade Makoko, Kiala, and Kitoko copper discoveries that are adjacent to Kamoa-Kakula.

Ivanhoe Mines’ normalized profit for Q1 2024 was US$70 million, compared with a normalized profit of US$113 million for Q1 2023. Including a US$139 million non-cash loss on the US$575 million convertible bond fair valuation, Ivanhoe Mines recorded a loss of US$69 million for Q1 2024, compared with a profit of US$82 million for Q1 2023. The non-cash loss on the convertible bond resulted from a 26 per cent appreciation in the Ivanhoe Mines share price to C$16.16 during the quarter.

The company’s adjusted EBITDA was US$126 million for Q1 2024, compared with US$172 million for the same period in 2023, which includes an attributable share of earnings before interest, taxes, depreciation and amortization (EBITDA) from Kamoa-Kakula.

During Q1 2024, Kamoa-Kakula sold 85,155 tonnes of payable copper, recognizing revenue of US$618 million, an operating profit of US$286 million and quarterly EBITDA of US$365 million. The realized copper price for the quarter was US$3.82/lb. The current copper price as of April 29, 2024, is more than US$10,000/t (US$4.54/lb.).

Kamoa-Kakula’s cost of sales per pound of payable copper sold was US$1.50/lb. for Q1 2024 compared with US$1.50/lb. and US$1.25/lb. in Q4 2023 and Q1 2023, respectively. Cash cost per pound of payable copper produced in Q1 2024 totalled $1.57/lb., towards the lower end of the guidance range of US$1.50 to 1.70/lb. And compared with US$1.53/lb. and US$1.42/lb. in Q4 2023 and Q1 2023, respectively.

Shifting to the industrials sector, Exro Technologies Inc. (TSX:EXRO, Forum) caught a lot of attention for its innovative contributions to the automotive industry. Honoured as an awardee in the 2024 Automotive News PACEpilot Innovation to Watch competition, Exro’s Coil Driver Electric Vehicle (EV) Traction Inverter stands poised to revolutionize e-mobility. In the face of mounting challenges surrounding clean energy transitions and performance demands, Exro’s technology offers a solution, enhancing EV performance while optimizing operational efficiencies. This recognition reaffirms Exro’s position as a leader in clean technology and underscores the transformative potential of its innovations.

The e-mobility landscape faces significant challenges in transitioning to clean energy. From aggressive government targets and regulations to a challenging supply chain environment and the pressure to deliver top-performing vehicles, success for automakers entails overcoming barriers. As a new brain for EVs, Coil Driver tackles these challenges head-on, enhancing EV performance at high speed, while providing better starting torque and climbing power at low speed. The result is improved operational efficiencies and extended range.

L040 inverter specifications:

Amidst the fluctuations of the market, opportunities abound for vigilant investors. By remaining engaged and adaptable, investors can navigate the ever-changing landscape of finance with confidence, ensuring their portfolios remain aligned with their investment goals and objectives.

For previous editions of Buzz on the Bullboards: click here.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.