The TSX experienced a roller-coaster week, starting with notable losses but ending with a robust rebound, leading to significant gains. This positive shift has supported investor confidence, proving that it is important to stay updated with recent developments. Let’s take a deeper look at the latest news from three popular (for better or worse) TSX stocks: Victoria Gold Corp. (TSX:VGCX, Forum), Baytex Energy (TSX:BTE, Forum) and PyroGenesis Canada Inc. (TSX:PYR, Forum).
Victoria Gold Corp.
The Victoria Gold saga in Yukon Territory continues as the miner recently provided an update on the ongoing work at its Eagle Mine. The company has been addressing the aftermath of a heap leach failure last month, which released more than 300 million litres of cyanide solution into the surrounding ecosystem.
In response, Victoria Gold has undertaken several safety measures. A “job hazard analysis” is being conducted for all work sites exposed to risks from the spill. Restricted zones have been designated pending third-party geotechnical and related reviews. The company is also conducting a seismic survey to assess the heap leach facility embankment’s integrity.
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Daily water sampling continues at multiple locations, particularly downstream from the incident site. Out of 134 downstream samples collected as of July 23, seven have shown positive results for weak acid dissociable cyanide, ranging from 5.2 to 9.3 parts per billion. While these samples exceed Victoria Gold’s water quality objectives under its water-use license (maximum of 5 parts per billion weak acid dissociable cyanide), they remain well within Canadian drinking water guidelines (maximum of 200 parts per billion free cyanide).
To address water management, Victoria Gold is expediting the construction of additional containment ponds and deploying irrigation systems to unaffected areas of the heap leach facility. These efforts aim to enhance water treatment and discharge capacity, minimizing the release of untreated water into the environment. The company has also modified its infrastructure to facilitate a cyanide destruction and metals precipitation process, preparing to discharge treated water shortly.
Despite these efforts, material movement within the heap leach facility continues, prompting ongoing communication with regulatory authorities and local stakeholders. Production at the Eagle Mine remains suspended, with no clear timeline for resumption.
Baytex Energy Corp.
Baytex Energy recently announced its financial and operational results for its Q2 2024, reflecting strong performance and growth.
Q2 2024 highlights:
- Operational performance: Baytex reported an average production of 154,194 barrels of oil equivalent per day (boe/d), a 4 per cent increase from the previous quarter. This growth was driven by enhanced operational efficiencies and successful drilling programs, particularly in the Eagle Ford and Viking plays.
- Financial results: Total petroleum and natural gas sales reached C$1.1 billion, up from C$900 million in Q1 2024. Net income for the quarter stood at C$104 million (C$0.13 per share), compared with C$0.09 per share in the previous quarter, reflecting higher production volumes and favourable commodity prices.
Six months ended June 30, 2024:
- Operational and financial metrics: Average production for the first half of 2024 was 93,000 boe/d, up from 90,000 boe/d in the same period of 2023. Total sales reached C$1.98 billion, a 60 per cent increase from the previous year. However, net income for the first half of 2024 was C$89.8 million, down from C$265 million in the first half of 2023.
- Dividend payout: Baytex declared a quarterly cash dividend of C$0.0225 per common share, payable on Oct. 1, 2024, to shareholders of record on Sept. 15, 2024.
Outlook:
Baytex remains focused on maximizing shareholder value through operational excellence and capital deployment. The company aims to maintain current production levels while exploring opportunities to enhance its asset portfolio and achieve sustainable growth.
PyroGenesis Canada Inc.
PyroGenesis, a leader in advanced plasma processes and sustainable solutions, announced a major contract to complete a land-based Plasma Waste-to-Energy System for a European entity.
The contract, worth approximately C$1.94 million (€1.3 million), involves a conceptual and preliminary design phase starting in Q3 2024, scheduled to last up to one year. This phase aims to determine the cost estimate of the system’s construction, projected to range between C$120 million to C$160 million (€80 million to €105 million). The company will also work to establish the project framework through feasibility assessments, scope definition and risk identification.
The Plasma Waste-to-Energy System is based on PyroGenesis’ Plasma Resource Recovery System (PRRS), which transforms waste into reusable products such as syngas and chemicals such as methanol. The client, a European consortium, plans to use this system to process municipal solid waste, generating energy and chemical products.
“As European legislation concerning high carbon footprint/emission technologies, such as incineration, becomes more restrictive, we are seeing increased interest in our PRRS and similar systems,” P. Peter Pascali, president and CEO of PyroGenesis, said in a media release on this news. “We are confident in meeting the requirements set out in the design phase and look forward to replicating this success wherever carbon emissions and landfills are under pressure.”
For your consideration
The TSX’s impressive recovery this week underscores the importance of keeping abreast of company news … but will it last? Whether it’s Victoria Gold’s environmental response, Baytex Energy’s financial performance, or PyroGenesis’ innovative contracts, staying informed helps investors navigate the market effectively. Continue conducting due diligence to keep your portfolio aligned with the latest investing trends.
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(Top photo of an aerial view of Eagle Mine: Victoria Gold Corp.)