Tesla Inc posts narrower quarterly loss but says Model 3 sedan still on track, shares stay flat

Posted by on Feb 22, 2017 in earnings, Electric Vehicles, News, Press Releases, Tesla Inc., Transportation |

Tesla Inc. posted a narrower quarterly loss than estimated and said the much-anticipated Model 3 electric sedan remains on schedule, as Chief Executive Officer Elon Musk closes in on his pursuit of more mainstream car buyers. The electric-car maker expects to deliver as many as 50,000 vehicles in the first half of the year and still sees Model 3 production starting in July, according to a letter to shareholders Wednesday. The Palo Alto, California-based company lost 69 cents a share during the final three months of last year, a slimmer deficit than analysts projected. The confirmation for the car Tesla plans to sell for close to US$35,000 before incentives adds credence to Musk’s ability to deliver for investors who have bid up the 14-year-old company’s market value to rival those of automakers which have been around more than a century and sell millions of cars a year. Tesla’s shares were more overvalued than ever before as it approached its first quarterly earnings report since the acquisition of money-losing SolarCity Corp. Related‘People are covering like crazy’: Short sellers lose nearly $2 billion in Tesla tug-of-warTesla nears record, but investors still in the dark on SolarCity acquisition’s impact “The recent run-up in Tesla stock has less to do, in our view, with anything around the near-term financials, and more to do with the nearly superhero status of Elon Musk,” Brian Johnson, an analyst with Barclays Plc, wrote in a note to clients Wednesday before results. “Since Tesla is already valued as if it’s the next Nissan, Ford, or Honda, it implies that much of the future growth is more than already reflected in the stock price.” The fourth-quarter loss, excluding some items, was narrower than the US$1.14 a share average estimate among analysts surveyed by Bloomberg. The shares climbed 0.3 per cent to US$278.19 as of 4:45 p.m. in New York after the close of regular trading. Weekly output Model 3 output should exceed 5,000 vehicles a week at some point in the fourth quarter and 10,000 vehicles a week by sometime in 2018, according to the letter. The car will rely on the so-called gigafactory east of Reno, Nevada, that began producing battery cells earlier this year in partnership with Japan’s Panasonic Corp. The two also have said they’ll start jointly making solar cells and panels this summer at a factory in Buffalo, New York. “It is all about the Model 3, and Tesla says the suppliers are on time, which historically has been a thorn in Tesla’s side,” said Ben Kallo, an analyst at Robert W. Baird & Co. “SolarCity is not the drag that people thought it would be, and it’s actually adding cash to the balance sheet.” Tesla expects to...

Read More

‘The tide has turned against them’: B.C. LNG projects likely stranded beyond 2020 amid global glut

Posted by on Feb 22, 2017 in Christy Clark, Energy, Liquefied Natural Gas Production, LNG, Mihoko Manabe, News, Press Releases |

CALGARY — A new report suggests LNG prices will remain low well beyond 2020, further eroding Canada’s ambitions to become a prominent exporter of the super-cooled gas in coming years. Analysts at Moody’s Investor Service said that global LNG markets are likely to remain oversupplied well into the next decade as Asian demand for the gas weakens and new supplies begin entering the market. The estimate runs counter to some other analyst projections, which expect markets to balance in the next few years to create a so-called “second wave” of opportunity for would-be LNG exporters in Canada. The international LNG market has grown rapidly over the past few years as rising demand for the gas, particularly in Asian countries, kicked off a global race to meet future supply needs. Canada was among the countries vying to enter the market, and around 20 LNG export facilities were proposed to be built along the British Columbia coast, which would be fed by sizeable natural gas fields in northern B.C. and Alberta. In recent years substantial volumes of new supply started entering the market from facilities in Australia, the U.S. and elsewhere, satisfying demand for the gas. RelatedLNG markets could return to balance by 2021 and spur “second wave” of opportunity: analystPetronas said to eye new island for $27-billion Canadian LNG plan to ease opposition Mihoko Manabe, a Moody’s analyst who contributed to the report, said Canada’s missed opportunity to enter the LNG market is partly a result of oversupply. But she added that the shortcoming is also a result of political fumbles and local environmental opposition to the projects at a time when companies were more open to make major investments in Western Canadian LNG. “In the last few years, I think the tide has turned against them—and a lot of it is beyond the cyclical ups and downs of commodity prices,” Manabe said. Around 34 million tonnes per annum of LNG came online in 2016, the report said, with an additional 105 mtpa expected to be added over the next three years—roughly a quarter of the expected total LNG market in 2020. The Moody’s analyst doubts demand for large-scale LNG facilities will return to its former levels, even after markets eventually rebalance. Investors are more likely to flock toward smaller, more incremental developments at facilities that have already signed contracts with buyers. “It’s a lot more economic to expand an existing plant,” she said. Another threat is the growth of Floating Storage Gasification Units (FSGUs), as they are called in the industry, which offer much cheaper and more versatile supplies of LNG that can reach yet-untapped markets. “That has allowed the market to diversify into areas, like the Middle East...

Read More

Tangerine CEO Peter Aceto steps down, longtime executive Brenda Rideout appointed as replacement

Posted by on Feb 22, 2017 in Brenda Rideout, FP Street, ING Group NV, Press Releases, Scotia Group Inc., Tangerine |

The Bank of Nova Scotia’s online platform, Tangerine, has a new chief executive at the helm. The company announced on Wednesday that Peter Aceto, who has been its CEO since 2008, will be succeeded by longtime executive Brenda Rideout, effective on March 1. “It has been an honour to be part of Tangerine and I am proud of what we have accomplished for our clients,” said Aceto in a statement on Wednesday. “Tangerine’s success is due in large part to the strength of its team. Brenda is an exceptional leader and is the right person to lead the organization and deepen the relationship it has with its customers.” Aceto had been with the organization, formerly called ING Direct, for more than 20 years. RelatedTangerine looks to shake up Canadian retail banking space, add one million new customersApple Pay now supported by President’s Choice Financial, Tangerine for credit card purchases “As it has successfully transitioned from a niche savings bank to one that offers a full suite of products, he decided that it was the right time to think about opportunities outside of Tangerine,” a Tangerine spokesperson said in an email to the Financial Post. “He is not remaining in another capacity.” Rideout joined the company 17 years ago, and “has led many of the bank’s most strategic initiatives including the launch of several direct banks internationally under ING Group, the brand transition to Tangerine and has been instrumental in growing the bank’s Canadian presence.” James McPhedran, executive vice president, Canadian banking, at Scotiabank, said Rideout is “an extremely talented, experienced and capable leader.” “We congratulate her on this important appointment,” he said in a statement. “We also thank Peter for his dedication and wish him well in his future endeavours.” Rideout said she was “excited to lead Tangerine.” “It has been a pleasure working with Peter,” said Rideout. “He’s a tremendous leader and has been an important part of Tangerine’s success. On behalf of the team, I’d like to thank him for his vision and leadership.” ING Direct Canada was launched in Canada in 1997 and it was bought by Scotiabank from ING Groep NV in 2012 for $3.1 billion. Tangerine now operates independently as a wholly-owned subsidiary, and has more than 2 million clients and close to $38-billion in total assets. Financial Post aligaya@postmedia.com...

Read More

Glen Eagle Resources: Toll Milling in Honduras

Posted by on Feb 22, 2017 in Glen Eagle Resources, gold, Honduras, Jean Labrecque, Press Releases, Small Cap News, V.GER |

In some parts of the world artisanal gold mining is a well-established, but frequently inefficiently run, fact of life. Part of the inefficiency lies in the fact that none of the artisanal mines are big enough to operate modern milling and processing technology. Which can create significant opportunities for companies willing and able to invest in this technology and process the artisanal miners’ ore. Jean Labrecque, President and CEO of Glen Eagle (V.GER) realized the potential of a toll milling operation when the opportunity to acquire a small, private, Honduran company came his way. The private operator had reached his financial limits without being able to afford modern equipment. Labrecque liked the location in Southern Honduras. “It was safe and it was surrounded by rich deposits.” Labrecque said. “So we bought the whole company.” In a sense, the “whole company” was a set of relationships with artisanal miners. “The miners bring their rocks in trucks. Biggest truck is maybe ten tons. Even though we’ve asked them to bring the rock loose, the miners put it into 100 pound bags. It is how they keep track of what they are bringing.” said Labrecque, “The minimum grade we will accept is six grams per ton and most of the rock we buy is 10 to 20 grams per ton. The miners usually keep the higher grade, up to 70 grams per ton, and process it themselves.” “The key thing for Glen Eagle is that we are in the area. Our people know the miners. Our plant manager is the key man. And we have an agent from the area who brings in business.” said Labrecque. “We buy the rock at a set price. We assay the rock first and we pay the miner two weeks after we get the material. The miners know what they are bringing and what they can expect to be paid for it.” Glen Eagle has built its processing facility carefully. “Right now we are small. We can process 30-35 tons a day. But there are parts on the boat which will let us expand our operation to 100-125 tons a day by next summer.” said Labrecque. “We’re essentially doing in Honduras what Dynacor Gold Mines (T.DGN) has been doing in Peru for years.” said Labrecque. It is an interesting comparison to make. Dynacor has a new, modern, plant in Chala Peru with an initial processing capacity of 300 tons per day. It enjoys a market cap of $97 million dollars. Glen Eagle is only running 30-35 tons per day through its plant and it is not surprising that its market cap is $11.3 million. However, making heroic assumptions about the companies having similar business models and...

Read More