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TSX Gains; Crescent Point Buys Spartan Delta Assets; Lundin Stake In Chile Mine

Published 2023-03-28, 01:31 p/m
Updated 2023-03-28, 01:34 p/m
© Reuters

By Ketki Saxena

Investing.com -- The TSX traded in the green at midday, even as Wall Street struggled for direction between receding worries of banking fears and rising treasury yields as investors bet on the Federal Reserve’s path forward.

The commodity heavy Canadian index was supported by gains in crude,

The Biggest Stories on Bay Street

Crescent Point Energy (TSX:CPG) has announced it will acquire Spartan Delta’s assets in the Albertan Montney play for $1.7 billion in cash. Crescent point says that the deal will increase adjusted funds flow and excess free cash flow per share by about 20 per cent%, and add approximately 38,000 barrels of oil equivalent per day to production. Spartan Delta meanwhile will deliver the lion’s share of cash from the deal straight to shareholders through a $9.50 per share special dividend.

Lundin Mining (TSX:LUN) will pay US$950-million to buy a 51% share in a company that operates the Caserones mine in Chile, paying US$800 million upfront and a further US$150 million over the six years following the transaction’s completion. The deal also includes an option for Lundin to buy an additional 19% stake in the mine for US$350 million within five years of the deal’s completion. The deal is expected to boost Lundin’s copper output by about 50% from 2022 levels.

Canadian Stocks Moving Markets Today

Top Gainers:

  • Spartan Delta Corp (TSX:SDE)
  • Equinox Gold (TSX:EQX)
  • Lundin Mining Corporation (TSX:LUN)

Top Losers:

  • goeasy Ltd (TSX:GSY)
  • Lumine Group Inc (TSXV:LMN)
  • Tilray (TSX:TLRY)

In Canadian Economics

The Canadian federal government is set to release its 2023 budget today in Ottawa at 4:00 p.m. ET. Finance Minister Chrystia Freeland has noted that the budget will "exercise fiscal restraint" to avoid adding ““fuel on the fire of inflation” as the Bank of Canada is battling to bring consumer prices back to their 2% target.

However, the budget is likely to include more highly-targeted relief measures - including a grocery rebate for low income Canadians. The budget is also likely to include tax credits or spending aimed at the clean energy sector, and healthcare spending as part of deals agreed with the provinces and territories.

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