Monday, July 10, 2006, 4:15 PM EDT (Thomson Financial Corporate
Services): The mining, energy, and telecom sectors underwent a flurry of
acquisitions and made new contract and project announcements that still
proved unable to boost Bay Street very far, as it waited nervously for
tomorrow's announcement from the Bank of Canada's governor, David Dodge,
about whether or not the lending rate of 4.25% will be raised. While
Governor Dodge has indicated in past weeks that the Bank will probably skip
a cycle after raising rates for the eighth time in a row, the market is
worried about too-fast growth, job and wage increases, lowering exports,
and a dismal manufacturing outlook generating inflation.
* The S&P/TSX Stock Exchange Composite Index rose 22.82 points, or
0.20%.
* After a short morning halt, Sxr Uranium Ore rose today on the news of
a US$110 million deal for the acquisition of a uranium mill and acid leach
facility in Wyoming from Australian mining giant Rio Tinto. The Sweetwater
uranium mill and Green Mountain properties will be paid for with US$65
million in cash, 6.1 million Sxr Uranium one shares worth US$45 million,
and 2.5 million share-purchase warrants. The buy can be added to the good
news posted last month by the company as it announced an increased estimate
of uranium and gold output from their Dominion project in South Africa.
* The CEO of nickel-miner Falconbridge expressed concern about
Xstrata's possible "creeping takeover" of his company. Derek Pannell has
been able to coax an extension of the company's poison pill until July
28th, but Xstrata has extended its cash bid until the 21st; Pannell is
concerned the Anglo-Swiss company plans to wait out rival Inco, especially
since Inco is considered unable to raise its bid of C$59.02. Meanwhile,
American company Phelps-Dodge's shareholders must wait to see the outcome
of the fight for Falconbridge before finalizing its US$40 billion bid for a
combined Falconbridge-Inco nickel mining operations.
* In telecom news, the Bell Aliant Regional Communications Income Fund
debuted on the TSX on Monday. With a value of C$10 billion, it is currently
the largest income trust in Canada to date. It will not affect customer
service, but does combine Aliant's wire line in the East with Bell Canada's
rural wires in Ontario and Quebec.
* Anadarko Petroleum has decided to sell off its shares in a liquid
natural gas terminal project in NS to U.S. Venture Energy for C$125
million. It has already spent C$100 million on the project near the Canso
Causeway. The sale is part of its strategy to divest from Canada and use
money from the sales to help with its purchase of Kerr-McGee and Western
Gas Resources.
* Suncor Energy has completed its new C$120 million St. Clair, ON,
ethanol plant, and production has begun. It is hoped that the plant will
produce 200 million liters of ethanol a year, making it the largest such
plant in Canada.
* Another new plant will bring 330 jobs to Ontario, according to Toyota
Motor Corp. The Boshoku plant will make seats, door trim, and carpets in a
C$65 million facility in Woodstock.
-- Carolyn.Crapo@contractor.Thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services Canadian Commentary, which
is updated twice daily. The information herein is believed to be true and
accurate, we take no responsibility for inaccurate information and reserve
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SOURCE Thomson Financial Corporate Group
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