Stock news for investors: Strong gold prices, full theatres, and steady grocery sales mark Q2 for top TSX firms

The result compared with a loss of $21.4 million or 33 cents per diluted in the same quarter last year.

Revenue for the quarter totalled $361.8 million, up from $277.3 million a year earlier.

Theatre attendance amounted to 11.6 million, up from 8.7 million. Cineplex says it set all-time quarterly records for box office per patron at $13.68 and concession per patron at $10.04.

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Barrick Mining reports rise is Q2 profits despite US$1-billion writedown on Mali mine

Barrick Mining Corp. took a US$1.04-billion charge in its second quarter related to its loss of control of a gold mine in Mali, but still reported a rise in profit thanks to higher gold prices and an asset sale. 

The Toronto-based mining company said Monday it earned US$811 million or 47 cents US per diluted share for the quarter ended June 30, up from US$370 million or 21 cents US per diluted share a year earlier. Profits rose as the price it sold its gold at was up 41% from last year to US$3,295 an ounce. Gold prices have climbed in large part over instability fears raised by the economic policies of the U.S. Trump administration.

The higher gold price was offset somewhat by the writedown on the value of its Loulo-Gounkoto mine in Mali, after a June ruling by a judge in the country that it be placed under provisional administration for six months. 

Barrick Gold has been in conflict with Mali’s military rulers over alleged unpaid taxes and unfair contracts with past governments. The dispute culminated in an arrest warrant in December for Barrick CEO Mark Bristow and the company’s offer to pay US$370 million to the government. Since then, the government has also arrested Barrick employees, who remain detained, and suspended gold exports, but Bristow said on an conference call Monday that there was still a potential to solve the impasse outside the arbitration process. “We’re not at that stage where we don’t believe that we can, you know, find a resolution,” Bristow told the conference call to discuss the company’s latest financial results. “When you’re engaging and talking, there’s always an opportunity. Of course, there’s been some activity in Mali, which complicates the process.” He said the company continues to manage the situation in a measured and constructive manner, continuing with arbitration as it works to find a path forward.

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While the Mali charge weighed on results, it was also balanced by US$745-million gain in the quarter from the sale of a 50% interest in the Donlin gold project in Alaska. Since quarter end, the company has also announced the sale of its Alturas project in Chile for US$50 million, while it is also in talks to sell Hemlo, its last Canadian gold mine. 

Bristow said there’s a lot of appetite for mines like Hemlo, while the company has added significant gold reserves in recent years to make it a good time to review its holdings. “It makes sense to rationalize your portfolio from time to time,” he said. “And it’s a good time to do it when there are buyers out there in the market.” In its latest results, Barrick noted Hemlo, which produced 32,000 ounces in the quarter, is not considered a core part of its portfolio. 

On an adjusted basis, Barrick says it earned 47 cents US per share in its latest quarter, up from an adjusted profit of 32 cents US in the same quarter last year. The mean analyst estimate had been for earnings of 45 cents per share, according to LSEG Data & Analytics. Revenue for the quarter totalled US$3.68 billion, up from US$3.16 billion a year earlier. Gold production in the quarter totalled 797,000 ounces, down from 948,000 a year ago. Copper production totalled 59,000 tonnes, up from 43,000 tonnes a year ago.

Overall results were mixed, said RBC analyst Josh Wolfson in a note, with operating results in line with expectations while financial results were noisy in part because of the asset sales.

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Maple Leaf Foods reports Q2 profit rose, driven by pork business

Maple Leaf Foods Inc. reported its second-quarter profit of $57.8 million, compared with a loss of $26.2 million a year ago. Its earnings amounted to 46 cents per diluted share for the quarter ended June 30, up from a loss of 21 cents per share in the same quarter last year, the company said on Thursday. 

On an adjusted basis, Maple Leaf says it earned 56 cents per share in its latest quarter, up from an adjusted profit of 18 cents per share a year earlier.

Sales for the quarter totalled $1.36 billion, up from $1.26 billion a year ago. Maple Leaf said its prepared food sales increased 7.5%, while poultry sales increased 8.5%. Pork sales rose 10.7%.

Chief executive Curtis Frank said the company’s results improved because of profitability in its pork business, and that Maple Leaf expects the spin-off of its pork unit into a standalone company called Canada Packers Inc. will be completed by the end of the year. 

“We continue to make excellent progress toward completing the spin-off of Canada Packers, supported by resounding shareholder approval and accelerating operational readiness,” Frank said in a release. Shareholders overwhelmingly approved the spinoff of Canada Packers in June. “This historic transaction will unlock significant shareholder value and establish two focused, market-leading companies,” he added.

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Restaurant Brands International Q2 profit down from a year ago

Tim Hortons parent company Restaurant Brands International Inc. reported its second-quarter profit fell compared with a year ago. The company, which keeps its books in U.S. dollars, reported net income attributable to common shareholders of US$189 million or 57 cents US per diluted share for the quarter ended June 30. The result was down from a profit of US$280 million or 88 cents US per diluted share in the same quarter last year.

On an adjusted basis, RBI says it earned 94 cents US per diluted share, up from an adjusted profit of 86 cents US per diluted share a year earlier.

Revenue for the company, which also owns Burger King, Popeyes and Firehouse Subs, totalled US$2.41 billion for the quarter, up from US$2.08 billion. RBI chief executive Josh Kobza says the company made progress in the quarter as sales trends improved for its two largest businesses, Tim Hortons and its international segment.

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Grocery and drugstore retailer Metro reports $323M Q3 profit, up from $296M

Metro Inc. reported a third-quarter profit of $323.0 million, up from $296.2 million in the same quarter last year. The grocery and drugstore retailer says its profit amounted to $1.48 per diluted share for the 16-week period ended July 5, up from $1.31 per diluted share a year ago. Sales for the quarter totalled $6.87 billion, up from $6.65 billion in the same quarter last year.

Metro chief executive Eric La Flèche says the results were marked by solid comparable sales growth in food and pharmacy, and good cost control. Food same-store sales were up 1.9%, while pharmacy same-store sales were up 5.5%, with a 6.2% increase in prescription drugs and a 4.0% increase in front-store sales, primarily driven by over-the-counter products, cosmetics, and health and beauty.

On an adjusted basis, Metro says it earned $1.52 per diluted share in its latest quarter, up from an adjusted profit of $1.35 per diluted share in the same quarter last year.

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