Foreign investors added C$7.9 billion worth of Canadian securities to their portfolios in September. While the pace of foreign investment has slowed, down from C$12.1 billion in July, Canada still remains an attractive place for foreign investors looking to invest in a mature economy. Here is a How To.

By Karan Kumar – Exclusive to Resource Investing News

Investing in TSXForeign investors added C$7.9 billion worth of Canadian securities to their portfolios in September, according to the latest data from Statistics Canada. While the pace of foreign investments has slowed, down from C$12.1 billion in July, Canada still remains an attractive place for foreign investors who are eschewing the United States and Europe but looking to invest in a mature economy.

Statscan reported in November that foreign investment in Canadian equities slowed to C$306 million, adding that from December 2010 to June 2011, foreign investment in Canadian stocks through secondary markets totaled C$13.8 billion.

How to invest in the TSX

Foreign investors can easily invest in the Toronto Stock Exchange or another exchange in Canada through a broker or through private placements. Catherine Kee, a spokeswoman for the Toronto Stock Exchange, told Resource Investing News that about 40 percent of the volume traded on the TSX comes from outside of Canada.

Finding a broker is easy, Kee said, pointing out that investors can contact firms on Toronto Stock Exchange Participating Organizations and TSX Venture Exchange Member Firms from the homepage of the Toronto Stock Exchange. More than 1,500 companies are listed on the Toronto Stock Exchange and more than 2,000 on the Toronto Stock Exchange Venture exchange.

A broker handles an investor’s money, reviews and creates portfolios and buys and sells shares on the investor’s behalf. Brokers can help those seeking to invest in Canada monitor the market and come up with investment strategies. In Canada, brokers much be must have passed the Canadian Securities Course administered by the Canadian Securities Institute to make investment decisions on the behalf of individual investors.

Doug Casey, Chairman of Casey Research, said 60 percent of all the mining companies in the world are listed on Toronto Stock Exchanges. “Canada is the world’s largest exporter of minerals. That resource focus has made the Toronto Stock Exchange (TSX) and Toronto Venture Exchange (TSXV) meccas for the junior mining industry,” Casey added.

Why to invest in the TSX

Another reason Casey offers for investing in Canadian equities is that investors need to diversify out of the US dollar. “From 2002 to late 2010, the Canadian dollar gained 58 percent against the US dollar. By purchasing your stocks directly on the Canadian exchanges, (and thus in the Canadian dollar), your investments are not only protected against the US dollar losing value, they will appreciate with every tick down of the greenback. We think this is not only a basic tenet of proper diversification, but also a wise one in the current investment environment.”

The loonie appreciated 0.5 percent to C$1.0343 on December 15 afternoon, advancing from its lowest level in two weeks.

What to look out for

Casey advises investors to hire a full service broker even though trading via the Internet has made it easy to buy shares anywhere in the world. But he cautions: “You should never pay more than 3 percent to a full-service broker. And you should strive to pay no more than 1 percent for online purchases, which isn’t always possible, but that should be the goal.”

Another word of caution from Casey is regarding taxes in your own country if you invest in Canadian equities. “Although it’s not always the case, your holdings of a foreign stock may make you subject to US tax if the compa­ny is considered to be a passive foreign investment company (PFIC).” A foreign firm is considered a PFIC if either 75 percent or more of the company’s gross income is passive income or 50 percent or more of the company’s assets produce — or could produce — passive income, or are assets that produce no income. He adds that tax reporting requirements “are neither onerous nor complex, but they should not be ignored. Be sure to discuss the subject with your accountant or advisor.”

Why to invest in the Canadian market

John McCoach, President of the TSX Venture Exchange, said in May of this year that Canadian markets “have what the world is looking for right now. Strong and stable financial service companies – both Moody’s and the World Economic Forum ranked Canada’s banking sector number one in the world – and an abundance of natural resource companies.”

Even Canadian bonds have become more attractive for global investors. Bond buying increased by a net C$1.98 billion in July, as foreigners added C$3.18 billion in corporate debt while selling C$1.2 billion of government bonds, Statistics Canada reported.

“The global love affair with Canuck fixed income continued in July,” Michael Gregory, senior economist at Bank of Montreal’s BMO Capital Markets unit in Toronto, was quoted as saying in a Financial Times Deutschland story in September. “European sovereign debt risks and fears of a US Treasury downgrade were mounting, so global investors sought safer havens.”

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Kirkland Lake Gold Ltd. today reported that the Company has been advised by the Environmental Protection Authority Victoria of the Victorian Government that the EPA has determined that low-level frequency noise is being emitted by the Fosterville Mine. The EPA has provided the Company with a Notice to Investigate and an Improvement Notice focused on the low-level frequency noise which it believes is emanating from ...

Kirkland Lake Gold Ltd. (" Kirkland Lake Gold " or the " Company ") (TSX:KL) (NYSE:KL) (ASX:KLA) today reported that the Company has been advised by the Environmental Protection Authority ("EPA") Victoria of the Victorian Government that the EPA has determined that low-level frequency noise (in the range of 16-20 Hz) is being emitted by the Fosterville Mine.

The EPA has provided the Company with a Notice to Investigate and an Improvement Notice focused on the low-level frequency noise which it believes is emanating from the mine. Included within the notices are stated timelines covering a period of just over two months for investigating and resolving the issue of low-frequency noise as well as reporting to the EPA on modifications introduced and new testing completed. In addition, the EPA has indicated to the Company that additional action may be taken by the EPA that could result in restrictions on the use of certain equipment, primarily surface ventilation fans and surface drill rigs in the south portion of the mining lease, during the night, while the remediation period is completed. The potential impact of such measures on the Fosterville operations, should they be introduced, is currently being investigated.

Management at Fosterville has been aware of concerns expressed by residents in recent months regarding low-level frequency noise and has taken steps to evaluate and address these concerns. As part of these efforts, Fosterville commissioned two independent studies on noise levels produced by the mine. The studies were completed by accredited noise and acoustic specialist firms based in Australia, with both studies concluding that all mine generated noise was within regulatory limits.

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Thermo Fisher Scientific Inc. the world leader in serving science, today confirmed that its polymerase chain reaction TaqPath COVID-19 Combo Kit *, and TaqPath COVID-19 CE-IVD RT-PCR Kit *, which test for the presence of SARS-CoV-2, are not impacted by the emerging B.1.1.529, or Omicron variant, enabling accurate test results. The Omicron variant, which was designated a " variant of concern " by the World Health ...

- Thermo Fisher Scientific Inc. (NYSE:TMO), the world leader in serving science, today confirmed that its polymerase chain reaction (PCR) TaqPath COVID-19 Combo Kit *, and TaqPath COVID-19 CE-IVD RT-PCR Kit *, which test for the presence of SARS-CoV-2, are not impacted by the emerging B.1.1.529, or Omicron variant, enabling accurate test results.

The Omicron variant, which was designated a " variant of concern " by the World Health Organization (WHO), has more than 30 mutations in the spike protein alone. The WHO has reported that preliminary evidence suggests an increased risk of transmission compared to other variants of concern. This designation and information are leading to renewed travel restrictions and research to examine the variant's impact on efficacy of existing vaccines and tests. The WHO and European Centers for Disease Control have both reported that using S-gene target failure (SGTF) of the PCR assays as a proxy for the variant helped to identify Omicron. Cases of the variant were first identified in South Africa and have now been reported in at least a dozen countries around the world.

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Last week's top-gaining stocks on the TSX were Sierra Metals, Champion Iron, SouthGobi Resources, Verde Agritech and Forza Petroleum.

The S&P/TSX Composite Index (INDEXTSI:OSPTX) was trading at 21,198.01 by midday this past Friday (November 26). It closed the period at 21,129.53.

The index opened lower as energy stocks fell on the back of declining oil prices, which hit a two month low on the last day of the trading week.

On Friday, investors turned to safe haven assets as concerns over a new coronavirus variant increased. Gold gained, but silver fell and was on track for a weekly loss.

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Last week's top-gaining mining stocks on the TSXV were Adex Mining, Butte Energy, Noble Mineral Exploration, AurCrest Gold and International Iconic Gold.

The S&P/TSX Venture Composite Index (INDEXTSI:JX) ended last week on the decline, shedding 27 points shortly after the morning bell on Friday (November 26). It closed at 942.62.

Global markets were plunged into uncertainty as news that a recently discovered COVID-19 variant known as omicron may be more contagious and potentially vaccine resistant.

Several European and Asian nations scrambled during the last full week of November to implement border and flight restrictions in an effort to curb the spread of the variant, which was first detected in South Africa.


Concern that the new mutation could hinder economic recovery weighed heavily on North American markets, with most of the leading indexes slipping lower Friday morning. The energy sector bore the brunt of the declines, with West Texas crude oil dropping 9 percent and Brent crude losing 8 percent.

Gold also faced headwinds from the uncertainty. It fell below US$1,800 per ounce on Tuesday (November 23), and remained under pressure throughout the week, only briefly rallying above US$1,800 early on Friday.

Last week's five TSXV-listed mining stocks that saw the biggest gains are as follows:

Here's a look at what may have moved their share prices during the period.

1. Adex Mining

Explorer Adex Mining is developing the Mount Pleasant mine property in New Brunswick. The site houses two distinct deposits: the Fire Tower zone, which hosts a significant molybdenum and tungsten resource, and the North zone, which contains the world's largest indium reserve and one of North America's largest tin resources.

Adex filed a number of documents on SEDAR last week, including its latest management's discussion and analysis document. Company shares rose 50 percent for the last full week of November, ending the session at C$0.02.

2. Butte Energy

Butte Energy was previously engaged in the acquisition, exploration and development of petroleum and natural gas reserves in Western Canada. The company sold its last remaining asset in 2017 and currently has no active operations other than the completion of reclamation activities on previously abandoned wells.

Late last year, Butte brought on a new board and management team that is actively evaluating potential opportunities, including those outside of the oil and gas industry.

Last Tuesday (November 23), the firm released its interim financial statement and management overview.

"In order to fund future operations or acquisitions, the company will need to raise additional funds by way of equity or debt. There is no assurance that the company will be able to raise such funds on terms acceptable to it," the overview reads. "These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern."

Shares of Butte rose 36.75 percent last week, ending the session at C$0.20.

3. Noble Mineral Exploration

Noble Mineral Exploration has holdings in Canada Nickel Company (TSXV:CNC,OTCQX:CNIKF), Spruce Ridge Resources (TSXV:SHL,OTC Pink:SRCGF) and MacDonald Mines Exploration (TSXV:BMK,OTC Pink:MCDMF).

Additionally, the diversified explorer has an interest in the Holdsworth gold exploration property near Wawa, Ontario. The property is comprised of approximately 72,000 hectares of mineral rights in the Timmins-Cochrane areas of Northern Ontario known as Project 81. According to Noble, Project 81 hosts diversified drill-ready gold, nickel-cobalt and base metals exploration targets at various stages of exploration.

Last week, the company entered into a letter of intent (LOI) with Canada Nickel Company to option mining claims in the Mann, Hanna, Duff and Reaume townships. The deal will also see Noble sell its MRO patents in Kingsmill and Mabee townships to the nickel-focused company.

"We are extremely pleased to be able to invite Canada Nickel, with their expertise, to secure this very large land package as it represents a 20km strike length where evidence of nickel, cobalt, PGM's, rhodium and rare earth minerals have been found to be present in work carried out by past explorers," said Vance White, president and CEO of Noble. The LOI news sent shares of Noble 22.83 percent higher, ending the trading week at C$0.13.

4. AurCrest Gold

AurCrest Gold is a mineral exploration company focused on the acquisition, exploration and development of gold properties. Presently, the gold-centered firm has a portfolio of assets in Ontario, including the Richardson Lake, Ranger Lake and Bridget Lake gold projects.

In mid-November, the explorer released results from a spring/summer program at its 100 percent owned Ranger Lake property. The program consisted of nine drill holes designed to test one of three high-priority targets.

"Eight drill holes encountered sulphide veins and stringer zones over 1-7 metre intervals hosted in a metasedimentary sequence," the report reads. "Veins and host rocks are sheared and folded, and display characteristics consistent with stages of post-mineralization deformation and partial melting, the latter inferred by quartz-alkali feldspar leucosomal bands."

AurCrest shares added 22.46 percent last week to trade for C$0.35.

5. International Iconic Gold

Exploration company International Iconic Gold is focused on developing its wholly owned San Roque gold project, located in the Rio Negro province of Northeastern Patagonia, Argentina.

According to the company, a gold, silver and base metals resource assessment released in July 2019 shows an inferred mineral resource of 32.9 million tonnes grading 1.42 grams per tonne gold equivalent (AuEq) for 1,499,900 AuEq ounces at a cut-off grade of 0.6 grams per tonne AuEq.

Last Wednesday (November 24), the firm increased its ownership to 100 percent in Minas San Roque (MSR), which owns the legal title to the mining claims comprising Iconic Gold's flagship San Roque property.

"MSR's ownership of the deposit and the prospective geology around it are protected by a system of mine rights. Three federal government mining concessions, known as 'Minas,' totaling 94.5 square kilometers (sq. km) have been granted to MSR," the late November press release states. "In addition, MSR controls eleven temporary mineral exploration licenses, known as 'Cateos,' covering 645 sq. km around the Minas."

By Friday, shares of Iconic Gold had climbed 20.77 percent to close at C$0.14.

Data for 5 Top Weekly TSXV Stocks articles is retrieved each Friday at 11:00 a.m. EST using TradingView's stock screener. Only companies with market capitalizations greater than C$10 million prior to the week's gains are included. Companies within the non-energy minerals and energy minerals are considered.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Canada Nickel Company, MacDonald Mines Exploration, Noble Mineral Exploration and Spruce Ridge Resources are clients of the Investing News Network. This article is not paid-for content.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.


Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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Markets
TSX21125.90-487.28
TSXV944.05-31.53
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