WestJet, Canada’s second largest airline, is now offering complimentary COVID-19 insurance for eligible passengers for travel to and from the US, Europe, the UK, Mexico and the Caribbean until August 31, 2021. The carrier joins Air Canada in offering free Covid-19 insurance in an effort to boost sales as more Canadians elect to stay home or travel domestically to avoid Canada’s 14-day quarantine for international travelers.

Originally WestJet’s insurance did not include US coverage but will now cover travel to the United States. On September 25, 2020 WestJet announced that “guests travelling to, through or from the United States are now eligible for the airline’s enhanced $200,000 CAD COVID-19 travel insurance coverage for air-only and vacation reservations. The enhanced coverage will retroactively include all bookings made as of September 18, 2020 and will increase by $100,000 CAD to include up to a maximum of $200,000 CAD at no additional charge to eligible guests.”

Eligible bookings include any WestJet air-only reservation, including WestJet Vacations bookings for travel to and from the U.S., Mexico, the Caribbean, Europe (including U.K.) and inbound to Canada. These trips will be eligible for coverage for up to 21 days for travel into and including August 31, 2021. For one-way travel reservations, coverage is available for up to seven days.

Arved von zur Muehlen, WestJet Chief Commercial Officer, said that “Our research shows that a lack of COVID insurance is a considerable barrier to travel and our guests were seeking the inclusion of U.S. destinations to our travel insurance offering. Eligible guests travelling to and from the destinations we serve can now have an added layer of confidence

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar rose to a more-than two-week high against the greenback on Thursday as higher oil prices and the potential for U.S. stimulus offset comments from Bank of Canada Governor Tiff Macklem, leaving negative interest rates on the table.

U.S. stocks climbed as President Donald Trump fueled hopes of fresh fiscal aid, while the price of oil, one of Canada’s major exports settled 3.1% higher at $41.19 a barrel on support from output shutdowns ahead of a storm in the U.S. Gulf of Mexico.

“The market is coming to terms with an era of easy money from central banks and governments and it’s undoubtedly beneficial to a commodity exporter,” such as Canada, said Adam Button, chief currency analyst at ForexLive.

“Hopes for American stimulus and the rise in oil prices has overshadowed Macklem’s cryptic comment on negative rates,” Button added.

The Bank of Canada is not actively discussing negative interest rates but they are a tool the bank could use in case it needs to do more to tackle economic challenges caused by the coronavirus outbreak, Governor Tiff Macklem said. “Never say never,” he said.

The Canadian dollar <CAD=> was trading 0.4% higher at 1.3201 to the greenback, or 75.75 U.S. cents. The currency touched its strongest intraday level since Sept. 21 at 1.3198.

Canadian housing starts fell by more than expected in September, tumbling 20% to 208,980 units from a revised 261,547 units in August, data from the Canadian Mortgage and Housing Corporation showed.

Canada’s jobs report for September is due on Friday.

Canadian government bond yields eased across much of the curve in sympathy with U.S. Treasuries on Thursday. The 10-year <CA10YT=RR> fell 1.2 basis points to 0.612%, pulling back from an earlier five-week high at 0.639%.

(Reporting by Fergal Smith;

Canadian Pacific Keith Creel. Source: Globe And MailCanadian Pacific Keith Creel. Source: Globe And Mail

Canadian Pacific (CP) reports earnings Oct. 28. Analysts expect revenue of $1.4 billion and EPS of $3.23. The revenue estimate implies a Y/Y revenue decline in the mid-single-digit percentage range. Investors should focus on the following key items.

Falling Rail Traffic

In 2019 railroads faced headwinds to their top lines. The pandemic has exacerbated the situation and business activity has free fallen. For the first 39 weeks of 2020, cumulative rail traffic for Canadian railroads was down 7.7%. Last quarter, Canadian Pacific’s rail traffic fell 14% Y/Y and its average selling price (“ASP”) rose over 5%. Over half of the company’s major product segments experienced revenue declines.

Canadian Pacific Q2 2020 revenue. Source: Shock ExchanangeOn a combined basis, Grain, Energy and Intermodal represented more than 65% of total revenue. Grain revenue was up 6% on a 5% rise in carloads and 1% rise in ASP. Lower Grain volumes in the U.S. partially offset record Grain volumes in Canada during the quarter. Revenue from the Energy, Chemicals, Plastics segment fell 1% on a 28% decline in carloads and 37% increase in ASP. COVID-19 triggered lower demand for crude and liquefied petroleum. Intermodal revenue was off 10% on a 5% decline in carloads and 5% decline in ASP. The segment should ebb and flow with the vagaries of the global economy.

Canadian Pacific’s carloads fell 14% Y/Y. Only three of its major product categories experienced increases in volume.

Canadian Pacific carloads. Source: Shock ExchangeCarloads for Grain rose in the low-single-digit percentage range on the strength of volume in Canada. Intermodal volume fell 5% Y/Y and I expect it to face long-term headwinds. Intermodal represented more than 40% of the company’s total carloads, so its performance will likely have an outsized impact on Canadian Pacific’s total volume.

The company hiked prices 5%, a sharp departure from competitors

InMed Pharmaceuticals, a clinical stage biotech developing cannabinoid-based products, announced terms for its IPO on Thursday.

The Vancouver, Canada-based company plans to raise $10 million by offering 2.4 million shares at $4.13, above the last close of its shares on the OTCQX (IMLFF) and the Toronto Stock Exchange (IN). The company is also offering warrants to purchase 2.4 million shares of common stock at an assumed exercise price of $4.13. At the proposed price, InMed Pharmaceuticals would command a market value of $32 million. Because the company is offering warrants and its market cap is below $50 million, InMed is no longer eligible for tracking and will be excluded from Renaissance Capital’s stats.

InMed Pharmaceuticals is developing an API using a synthetic cannabinoid named cannabinol, or CBN, and plans to develop its two products INM-755 for rare skin disease Epidermolysis Bullosa (EB) and INM-088 for glaucoma. INM-755 is currently in a Phase 1 trial in The Netherlands.

InMed Pharmaceuticals was founded in 2014 and plans to list on the Nasdaq under the symbol INM. Roth Capital is the sole bookrunner on the deal.

The article Canadian nano-cap biotech InMed Pharmaceuticals sets terms for $10 million Nasdaq uplisting originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article

Pretium Resources (NYSE:PVG) is a mid-tier gold producer that operates the high-grade Brucejack mine in British Columbia, Canada. Brucejack is one of the newest and highest grade mines in the sector, but has been plagued by volatile operational performance since going into production in mid-2017. After widely missing guidance in 2019, management released an updated reserve and mine life in the first quarter of this year that showed lower grades and production, sending the stock tumbling further.

Despite these challenges, the company has been surprisingly consistent in generating free cash flow and reported a record second quarter that sent its shares up 25% in one day. With gold prices now hovering around $1,900 per ounce, Brucejack could be one of the most profitable independent assets in a tier-one jurisdiction, making it an attractive takeover target for larger producers looking to grow production.

Looking at a five-year chart, it’s clear that the company has had frequent ups and downs. Many investors have been turned off by the roller-coaster trajectory of the share price, with the typically volatile price of gold looking much more stable in comparison.

Five-year share price performance

(Source: YCharts)

Brucejack: A Troubled Asset with Long-Term Potential in a Top Jurisdiction

After Pretium acquired the project for $450 million in 2010 and started aggressively drilling newly discovered zones, the mine progressed through economic studies and permitting before reaching commercial production in July 2017. Over the past decade, the project has seen many highs and lows, from heightened expectations by promotional management of a tier-one mine to engineering consultants and critics who suggested the project was not mineable at all.

The vein system being exploited at Brucejack is very high grade but complex, making consistent mine planning difficult. Going back to 2018, the first full year of commercial production, head