The top performer, Corvus Gold (TSX: KOR), was up 21% on receipt of a non-binding offer from AngloGold Ashanti (NYSE: AU).AU is offering $4 per share, which is 7% higher than our fair value estimate of $3.75.We had initiated coverage on KOR in 2017, when shares were trading at $0.84, implying a total return of 376%.
Global equity indices we track were down 2.4% last week amid a rebound in COVID-19 cases due to the Delta variant. Prices of mainstream metals retreated as well.
We believe the recent surge has increased uncertainties, and will likely push out the global economic recovery by a few weeks.
U.S. cannabis stocks declined despite the unveiling of a federal cannabis legalization bill.
As of July 19, 2021, the Canadian big four LPs were trading at an 89% premium (down from 93% in previous week) over their U.S. peers. The gap is narrowing as U.S. cannabis stocks have been outperforming their Canadian peers in recent weeks.
Rising competition due to increasing store-count is driving down margins of retailers in ON.