Buzz on the Bullboards: Key mining, energy and cannabis stocks to watch

September has continued to deliver surprises for investors on Bay Street and Wall Street.

Canada’s main stock index, the TSX, reached a couple of record highs earlier this week as investors eagerly anticipated the U.S. Federal Reserve’s upcoming monetary policy decision. However, the rally fell short as traders took stock of the first U.S. Federal Reserve interest rate cut in four years. The Fed announced a cut of 0.5 per cent, bringing its overnight rate to 4.75-5 per cent. Meanwhile, Canada achieved its 2 per cent inflation target this week, adding to the market’s dynamic environment.

The mining sector has performed well this week, with notable news from American Creek Resources Ltd. (TSXV:AMK, Forum) which announced its project operator and JV partner, Tudor Gold Corp. (TSXV:TUD, Forum), has produced results from the fifth hole completed in the 2024 exploration drilling program at the flagship Treaty Creek property in northwestern British Columbia. The 2024 program, recently completed, totalled 10,530 metres with all crews and drilling equipment demobilized from the site.

The Supercell-One Zone (SC-1), identified earlier this year, represents a significant potential economic target within and peripheral to the CS-600 Domain. The system has expanded with the discovery of two additional sub-parallel hydrothermal gold-bearing quartz micro-breccia systems above the original SC-1, now labelled SC-1C. The reported intercept of high-grade gold mineralization within drill hole GS-24-185 expands SC-1C by stepping out from previous drilling intercepts by 255 metres up-dip and 140 metres along strike. The gold-rich SC-1 system occurs within an area measuring up to 800 metres in length by 400 metres in depth, with all three sub-parallel structures remaining open in all directions and to depth.

SC-1C Drilling Highlights (2024):

• Hole GS-24-185 intersected a high-grade interval of the Supercell-One System
  • SC-1C: 9.60 grams per ton gold equivalent (g/t AuEQ) over 13.50 metres (9.58 g/t Au, 0.44 g/t Ag, 0.01 per cent Cu)

American Creek resources stock is up more than 88 per cent since the year began.

The energy sector has experienced a rocky week, but Tamarack Valley Energy Ltd. (TSX:TVE, Forum) has shown resilience. The company, along with Wapiscanis Waseskwan Nipiy Holding Ltd. Partnership, announced the expansion of the Clearwater Infrastructure Limited Partnership (CIP) this week to include Bigstone Cree Nation as the 13th member of WWN.

Tamarack transferred an additional C$50.8 million of certain Clearwater midstream assets into the CIP for cash consideration of C$43.2 million and maintains a 15 per cent operated working interest in the CIP. The expansion closed on Tuesday.

Year-to-date performance has allowed Tamarack to allocate incremental capital within the existing base budget, with capital guidance for 2024 remaining unchanged at C$390 million to $440 million. The company is expected to finish the year at the upper end of this range, with annual production trending towards the high-end of the 61,000 to 63,000 barrels of oil per day (boe/d) range. Tamarack will drill four Charlie Lake wells in Q4/24, with production forecasted to peak at more than 2,100 boe/d in Q2 2025. This incremental 2025 production will be directed to the new CSV Albright sour gas plant currently under construction.

Tamarack Valley Energy stock is up nearly 33 per cent since the beginning of the year.

In the cannabis market, Tilray Brands Inc. (TSX:TLRY, Forum) has made significant strides. The company launched Redecan-branded medical cannabis in Australia via its subsidiary, Tilray Medical. The subsidiary is offering two EU-GMP-certified products under the iconic Canadian brand to patients in Australia:

• Redecan THC28 Purple Churro (15 g)
• Redecan THC28 Space Age Cake (15 g)

This expansion strengthens Tilray’s role as a leading provider of EU-GMP-certified medical cannabis to patients, physicians, pharmacies, hospitals, governments and researchers worldwide in more than 20 countries. Despite quadrupling revenue over the past five years, Tilray has been unable to translate its greater market share into net income, posting net losses since 2020.

While Tilray stock is down more than 20 per cent since the year began, it has risen 5.63 per cent over the past three months.

Investors should keep a close eye on market news to ensure their portfolios align with companies making significant strides and delivering strong results. Staying informed about the latest developments can help investors make strategic decisions and capitalize on emerging opportunities.

For previous editions of Buzz on the Bullboards, click here.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo of Tamarack Valley Energy’s oil and gas operations in Alberta: Tamarack Valley Energy)