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Ontario Teachers' signs US$300M investment deal with New Gold – BNNBloomberg.ca

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New Gold Inc. surged after forming an unusual partnership with Ontario Teachers’ Pension Plan that gives the miner US$300 million in exchange for selling a portion of the free cash flow from its flagship operation.

Miners often sell rights to future production called streams, as well as royalties, to help finance development of big projects.

But in the agreement announced Tuesday with the Canadian pension fund, New Gold will sell a 46 per cent free cash flow interest from its New Afton mine over four years. After the term ends, Teachers’ has the option to convert it into a 46 per cent joint venture interest in the British Columbia mine, while New gold retains an “overriding” right to buy back the stake under certain conditions.

Investors showed their approval by pushing shares of the Vancouver-based miner up as much as 16 per cent in Toronto, the most since July, on a morning when gold was down. Before Tuesday, New Gold gained 2.6 per cent in the past 12 months, underperforming both bullion futures and its peers.

The deal is positive because it allows New Gold to help reduce its debt, while it makes the company a potential takeover target, according to Canaccord Genuity Capital Markets analyst Dalton Baretto.

“This transaction makes New Gold a more attractive takeover target to deep-pocketed, mid-cap gold producers who are looking to acquire production in safe jurisdictions,” Baretto said. However, the deal, with high costs to New Gold, has lowered the company’s net asset value, he added.

Rising gold prices have given miners of the precious metal a steady lift in the past year as investors flock to safe-haven assets amid turbulent global macroeconomic environment such as the coronavirus outbreak. However, New Gold has struggled to benefit from this surge amid missteps at its Rainy River mine in Ontario.

The New Afton deal may allow the gold miner to regain its footing, said Laurentian Bank Securities analyst Ryan Hanley, who upgraded the stock to a buy rating last week. “While we note the cost of funds may seem a bit high, the increase in financial flexibility and the potential impact of being able to use the funds to offset additional debt is a benefit,” he said in a note.

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For its part, Ontario Teachers’ move appears to be part of a larger strategy to diversify its portfolio. Lower-for-longer interest rates have pushed pension funds to cast their nets far and wide in search for returns amid a slew of geopolitical risks and trade tensions. Investors looking to diversify are seeking shelter in low-volatility assets that tend to be illiquid.

The fund is diversifying so it doesn’t “regret being overexposed to one asset class in particular,” Ziad Hindo, the chief investment officer of the $201.4-billion fund, said in August.

Ontario Teachers’ said it wasn’t available to comment on the New Gold deal Tuesday.

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How To Invest Money To Secure Your Family's Future – The Seeker

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How To Invest Money To Secure Your Family’s Future – The Seeker Newsmagazine Cornwall

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Elon Musk sold nearly $7 billion worth of Tesla stock—here’s how much money you’d have if you’d invested $1,000 in the company 10 years ago – CNBC

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Tesla CEO Elon Musk sold 7.92 million shares of the electric vehicle manufacturer worth about $6.88 billion between Aug. 5 and Aug. 9, according to a series of recent SEC filings.

As of Aug. 9, Tesla shares were valued at about $850 each at the close of trading. That price has fallen by a little over 9% since the close of trading on Aug. 4, when shares were $938 each, according to CNBC tracking.

As for how shareholders would fare longer-term, if you had invested $1,000 in Tesla one year ago, on Aug. 11, 2021, your investment would be up by about 23%, according to CNBC calculations, for a value of around $1,230, as of Aug. 10, 2022.

If you had invested $1,000 five years ago, on Aug. 11, 2017, your investment would be worth around $12,160.

And if you had invested $1,000 on Aug. 11, 2012 and given your investment a decade to grow, you’d have around $145,341 as of Aug. 10, 2022.

Musk’s latest sale comes despite his announcement earlier this year that there were “no further TSLA sales planned” after he sold about $8.4 billion worth of his company shares in April.

So what’s behind this latest move? The billionaire says it’s due to his ongoing legal battle with Twitter.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk tweeted, after replying yes to a question about if he was done selling shares.

Back in April, Musk announced his intention to buy the social media giant for $44 billion or about $54.20 per share. As of Aug. 10, Twitter shares were valued at about $44 each at the close of trading. A share of Twitter stock was valued at about $45 on April 14th when Musk made his announcement.

By July, however, the SpaceX CEO told Twitter that he wanted to cancel the deal. In a letter to the company, Musk’s lawyers claimed that Twitter failed to provide “information that would allow him ‘to make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.'”

Twitter called Musk’s attempt to bail out of the deal a “model of hypocrisy” and said his claims “lack any merit,” according to a legal complaint filed by the company.

Although Musk is now pushing for a public debate with Twitter CEO Parag Agrawal, the head of the microblogging site said he plans to let the courts decide the fate of this deal, with a trial set to begin in October.

When it comes to the stock market, be sure to do your research before investing and remember that a stock’s past performance can’t be used to predict future earnings. An alternative option to investing in individual stocks is to invest in the S&P 500, a stock market index that tracks the stock performance of 500 large U.S. companies.

Although the S&P 500 shrank by nearly 6% compared to this same time period last year, the index has grown by 71.94% over the past five years and 198.58% over the past decade, according to CNBC calculations.

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Canada Pension Plan Investment Board loses 4.2% in Q1, net assets total $523B – Cornwall Seaway News

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TORONTO — Canada Pension Plan Investment Board says its fund, which includes the combination of the base CPP and additional CPP accounts, lost 4.2 per cent in its latest quarter.

CPPIB ended the quarter with net assets of $523 billion, compared to $539 billion at the end of the previous quarter.

The board says the $16 billion decrease in net assets for the quarter consisted of a net loss of $23 billion and $7 billion in net transfers from the Canada Pension Plan.

The board says the fund’s quarterly results were driven by losses in public equity strategies, due to the broad decline in global equity markets.

It also says investments in private equity, credit and real estate contributed modestly to the losses this quarter.

CPPIB CEO John Graham says he expects “turbulence” in the business and investment environment to persist throughout the fiscal year.

This report by The Canadian Press was first published Aug.11, 2022.

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