Canadian Stocks Slumping With Hard Slide For Gold Miners; DragonWave Slammed After Downward Revenue Revision

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After some fluctuating up and down, Canada's main stock market, the Toronto Stock Exchange, is back near where it started, down around 50 points with most sectors lower.

Metals & Mining stocks are especially hard hit today, falling 2% as a group. Among the losers, Golden Minerals (AUM.TO, AUMN) is down 12% and has hit new 52 week lows after the miner late Friday said its FY12 net loss widened to $92 million from $63 million during the prior year. The FY12 loss includes a $58.5 mln non-cash charge associated with goodwill impairment plus another $10 mln in depreciation and amortization costs and $7.9 mln for project expenses at its Velardena operations.

Also, IAMGold (IMG.TO, IAG) is down about 4% and has also hit new 52 week lows after announcing plans to reduce its spending by $100 mln per year. The plan includes several cost-cutting initiatives aimed at reducing mine operating costs and exploration expenditures as well as trimming corporate and administrative costs.

But on the plus side, Aurizon Mines (ARZ.TO, AZK) is up 4% after receiving a $796 mln buyout offer from Hecla Mining ( HL ). AZK shareholders have the choice of receiving either C$4.75 per share in cash or C$3.11 per share in cash plus 0.34462 of a HL share.

AZK previously rejected a $780 mln takeover bid from Alamos Gold (AGI.TO, AGI), another Canadian mining company in January. HL shares are down nearly 13% and nearer to year lows this afternoon.

Much of the decline for tech issues today is the result of a 20% tumble by DragonWave, Inc. (DWI.TO, DRWI) after the networking equipment company trimmed its Q4 revenue forecast, now expecting just $30 mln in quarterly sales after Nokia ( NOK ) cut back on its purchases during the three months ended Feb. 28. Analysts, on average, are expecting about $42.29 mln in revenue.

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

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
Referenced Symbols: HL , NOK

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