HEADLINES
Manufacturing Sector PMI Slipped Into Contraction Territory at 49.6 in October
Canadian manufacturers are struggling under the weight of tariffs and broader uncertainty, with activity squeezed last month by a decline in output and the sharpest drop in new orders in more than a year, data showed.
The S&P Global Canada manufacturing purchasing managers index retreated in October to 49.6, a third straight monthly decline and the first time so far this year below the 50 threshold between expansion and contraction following a fall to 51.5 in September.
"Having enjoyed an uninterrupted run of solid growth throughout 2026 so far, Canada's manufacturing sector ran out of steam in October, recording a marginal deterioration in operating conditions overall," said Paul Smith, economics director at S&P Global Market Intelligence.
Canadian First Nations Launch Legal Challenges to Planned Pacific Link Oil Pipeline
Opposition to a planned crude oil pipeline to Canada's west coast is growing among indigenous communities who argue they have been left out of consultations in Prime Minister Mark Carney's efforts to fast track the development.
Nine First Nations said they have filed judicial review applications with the Federal Court requesting it overturn the Canadian government's listing of the Pacific Link pipeline as a project of national interest.
The applicants, including communities located along the proposed pipeline and tanker shipping routes--plus communities who rely on Fraser River salmon--argue that Ottawa, among other things, breached its duty to consult them prior to the listing decision.
Blackstone Leads $3.1 Billion Investment in Mitsubishi's Stake in LNG Canada
A Blackstone-led group has agreed to invest $3.1 billion in Mitsubishi Corp.'s interest in a natural-gas liquefaction project in Canada.
The U.S. investment firm said that its funds, in partnership with Canadian institutional investors, have agreed to acquire a 49.9% noncontrolling stake in a Mitsubishi subsidiary that holds the Japanese trading house's interest in the liquefaction business in British Columbia, the project known as LNG Canada.
Mitsubishi Corp. said the funds will join as a financial partner, and the transaction won't affect the Japanese company's LNG offtake volumes or customers.
Capital Power Quarterly Profit, Revenue Drop
Capital Power's profit fell in the third quarter as revenue was dented by a shift in the unrealized fair value on commodity derivatives and emissions credits.
The Alberta-based power producer recorded third-quarter net income of C$67 million, or C$0.37 a share, down from C$153 million, or C$0.94, a year earlier.
Revenue and other income declined to C$831 million for the three months from C$1.21 billion in 2025, squeezed by unfavourable changes in unrealized fair value on commodity derivatives and emission credits, primarily in the U.S. flexible generation segment, the company said.
Bright Minds Biosciences' Application for Seizure Drug Gets Put on Hold by FDA
Bright Minds Biosciences said the U.S. Food and Drug Administration put the company's application and planned trial for a drug to treat seizures on a partial clinical hold following a review.
The stock dropped 52% to C$36.98.
The FDA primarily cited toxicity in mice, as well as inadequate pharmacokinetic and juvenile toxicity data to support proposed pediatric enrollment, Bright Minds said.
Bright Minds said it believes the FDA's observation of toxicity in mice was not seen in other species, and that the findings were not related to its drug, with the company citing toxicity reports, peer reviewers and independent toxicology expert opinions.
Tidewater Midstream to Consolidate Control of Tidewater Renewables Subsidiary in $187 Million Deal
Tidewater Midstream & Infrastructure moved to take full control of its Tidewater Renewables renewable fuel subsidiary with an agreement to buy out minority investors.
The Canadian energy infrastructure company said it entered a definitive arrangement agreement to buy all shares in Midstream not already owned for about C$261 million. Tidewater Midstream already owns a roughly 65% stake in its subsidiary.
Minority shareholders of Renewables will be offered 0.88 of a Tidewater Midstream share for each share held, implying a value of C$20.58 per Renewables share.
POET Technologies Names Giovanni Pacelli Chief Financial Officer
POET Technologies has hired Giovanni Pacelli as the opto-electronic solutions developer's new chief financial officer.
POET said Pacelli succeeds Thomas Mika, who had been the Toronto company's finance chief for the past 10 years.
Pacelli joins POET from Silicon Labs, where he had been senior director of finance, the company said.
Maritime Launch Services Gets Final Approval for Toronto Listing
Maritime Launch Services will begin trading on the Toronto Stock Exchange on Tuesday.
The Nova Scotia-based commercial space company said it has received final approval from the stock exchange to list.
The company's share's will cease trading on Cboe Canada when the market closes Monday.
TALKING POINT
Equinox Gold Stock Looks Like a Diamond in the Rough
By Jacob Sonenshine, Barron's
Out of all the ways to benefit from a potential gold rally, buying stock in the $12 billion miner Equinox Gold is among the best.
This might seem an arbitrary take, given the many publicly traded gold miners. But Vancouver-based Equinox, which is covered by just 13 Wall Street analysts, is more a diamond in the rough than a mere beneficiary of higher gold prices. With multiple published materials every quarter (its second-quarter summary runs 43 pages), it's a fairly communicative company that's on the doorstep of demonstrating productivity improvements in several of its six mines. It could therefore boost its valuation toward the rest of the industry, and of course would see its earnings explode higher if gold prices do the same.
This scenario would likely spark larger stock gains for Equinox than for other miners, thanks to its lower valuation. The industry would see profit expectations rise, while Equinox's self-help story would give it the kicker of an expanding price/earnings multiple.
This thesis begins with the argument for higher gold prices. The precious metal is down 24% from its record high in January, to about $4,050 an ounce. That isn't surprising, given that it has about doubled in the past three years, almost begging traders to take profits. But like clockwork, it always sees support above the roughly $3,900-to-$4,000 area, where buyers have swooped in all year to stabilize the price. Even with the recent dip, gold remains in its larger uptrend of the past three years, suggesting buying support is close by.
"We look at this as another generational opportunity to get into gold at a relatively low basis," says Ben McMillan, chief investment officer at IDX Advisors. "The upside for gold is extremely robust."
Sparking some of that upside would likely be central banks, which are diversifying their reserves away from U.S. dollars in the face of geopolitical tensions. The third-largest buyer in the second quarter, central banks and other institutions increased their net purchases of ounces by over 400% quarter over quarter, according to the World Gold Council. They tend to buy more on dips, which should give gold-related investors confidence in the commodity's long-term trajectory.
"Central banks are not speculators," McMillan says. "If ever there was a buy-the-dip participant, it's those guys when it comes to gold."
Higher gold prices mean earnings gains for miners -- including Equinox, which saw almost all of its $770 million in second-quarter revenue from gold. When the price of gold rises, expected sales rise. Miners have many fixed costs, such as depreciation and other exploration costs that don't change quickly. So, higher sales means higher profit margins, sending earnings up by a larger percentage than sales.
Just imagine what would happen to earnings estimates if gold reclaims its record high, 31% above current levels. Equinox would participate in the party, with the added tailwind of operational improvements.
It just acquired Orla Mining, which has two mines, one in Mexico and the other in Canada. The deal, a mostly stock transaction that closed in July, increases Equinox's overall operating profit margin as the two Orla mines carry higher profit margins after accounting for all-in sustaining costs per mine versus Equinox's mines. The company's 2026 guidance implies it expects Orla's mines to produce almost 400,000 ounces of gold annually, about one-third of the company's expected 1.1 million ounces.
If the market sees that Equinox is integrating Orla without surprise costs or hiccups, it will price the higher margins into the stock. Often, the market remains skeptical of an acquirer until it sees successful integration, a risk to the story, but there's currently no reason to doubt it.
"The integration will wrap up by the end of this year," Jason Simpson, incoming Equinox CEO and former Orla CEO, tells Barron's. "We're well on our way to that."
Two other Equinox mines, Greenstone and Valentine, both in Canada, have room for improved margins. Their profits per ounce of production lags behind those for "senior" gold producers -- slightly larger miners Equinox aspires to rival, namely Kinross Gold, Alamos Gold, and Agnico Eagle Mines.
That's where Equinox's "trommel" comes in. That's a machine that sorts out certain earth material during the mining process to pull out more gold-bearing rock faster. The company is installing the trommel this year. Current and outgoing CEO Darren Hall said on the second-quarter earnings call that the company will see some benefits of the equipment before year end.
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