The Globe and Mail - 06.11.2019

Your Business. Your Passion.

You’ve invested everything in your business. And with

that much on the line, it helps to have an advisor

who’s completely invested in your success.

At MNP, we know that means more than maximizing

revenue and streamlining your operations. It’s

ensuring you can keep doing what you love and

perform at your best.

Wherever Business Takes You

RUGBY

WolfpackhopeSonnyBill

WilliamscanbetheirBeckham,

CathalKellywrites B13

BASKETBALL

Raptorscoachcallsout

PascalSiakamforhishabit

ofgettingintofoultrouble B13

TENNIS

Renewedfocusonfootwork

payingoffforCanada’s

DenisShapovalov B20

SPORTS

B13-B20

OTTAWA/QUEBEC EDITION ■ WEDNESDAY, NOVEMBER 6, 2019 ■ GLOBEANDMAIL.COM

S&P/TSX

16,681.92

+12.11

DOW

27,492.63

+30.52

S&P500

3,074.62

-3.65

NASDAQ

8,434.68

+1.48

DOLLAR

76.03/1.3153

-0.03/+0.0005

GCAN10-YR

1.6%

+0.08

OIL(WTI)

US$57.23

+0.69

GOLD(oz.)

US$1,483.70

-27.40

A little more than six months after buying

Goldcorp Inc.,NewmontGoldcorpCorp.is

struggling to make the acquisition work.

On Tuesday, Denver-based Newmont

missed analyst estimates for the third

quarter and cut its production forecast for

the year, as the world’s biggest gold com-

pany contends with operational problems

at mines formerly owned by Vancouver-

based Goldcorp.

During the quarter ended Sept. 30, New-

mont dealt with the aftermath of a serious

fire at its Musselwhite mine in Northern

Ontario, and a blockade at its Penasquito

mine in Mexico. Grades at Éléonore, a

mine in Quebec, also disappointed in the

quarter. Goldcorp’s Penasquito gold-silver

mine has been the site of multiple block-

ades this year. Most recently, trucking con-

tractors blocked the site from mid-Sep-

tember to late October after a dispute with

the company. The action during the third

quarter led to a production shortfall at the

mine of 11,000 ounces of gold and 1.7 mil-

lion ounces of silver.

Newmont reported adjusted share earn-

ings of 36 US cents for the third quarter, 3

US cents lower than analysts expected.

Cash flow per share was US$1.03 compared

with US$1.19 that analysts expected. The

miner also cut its production forecast for

the year to 6.3 million ounces of gold ver-

sus 6.5 million ounces previously.

John Tumazos, independent analyst

with Very Independent Research, said in

an interview that despite early bumps with

the acquisition, there are signs it could pay

off over the longer term.

“The setbacks at Musselwhite and Pe-

nasquito are not permanent. They’re just

embarrassing,” he said. “The cost savings

appear to be permanent.”

In a statement on Tuesday, Newmont

ratcheted up the cost savings it expects to

wring from buying Goldcorp to US$240-

million a year from a previous target of

US$145-million.

NEWMONT,B6

Goldcorpmines

weighon

Newmontoutput

asitcutsforecast

NIALLMcGEE

MININGREPORTER

GFL Environmental Inc. is pulling its ini-
tial public offering after institutional in-
vestors pressed the Canadian waste-
management giant to price its shares
below the deal’s marketing range.
The IPO, which launched in mid-Oc-
tober, was expected to raise as much as
US$2.4-billion, with GFL marketing as
many as 100.7 million shares to poten-
tial buyers at US$20 to US$24 each.
However, institutional investors

balked at this range over the past two

weeks and pushed GFL to price its deal

at US$18 a share, partly because of con-

cerns about the company’s debt load.

Instead, GFL says it will scrap the deal

altogether and revisit an IPO in the fu-

ture.

“The [existing] shareholders have

determined that, at US$18, we don’t be-

lieve that represents fair value for the

company, so the shareholders have de-

cided to inject more equity into the

business to fund the future growth of

the company and revisit the public mar-

kets at a later date,” chief executive offi-

cer Patrick Dovigi said in a statement to

The Globe and Mail. GFL’s existing pri-

vate equity backers include BC Partners

and Ontario Teachers’ Pension Plan.

Cancelling the deal will be a major

blow for Canada’s capital markets.

Financing activity has been soft in

2019, and there are some fears that pub-

lic investors are losing the ability to own

stakes in large, quality companies be-

cause private buyers keep acquiring

them at a rapid pace.

GFL,B6

GFLtoscrapIPOplans

afterinvestorsbalkatprice

Waste-managementfirmsoughtshare-rangeof$20to$24butdebtconcernedinvestors

TIMKILADZE

Hootsuite Media Inc.’sfounding chief ex-

ecutive officer, Ryan Holmes, will step

down in the wake of concerns raised by the

company’s board about his leadership after

a failed attempt to sell the social media

management company.

Mr. Holmes will leave the post when a

successor is found but will become the

company’s executive chairman, he wrote

in a note to shareholders on Tuesday. He

started Hootsuite in 2008, and it quickly be-

came a leading platform for managing so-

cial media accounts for corporate clients.

Research firm CB Insights pegged the

company’s valuation at US$1-billion earlier

this decade. The Globe and Mail reported in

January that Hootsuite had been seeking a

buyer but struggled to find offers higher

than US$700-million. The company laid off

about a 10th of its approximately 1,000 em-

ployees this year.

The Vancouver-based company did not

make Mr. Holmes available for an inter-

view. Two sources familiar with the situa-

tion, who were granted confidentiality be-

cause they were not authorized to discuss

the decision, said after the failed auction,

the board began months of tense talks

about whether Mr. Holmes was still the

right leader for the company.

HOOTSUITE,B6

Inashareholderletter,HootsuiteCEORyanHolmessaidhewantedtospendtimewithhisdaughter:‘Itfeels

likeitistherightpointtotakesometimeandreassesspriorities.’CHRISTOPHER KATSAROV/THE GLOBE AND MAIL

Hootsuitefoundertostepdown

Movecomesaftersocialmediamanagementcompany

failstofindabuyer,laysoffemployees

JOSHO’KANE

SEANSILCOFF

TARADESCHAMPS

APPLE ..................................................... B5

BOEING .................................................. B5

NETFLIX .................................................. B5

PELOTON INTERACTIVE .......................... B3

UBER TECHNOLOGIES ............................ B3

WALT DISNEY ......................................... B5

COMPANIES

OPINION

Lowe’sisrepeatingTarget’s

gaffes:KonradYakabuski B4

GLOBEINVESTOR

Itpaystocheckyourpersonal

finances:RobCarrick B10

ECONOMY

TRADEGAPLESS

THANFORECAST B3

[TECHNOLOGY]