Concerns about the health of Turkey’s financial system rattled global markets Friday as the Turkish lira plummeted and U.S. President Donald Trump ratcheted up the pressure by hiking tariffs on steel and aluminum exports from the country.
Corporate Canada isn’t immune from the emerging market currency crisis, with a number of TSX-listed companies exposed to the country. Here’s a look at some of the names to watch.
The Calgary-based oil-and-gas company has several operations in Turkey. Condor’s wholly-owned subsidiary Marsa Turkey BV, has a 100 per cent working interest in two production licenses located on the Gallipoli peninsula in northwest Turkey. It also owns and operates the Poyraz Ridge natural gas field which commenced production in January with approximately 1,600 to 1,700 barrels of oil equivalent per day.
Valeura holds interests in 21 petroleum and natural gas production leases and exploration licences in Turkey and is also testing additional areas in the Thrace Basin area for natural gas for commercial scale operations. The company is fully exposed to Turkey after selling its legacy oil and gas properties in Canada in 2014.
The low-cost gold producer has an 80 per cent interest in the Çöpler mine in Turkey, located 550 kilometers east from Ankara. The mine is expected to produce 110,000 to 130,000 ounces of oxide ore and 50,000 to 100,000 ounces of sulfide ore at all-in sustaining costs of $650 to $700 per ounce this year, the company said on its website. It also has other mining exploration projects in Turkey in various joint ventures with its Turkish partner Lidya Mining.
This mid-tier gold producer wholly owns two gold mines in Turkey, including the open pit Kışladağ operation, the largest gold mine in the country. Eldorado said 2018 production at Kışladağ is expected to be 120,000 to 130,000 ounces of gold at a cash cost of $600 to $700 per ounce. It also runs the Efemçukuru mine in western Turkey that annually produces 90,000 to 100,000 ounces of gold at operating costs of $530 to $570 per ounce.
This intermediate gold producer has three mines under development in Turkey with feasibility studies estimating that the mines can produce anywhere from 93,000 to 177,000 ounces of gold per year and 403,000 to 617,000 ounces of silver per year. Its Kirazli mine, located 800 kilometres west of Ankara, has recently received permits for full-scale production and has proven and probable reserves of 665,000 ounces of gold and 10,078,000 ounces of silver.
First Quantum Minerals
The Toronto-based miner owns the Çayeli mine in northeastern Turkey, an underground copper and zinc operation. The mine, the largest underground base metals operation in the country, produces copper concentrate, copper and zinc bulk concentrate and zinc concentrate. It is expected to operate until 2021.
AGT Food & Ingredients
The Regina-based supplier of pulses and other crops, which recently announced plans to go private, has three facilities in Turkey that help process and refine lentils, chickpeas, peas, beans and canary seed products for the Asian market. Its Turkey operations also run the largest-capacity pasta production line in the world and a large bulgur wheat production facility.