On August 28, 2008, the Trimark Canadian Resources Fund posted its 2008 semi-annual management report of fund performance for the period ending June 30, 2008 on SEDAR.com
The following are a few excerpts regarding a few resource stocks:
“Enerflex Systems Income Fund, Talisman Energy Inc., Kinross Gold Corp. and Calfrac Well Services Ltd. were strong contributors to Fund performance in the period. Enerflex, an energy services company, is benefiting from a substantially increased order backlog, including large orders from international customers. This is helping the company diversify its revenue base. Shares of Kinross rose on the continued strength of gold prices. Additionally, company management is refocusing Kinross’s efforts by selling off some of its higher-cost, non-core assets. This has made its cost structure more competitive with its peers. Calfrac, an oil and gas drilling services company, rose on expected future demand for the company’s services as drilling efforts increase.
Norbord Inc., IAMGOLD Corp., Marathon Oil Corp. and Inmet Mining Corp. were the largest individual detractors from Fund performance. Norbord’s share price fell on concerns related to weakness in the U.S. housing market. IAMGOLD’s results were depressed as a result of higher energy costs and political unrest in a region where one of the company’s growth assets is located. Marathon Oil’s share price declined as a result of a year-over-year drop in the company’s refining margins. Inmet’s share price declined as copper, zinc and gold prices fell, and on delays in bringing a new Spanish mine into production. Inmet has a strong balance sheet and management team, and has an attractive growth profile. The portfolio manager believes the valuations of these quality businesses have declined to very attractive levels relative to their long-term values. As such, he added to each of the Fund’s positions in these companies over the period.
Cameco Corp., Sherritt International Corp., Domtar Corp. and FNX Mining Co. Inc. were examples of new purchases that met the Fund’s investment criteria. Franco-Nevada Corp., Barrick Gold Corp. and Chemtrade Logistics Income Fund were sold.”
The Trimark Canadian Resources Fund is managed by Rory Ronan. 
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Last update : 27-11-2008 08:30
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