Canexus Corp. (TSE:CUS), a Canadian chemical maker, slumped to the lowest in four weeks after increasing construction cost estimates at a North American Terminal Operation (NATO) unit train project, and having its price target lowered at National Bank Financial.
Shares fell to C$4.65, the lowest intraday price since June 6, and were trading at C$4.69, down 6.9 percent, at 3:12 p.m. in Toronto.
The total estimated cost at the unit train project has been revised to $350 million to $360 million, from the cost estimate of $315 million announced in January, the Calgary, Alberta-based company said in a statement late yesterday.
Canexus said the planned shutdown of the unit train operation began on June 17 and that construction to further increase unit train loading capacity and connect it to the Cold Lake pipeline system continues to progress.
The company said it expects to start-up and begin commissioning the expanded capacity in late August. To date, approximately $290 million has been spent on the unit train project.
Also yesterday, the company named R. Douglas Wonnacott, a seasoned executive, as its president and chief executive officer and a director of the company, effective immediately.
Meanwhile, equities researchers at National Bank Financial lowered their price target on of Canexus to C$4.25 from C$4.50 in a research report issued yesterday.
The firm currently has an “underperform” rating on the stock.
National Bank Financial’s target price points to a potential downside of 16 percent from the stock’s previous close.
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries.