BMO Equity Research IN Tune

In this short (16 min) podcast, we discuss the key recent changes we have made to our EV sales forecasts and battery assumptions, and the resulting impacts on various upstream battery metals including lithium, nickel, cobalt, graphite, and others.BMO clients can view our reports, "Raise EV Targets Higher and Update Key Assumptions to Varying Upstream Effect", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/abe03309-3d6b-432e-8507-3ebf507894eb/ and "Changing Some EV and Lithium Assumptions, Though Conclusions Remain Same" by visiting: https://researchglobal0.bmocapitalmarkets.com/research/65f1a666-1549-4b11-9c93-009328f5f574/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/0E975775-C5A2-487E-9B85-98EBA70158BA.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

BMO clients can view our report, “Best of BMO Q322” by visiting: https://researchglobal0.bmocapitalmarkets.com/research/e165cee3-dced-46c4-942a-df8e116962ae/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/DD9845C9-AE86-457A-93FE-7D24B4201212.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

With agricultural related GHG emissions accounting for about quarter of global emissions, conversations around the role of farming in carbon and emissions management are intensifying. This includes the capacity of soil to sequester carbon by growers transitioning to farming practices such as no-till and cover cropping. Governments are starting to incentivize such transitions, and numerous food and crop input producer pilot programs to track on-farm sustainability practices have emerged. In this podcast, Joel Jackson, Chemicals and Fertilizer Analyst at BMO Capital Markets, discusses the key findings from his recent research report, which concludes that while many hope no-till farming and cover cropping could prove a benefit to growers to monetize sustainability practices and lower emissions, they may prove to be a burden unless government and food industry incentives materially increase and broaden. Even with government incentives and promises of CPG industry incentives, BMO estimates a 5- to 10- year payback for a farmer transitioning to no-till and cover cropping. Upfront equipment switching costs are sizable, there are yield penalties in initial years, and material annual cover crop seed costs. Plus, future outcomes are blurry - carbon monitoring is imprecise, carbon sequestration seems lower than projected and variable year to year, there’s carbon re-emissions potential from natural occurrences or if practices are abandoned, carbon marketplaces are immature, and government policies are unclear.Episode transcript: xxxTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

BMO Capital Markets’ Group Head, Dan Barclay, moderates a discussion on the takeaways from BMO’s 17th Annual Farm to Market Conference across the food and agriculture value chain.Joel Jackson, Chemicals and Fertilizer Analyst, discusses his views on where we are in the ag cycle, the supply constraints on fertilizers, and the impacts of the invasion in Ukraine on his coverage of fertilizer companies.Ken Zaslow, Food and Agribusiness Analyst, takes the listener on a deep dive into how inflation is impacting his covered companies and the sector.Doug Morrow, Head of ESG Strategy, delves into the corporate value proposition of ESG, the implications of food insecurity, and how ag and food production contributes to climate change.Together, Dan and the three analysts take a deep dive into the core themes of BMO’s 17th Annual Farm to Market Conference.Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/4533B7E0-00AC-44FD-9DFC-DA01F656F0D9.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

Oil & Gas Thematic Analyst Jared Dziuba discusses the BMO Energy Research Team’s latest IN Front report: “Outer Limits: Exploring the Cost (Opportunity) of Canada’s Net Zero Pathways.’” We engage in a comprehensive discussion about the potential cost of the Canadian oil industry’s net zero ambitions as it relates to carbon abatement technology deployment, and its implications on the financial health of producers and shareholders.Jared emphasizes that Canada’s oil sands producers are uniquely positioned to execute on net zero ambitions given global leadership in R&D and deployment of technology including Carbon Capture, Use, and/or Sequestration (CCUS), and that while the costs are high, they are well within the free cash flow generating capacity of producers without impeding on planned growth in cash returns to shareholders. Despite this, he also explains why industry critics are irresponsible to suggest that the industry bear the full burden of costs associated with these large-scale, capital-intensive net-zero technologies aimed at achieving collective social goals despite ongoing consumer demand for oil products, given the consequence of severe erosion of shareholder returns, as well as deterioration of investor confidence and competitiveness in global energy markets. Finally, Jared points out that the ‘Pathways’ alliance among the top six oil sands producers is actively fortifying action plans, and that a pending announcement of government CCUS tax incentives may provide a catalyst to finally convert ambition to action.BMO clients can view our report, “The Outer Limits: Exploring the Cost (Opportunity) of Canada’s Net Zero Pathways”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/a9cb3724-ad43-43ee-989f-d0fa90dc2345/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/2248C879-B470-4BCC-BDD6-2EC77CAA6FC1.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

The Best of BMO is our quarterly compilation of our broad macro views, as well as our best stock ideas for the next 12 months. Essentially, it is an equity idea book. In this episode, we are joined by six of our analysts to delve into the details of their Best of BMO stock pick. Joining the podcast are Randy Ollenberger, Oil and Gas analyst; Jackie Przybylowski, Metals and Mining analyst; Fadi Chamoun, Transportation analyst; Peter Sklar, Consumer analyst; Tom MacKinnon, Insurance analyst; and Thanos Moschopoulos, Technology analyst.BMO clients can view our report, “Best of BMO Q1/22”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/00aecbce-aee1-4393-aad0-98005f4d7a8a/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/C13527E3-9954-43C7-9EB6-7357049918E9.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

In this short (10 min) Metal Matters podcast, we discuss feedback from BMO’s Global Metals & Mining Conference, how supply disruptions can result in demand destruction and the turbulence in the LME nickel market.Episode transcript: research-ca.bmocapitalmarkets.com/documents/CC8ED4F0-7D47-4B21-82BE-A766225F7AEB.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

Plant-based meat was taking off and becoming a part of the consumer's diet. Then, COVID-19 hit and changed the growth trajectory. In this episode, we address 1) what happened?; 2) will plant-based meat have the same success as plant-based milk?; 3) what does the plant-based meat industry need to do to regain its footing and growth; and 4) what key adjustments and strategies are required to adapt to the new normal?Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/4AAC6D9E-536E-40FB-871E-F3FED3FFD378.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

2021 turned out to be a great year for oil and gas investors. Randy Ollenberger and Ray Kwan think that 2022 has the potential to be equally good as a multi-year bull market for energy takes hold. This podcast covers their outlooks for oil and gas prices, heavy oil differentials as well as the impact inflation and M&A can have on the associated equities. In short, Randy and Ray believe that the recent European energy crisis’ impact on commodity prices and current concerns about the potential lack of spare oil production capacity may provide a glimpse of things to come following years of underinvestment, tightening environmental expectations and shifting shareholder demands. The North American oil and gas group is in its strongest financial position in the last 15-years and poised to generate record levels of free cash flow that we believe will be largely distributed to shareholders. Randy and Ray do not believe these factors are adequately reflected in market valuations.Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/FDE37153-0F60-4992-97F2-205936F892EB.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

As we get ready for IFRS 17, effective January 1, 2023, for Canadian, European, and Asian insurers, investors need to understand how it will reflect drivers of value, and, most importantly, what further analysis and perhaps potential adjustments to reported items are relevant in an IFRS 17 world. This podcast discusses the key differences between IFRS 17 and the current IFRS 4, and, more importantly, highlights the need to look beyond just IFRS 17 reported earnings, BV, and ROE in assessing shareholder value and shareholder value creation.BMO clients can view our report, “Analyzing Drivers of Value in an IFRS 17 World”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/27a9e2c7-ecda-4cad-be42-3042fd29b651/Episode transcript: research-ca.bmocapitalmarkets.com/documents/CE188984-9604-43C1-A1AE-3722C6EDC740.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/