Oh (no) Canada, Trump Slump and Zonte, ZON

Midnite Sun MMA

Oh No Canada

Good Day savvy investors!

The new Carney Liberal government had the King of England visit Canada and read the throne speech to open a new session of government. It was a brilliant move by the Liberals and is only the 3^rd time in history that a monarch has delivered the speech. It helped cement Canada's sovereignty and highlights Canada's strong support from England. The speech said a lot of the right things, but the big question is what will this Carney government actually do? Can the bird change his feathers?

The challenges are huge and mentioned in the speech “The scale of the government’s initiative will match the challenges of our times and the ambitions of Canadians,” said King Charles.

Carney says there will be no budget until fall but his spending promises far outdone Trudeau's that were very excessive. This will be inflationary. However the speech promised more fiscal discipline compared to before. This was the last theme mentioned in the speech.

The King read that the government’s operating budget would be balanced within three years by “cutting waste, capping the public service, ending duplication, and deploying technology to improve public sector productivity.”

Sounds like the same promises we hear from most governments and they never get even close to delivery of what they say. Opposition comments from the Bloc and Conservatives.

Bloc leader Blanchet questioned why the speech did not focus on U.S. President Donald Trump’s posturing toward Canada, despite the Liberals’ election campaign message being focused around his tariffs and questioning of Canada’s sovereignty. “It just vanished, disappeared,” he said.

“We were looking for that promise and that hope in the speech today. We did see a lot of the right slogans and political talking points, but no clear plans to get it done,” Conservative Leader Pierre Poilievre said.

As I have commented before, lets see what actually happens and gets done. I expect Carney to eliminate GST for new home buyers and carry through with his 1% tax cut on the low income bracket but an awful lot remains to be seen on how they will try and revive the economic disaster from Trudeau. Housing is about 40% of the Canadian economy and my article Tuesday revealed that huge land slide about to happen.

Today there was news out on immigration. In the first three months of 2025, Canada approved 834,010 temporary resident applications and extensions, including study permits, work permits, and visitor visas. These include renewals so we don't have a solid number on new approvals. No matter how you cut it, still way too many given the failed infrastructure in Canada. IRCC has signalled a goal to reduce the temporary resident share to 5% of Canada’s population by 2026. It looks like big numbers again in 2025 and 5% by 2026 is still way too many at about 2 million/year.

Trump Slump

The battle against Trump rages in the courts since the far left lost in the election, they are using the left wing judges to slow Tromp down and with a temporary block on tariffs, he is in a real slump.

This is really a continuation of lawfare. You don't like a Trump policy. You find a district court judge appointed by Obama or Biden and they don't care about stopping the policy, they go for a temporary restraining order (TRO) which can be nationwide in scope and has immediate effect. TROs are often issued with only one side (the plaintiff) being heard. The media plays this up as a big legal breach by Trump, but it is really just the first line, lowest court and is mostly a political ruling, just a legal loop hole. The Trump administration will probably appeal than to the U.S. Circuit Courts that hear appeals from the District Courts. If this fails they can than appeal to the U.S. Supreme Court. It really is a far left policy to delay, delay, delay.

No doubt it is not democratic and will come to an end. The reaction will be an act of Congress that will strip federal district court judges of their ability to issue nationwide TROs, and will require judges’ orders to apply only to the parties in the lawsuit and not to other parties.

However, this court ruling on Trump's tariffs is different. It is from the Court of International Trade, a federal body and consists of nine judges appointed by the president and confirmed by the Senate, similar to how Supreme Court appointments are made. Its origins go back to the Customs Administrative Act of 1890, and it’s designed to settle civil disputes related to customs and tariffs.

Wednesday’s tariff ruling came from a tribunal of three judges that Trump probably expected to be friendly toward his policies. While the chief judge was appointed by Democratic President Barack Obama, the other two members were appointed by Republicans, including one by Trump himself. The bottom line is that this ruling is just a temporary setback for the president and won’t really stop him. It makes things harder for Trump, but falls well short of taking tariffs off the table. Again another delay tactic.

It means that most of Trump's hefty levies - including fentanyl-based ones on Canada, Mexico and China - cannot go into effect, taking away one of his quickest negotiating tools to govern trade. There is a legal work around to this court ruling and eventually the tariffs can be approved by Congress that is Republican controlled. The court ruling was - this is really a Congress jurisdiction not the President. For now tariffs are delayed and it also cuts off another source of government revenue.

And add on that government simply cannot shake it's over spending problem as Elon Musk was no match for the entrenched federal bureaucracy. He caused some short term panic, but without Congressional backing, the campaign went nowhere.

It is now looking like the promise of the Trump administration is effectively shattered. Elon Musk is now out of the picture; his efforts to cut waste and inefficiency produced trivial results. The ‘Trade War’ was called off only a week after Liberation Day and now with the court ruling, all tariffs halted.

However, Trump’s Big, Beautiful Budget Bill conceded that spending and the build-up of debt will continue much as before. The budget is still running two trillion dollars in the hole each year.

The bill has to pass the Senate yet but, Can you say 'stagflation' !!!!!!!!!!!!!

Excess government spending just adds up more inflation and higher interest rates. Canada is doing the same.

Zonte announced another huge gravity anomaly and the stock is at almost 2 year lows.

Zonte Metals - - TSXV:ZON, OTC:EREPF - - - Recent Price - $0.045

The last time I suggested a strong buy was back in 2023 when the stock slumped to 4 cents with the Flow Through Funds dumping their flow through shares. Even at a 50% loss they are still even or ahead after taxes. The same thing is happening again. The 6.5 cent flow through funding closed in late December 2024, so became free trading by May.

Today ZON reported the discovery of a large gravity anomaly at the N Dunns target and the extension of the Dunns Mountain gravity anomaly, on its Cross Hills Copper Project in Newfoundland

Terry Christopher, President and CEO, commented: “The N Dunns gravity survey was completed over the previously identified magnetic anomaly at N Dunns. The newly discovered gravity anomaly measures 3300m along strike, up to 650m wide, up to 1000m thick and is open along strike to the NW. The anomaly is spatially coincident with previously completed copper-in-soils over the area, and sits parallel to and crosscuts an interpreted large fault. The new survey data also has allowed additional processing of the previously collected Dunns Mountain target gravity data. Most of the early drilling by the Company was completed at Dunns Mountain, where values in drill core up to 14% Cu, 15.8 g/tr Au and 352 g/t Ag over 0.43m were recorded. Interpretation of the new processing of the Dunns Mountain gravity data suggests that the anomaly extends much farther north than previously known. Additional exploration, including additional gravity is required at both N Dunns and Dunns Mountain targets. ”

Cross-section of the N Dunns and Dunns Mountain gravity anomalies, looking east. (0.3 – 0.6 g/cc).

The N Dunns target was discovered during a helicopter magnetic airborne survey in January 2021. The anomaly has seen limited exploration since that time, except for a first pass soil program and minimal prospecting.

The additional gravity survey and processing has expanded the previously known gravity anomaly to the north by 600m and is much larger than the first anomaly discovered at this location. Additional gravity data is required to close off the anomaly, hence the exact size is not yet established.

Zonte is working on an alternative to this flow through financing that always ends up selling. This could mean the last chance to but at these low prices. The last time the stock was this low, it bounced back 100% and this go around we have an improving junior market and a wedge pattern on the chart. Typically you see an upward break out from this pattern

Don't chase the stock, stick with bids at $0.04 or $0.045 and let these flow through funds sell to you.

Midnight Sun Mining - - TSXV:MMA - - - Recent Price - $0.64

Entry Price $0.27 - - - - - - Opinion – hold, buy on break out

MMA entered into an earn-in and operating agreement with Zambezi Mint Investment Ltd. regarding the 366-square-kilometre Luswishi Dome project, located approximately 40 kilometres southeast of the company's Solwezi project in Zambia.

Al Fabbro, Midnight Sun's president and chief executive officer, stated: "The presence of domal structures has long been recognized as a hallmark of major copper discoveries in the region, and it is exactly what led us to our Solwezi project over a decade ago. This same geological feature underpins the world-class deposits and operating mines surrounding us, including Barrick's Lumwana mine, First Quantum's Kansanshi and Sentinel mines, and Ivanhoe's Kamoa-Kakula -- all excellent examples of world-class domes deposits.

"So, when Midnight Sun had the rare opportunity to secure what may be the last remaining dome in the district not already controlled by a major or us, we moved quickly. The project boasts not only a highly prospective geological setting but also an exceptional historical data package from previous operators.”

The earn-in agreement consists of three stages:

• Stage 1: To earn an initial 51-per-cent ownership of the licence, Midnight Sun must complete $750,000 worth of exploration and development expenditures on the licence within 24 months of the agreement date.

• Stage 2: To earn an additional 19 per cent (70-per-cent cumulative ownership) of the licence, Midnight Sun can sole finance a National Instrument 43-101-compliant inferred mineral resource within 24 months of the completion of Stage 1.

• Stage 3: To earn an additional 10 per cent (80-per-cent cumulative ownership) of the licence, Midnight Sun can sole finance a prefeasibility study within 36 months of the completion of Stage 2.

This is an excellent acquisition for MMA. The stock is sitting at the cross roads now and we could see the next move up as drilling is starting at the Kazhiba Target 2 sulphide target and we get closer to drill results announced.

On the chart, the stock has broken to the upside from a wedge pattern and needs to make a higher high to confirm a new up trend. A close at $0.74 or better would do that.

All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author's control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.