Trudeau Starts 51st State, Musk Uncovers Big Fraud
Equinox and Calibre Merger
Not much economic news this week until Thursday and Friday with inflation data so I will have a market update on that and before then, I will complete my 'Outlook 2025' and send that out.
Finally we get to the truth, bottom of what started Trump's Canada 51st State rhetoric. It was actually caused by the poor and weak leadership of Trudeau.
In an interview with American journalist Catherine Herridge posted to social media on Feb. 21, Marco Rubio, the U.S. Secretary of State said during U.S. President Donald Trump’s first meeting with Trudeau at Mar-a-Lago on Nov. 29, 2024, the prime minister said Canada’s existence would be in question if 25 percent tariffs were imposed on it.
“At which point the president responded, very logically, and that is, ‘well, if you can’t exist without cheating in trade, then you should become a state.’ That was his observation there,” Rubio said.
“That’s how it started?” Herridge asked.
I tell you this Trudeau is an incompetent idiot. How do you expect to successfully negotiate with a trading partner when the first thing you do is show your weakness and admit you would be defeated out of the gate. Trudeau is a lame duck leader and should have never met with Trump in the first place. Was Trudeau begging Trump to go easy?
Nothing Surprises me with Government Corruption.
Elon Musk running DOGE (Dept. of Government Efficiency) is looking into Social Security and the data is unbelievable. He posted a spreadsheet of Social Security Administration data showing "numbers of people in each age bucket with the death field set to FALSE!"
The data shows that 20.789 million Americans are collecting social security benefits over the age of 100. Drilling down into the age buckets, benefits are still being paid out to folks over 140! In fact there was 3.5 million between ages 140 and 149 and over 7,000 older than 170 years.
That is a lot of money and where is it really going, certainly not graveyards, and it is even worse.
One X user pointed out that 2023 data showed the US population at around 334.9 million. However, Musk's data shows 394 million names in the Social Security Administration database.
Musk responded: "Yes, there are FAR more "eligible" social security numbers than there are citizens in the USA. This might be the biggest fraud in history."
For all the turmoil being caused by Trump's draining of the government swamp, some good is going to come out of it. We need the same thing in Canada.
Late Sunday, news was out that Equinox Gold and Calibre Mining will merge together. Both stocks are on our list but I was disappointed because Calibre would have probably had a larger percentage gain this year compared to the merged entity. That said the new combined company will still do very well. Calibre share holders will get 0.31 Equinox shares. The transaction will lower are entry cost on Equinox at $6.07 by about $0.40
Equinox Gold - - TSX/NY: EQX - - Recent Price - $9.45
Calibre Mining - - TSX: CXB, OTCQX: CXBMF - - Recent Price - $2.90
The combined company will continue under the name "Equinox Gold Corp." I suggest Calibre shareholders take the Equinox shares and continue to hold these shares for further gains. At current prices we are up about 56% with Equinox and 78% on Calibre.
Upon completion of the Transaction, existing Equinox shareholders and former Calibre shareholders will own approximately 65% and 35% of the outstanding common shares of the combined company, respectively, on a fully diluted in-the-money basis. The implied market capitalization of the combined company is estimated at C$7.7 billion.
The combined company is expected to produce approximately 950,000 ounces of gold in 20251, not including production from Valentine or Los Filos. New Equinox Gold has the potential to produce more than 1.2 million ounces of gold per year with Greenstone and Valentine operating at capacity. Additionally, the combined company will have a large gold endowment of Mineral Reserves and Mineral Resources, and a highly prospective pipeline of development, expansion and exploration projects for low-risk sustainable growth.
Strategic Rationale of the Transaction:
A major diversified gold producer in the Americas - Potential for more than 1.2 million ounces of annual gold production from a portfolio of mines in five countries in the Americas;
The second largest gold producer in Canada - Greenstone and Valentine, two new long-life, low-cost, open-pit gold mines, are expected to produce collectively 590,000 ounces of gold per year when at capacity;
Substantial free cashflow - Immediate increase in production at record high gold prices drives superior free cash flow to quickly deleverage;
Exceptional growth profile - Additional production growth from the ramp up of Valentine and a pipeline of development and expansion projects;
Significant re-rate potential based on valuation of peers - Greater scale, lower risk, near-term production growth, and superior free cash flow relative to peers, providing significant revaluation potential;
An industry-leading team - Proven track record of delivery and shareholder value creation led by Ross Beaty, and Blayne Johnson and Doug Forster of Featherstone Capital, who will all serve on the Board of Directors of New Equinox Gold.
This is the U.S. price chart to take out the effect of the falling Canadian loonie and you can see the stock is way below it's 2020 high with way lower gold prices then. This is one of the reasons EQX is on my Selection List. We can see a nice rising trend but it is a pretty slow pace considering the gold price rise. The next target and resistance is around $9 and we should easily see that in 2025.
Paid Advertisers at playstocks
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.