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Marathon Gold sale fires up investors

Calibre Mining (TSX: CXB) has entered into an agreement to acquire Marathon Gold (TSX: MOZ) in a transaction valued at C$345 million. The merger aims to establish an Americas-focused, mid-tier gold-producing company projecting an average annual production of 500 koz of gold from 2025 to 2026.

While the companies tout the news, observers and investors can’t help but express their dismay at the acquisition price the firms have landed at. Investor Don Durrett emphasized that the 32% premium for acquiring Marathon Gold is still “a stunning discount.”

“This happens over and over. The slippery slope of greed. This was not done in the interest of shareholders,” said Durrett.

You can read more on the matter here.

What’s going on?

• Poilievre Accuses Fraser, Trudeau of Paying Off Mayors to Take ‘Credit for Housing that Was Already Going to Be Built’ (theDeepDive)

• Canadian home sales post biggest decline in 16 months in October (Reuters)

• Orsted Exits Multiple Wind Projects Worth Nearly $10 Billion ’ (theDeepDive)

• Trudeau Faces Calls to Exit With His Party Trailing in Polls (Bloomberg)

• US Gas Prices Are Falling Fast, National Average Down 41.3 Cents from A Year Ago (theDeepDive)

• NATO to replace AWACS surveillance jets with modified Boeing 737 (Reuters)

• YouTube Faces Spying Charges In Europe (theDeepDive)

• Ford, LGES Abandon Plans for Massive Battery Plant Citing ‘Current Pace of EV Adoption’ (theDeepDive)

• US lawmakers question Apple over Jon Stewart's China content (Reuters)

• Eramet Focuses On Lithium, Marking $2 Billion Investment (theDeepDive)

What’s the latest?

• Home Sales Slow: Canada's housing market has entered a period of reduced activity earlier than usual, according to the Canadian Real Estate Association. In October, home sales dropped by 5.6% compared to September, with new listings also declining by 2.3%. This slowdown marks the first decrease in new listings since March. The sales volume in October was 17% lower than pre-pandemic levels, with high interest rates being a significant contributing factor.

• US Retail Sales Fall: U.S. retail sales in October experienced their first decline in seven months, dropping by 0.1%. This decrease was mainly due to reduced purchases of motor vehicles and a downturn in spending on hobbies. Despite this decline, the economy doesn't show signs of a recession, as October's sales drop was less than expected and followed three consecutive months of substantial gains.

• British Inflation Drops: In October, British inflation experienced a significant drop, with the annual consumer price inflation plunging to 4.6% from September's 6.7%. This decrease, the lowest in two years, was notably more than expected and has led to increased expectations of Bank of England rate cuts in the coming year. The Office for National Statistics noted that this was the biggest month-to-month decline in inflation since April 1992.

• Sales Climb: In September, Canadian manufacturing sales saw a modest increase of 0.4%, reaching $72.8 billion, primarily driven by higher prices in the petroleum and coal product subsector. Concurrently, wholesale sales, excluding certain commodities like petroleum and grains, increased by 0.4% to $83.1 billion.

• Another Battery Plant: In Maple Ridge, B.C., a new lithium-ion battery cell production plant, costing over $1 billion, is set to be built, as announced by Prime Minister Justin Trudeau and Premier David Eby. This facility, developed by E-One Moli, is part of a joint effort to strengthen Canada's position in clean technology. The project will receive funding of up to $80 million from the province and $970 million from a mix of federal government contributions, E-One Moli, and other private sources.

Ron DeSantis' Height-Boosting Controversy

The stock market and stuff

• WonderFi Acquires 17,000 Client Accounts From Bitvo (theDeepDive)

• ByteDance Weighs Sale of Gaming Studio Behind Mobile Legends (Bloomberg)

• JPMorgan Throws Cold Water On Bitcoin Bull Thesis (theDeepDive)

• Teck Sells Off Coal Unit, With Glencore Taking Majority Stake For US$6.9 Billion (theDeepDive)

In the juniors

• Calibre Mining Acquires Marathon Gold For $345M, But Is It Too Cheap? (theDeepDive)

• Sterling Metals Extends Heimdall North Zone By 200 Metres Following Recent Drilling At Sail Pond (theDeepDive)

• Benjamin Hill Mining Enters LOI For Investment In Thermal Coal Project (theDeepDive)

• ATHA Energy Identifies 145 km of Conductors At East Apex (theDeepDive)

• Skeena Resources Reports After-Tax NPV(5%) Of $2 Billion For Eskay Creek Project (theDeepDive)

FULL DISCLOSURE: Sterling Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Sterling Metals. The author has been compensated to cover Sterling Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.