Sponsored by Cytophage Technologies

Taxpayers May Shoulder Trans Mountain Losses

Canada’s acquisition and expansion of the Trans Mountain Pipeline (TMC) in 2018 has long sparked controversy over its financial feasibility. With the expansion officially operational as of May 1, 2024, new analysis from the Parliamentary Budget Office suggests that the project’s sale may lead to considerable taxpayer losses.

Despite significant federal investment and the project’s completion, the profitability of divesting the pipeline hinges on multiple unpredictable factors, including contract renewals, toll models, fluctuating oil demands, and Canada’s changing climate policies.

You can read more on the matter here.

What’s going on?

• Montreal Port Lockout Arrives, Sparks Fears of Food Shortages (theDeepDive)

• Trump Is Likely to Exempt Canadian Energy From Tariffs, Wilbur Ross Says (BNN)

• Mali Detains Mining Executives Amid Growing Hostility Toward Foreign Firms (theDeepDive)

• Global Warming Is Already on the Cusp of 1.5C, New Research Finds (Bloomberg)

• OpenAI’s ‘Orion’ Model Shows Diminishing Returns —Report (theDeepDive)

• One-quarter of Canadians say immigrants should give up customs: poll (NP)

• Rising Renewals Could Trigger Wave of Home Listings in 2025 (theDeepDive)

• Ottawa disputes ArriveCan contractor’s claims in response to lawsuit (Globe)

• Germany Looks To Modernize Military Recruitment But Stops Short of Conscription (theDeepDive)

• How much does Canada owe in climate aid? A trillion-dollar question headlines COP29 (BNN)

• Saudi Arabia Weighs $100 Billion AI Investment Plan, Sources Say (theDeepDive)

• Canadians across the country mark Remembrance Day (Globe)

• Australia Proposes Ban on Social Media for Under-16s (theDeepDive)

• KFC sues Church's over 'Original Recipe' fried chicken ads (Reuters)

What’s the latest?

• OpenAI: OpenAI’s upcoming Orion model shows less notable performance gains than prior advancements, according to internal tests. While outperforming current models, Orion's improvements in coding capabilities are inconsistent. OpenAI is addressing training data limitations with synthetic data and optimized post-training methods, though operational costs for Orion are expected to be higher. The company confirmed there’s no plan to release Orion this year.

• Barrick Gold: Barrick Gold Corp. has lagged behind major gold miners this year despite record bullion prices, with shares stagnant as output consistently misses targets for 11 quarters. Ongoing issues include high costs, production challenges, and political risks, particularly at Nevada and African mines. Major investors like Blackrock have reduced stakes, shifting to rivals Agnico Eagle and Newmont. CEO Mark Bristow notes Barrick’s focus on restructuring and diversifying into copper but acknowledges production setbacks will likely persist into 2025.

• Tesla: Hedge funds shorting Tesla lost an estimated $5.2 billion since Donald Trump's election win, as Tesla shares soared nearly 30% amid Elon Musk’s support for the president-elect. Hedge funds have rapidly reduced their short positions from 17% in July to 7% by November. Musk’s endorsement of Trump and his potential role in a Trump administration have driven optimism in Tesla’s stock, with some analysts estimating the “Trump effect” accounts for about a third of Tesla’s share price increase.

• Space: Voyager 2's 1986 observations of Uranus occurred during a rare solar wind event, which reduced Uranus' magnetosphere to about 20% of its usual size, resulting in misleading data on its magnetic environment. This solar wind condition occurs only 4% of the time, and researchers believe the magnetosphere likely resembles those of Jupiter, Saturn, and Neptune under normal conditions. The study also suggests that Uranus' largest moons, Titania and Oberon, stay within the magnetosphere more often than previously thought, increasing the potential for detecting subsurface oceans.

• Crypto: The FTX estate has sued Binance and former CEO Changpeng Zhao, seeking to reclaim $1.76 billion from a "fraudulent" 2021 share deal in which Binance exited its FTX investment. The estate claims the buyout was funded by FTX's insolvent Alameda Research, making it a "fraudulent transfer." Binance denies these allegations, and the lawsuit adds that Zhao’s tweets about liquidating FTX tokens led to a withdrawal surge, contributing to FTX’s collapse.

Cytophage might have the solution to McDonald's E. coli crisis

The stock market and stuff

• Bell Q3 Earnings: Massive Impairments. Guidance Cuts. A Mess. (theDeepDive)

• Euro hits lowest in 6-1/2 months vs dollar on tariff anxieties (Reuters)

• Bitcoin Mining’s Reality Check: When a Coin Costs More Than It’s Worth (theDeepDive)

In the juniors

• Freegold Hits 1.23 g/t gold Over 170.7 Metres At Golden Summit (theDeepDive)

• American Eagle Gold Sees South32 Take 19.9% Interest In Company For $29 Million (theDeepDive)

• Power Nickel Intersects 3.82% Copper Equivalent Over 19.6 Metres At Lion Zone (theDeepDive)

• Plurilock Lands $5.4 Million Contract With Canadian Law Enforcement Agency (theDeepDive)

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