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Vatican Faces Bankruptcy Amid Declining Donations

The Vatican, often seen as an emblem of spiritual and material wealth, is facing a financial crisis. A dramatic decline in global donations and escalating operational costs have brought the Holy See close to insolvency. With an $87 million operating deficit reported in 2023—a figure growing annually—the Vatican’s financial future hangs in the balance. This crisis is sparking widespread concern among clergy, employees, and the broader Catholic community.

The Vatican’s finances, historically supported by donations, investments, and tourism, have seen a stark downturn in recent years. Annual contributions from the faithful—known as Peter’s Pence—have plummeted, leaving a gaping hole in the church’s budget. This shortfall coincides with increasing demands on resources, including pension obligations for thousands of retired clergy and staff worldwide.

You can read more on the matter here.

What’s going on?

• California Declares Emergency Over Bird Flu in Dairy Cattle (theDeepDive)

• Tariff threats cast a shadow over U.S. reliance on Canada for majority of its oil imports (Globe)

• Substack Faces Backlash Over Deal With The Free Press (theDeepDive)

• Big Lots Faces Liquidation Risk on Unpaid Rent, Inventory Value (Bloomberg)

• Nigeria Busts International Fraud Ring Operating From Lagos Tower, Arrests Nearly 800 People (theDeepDive)

• Luigi Mangione agrees to extradition to New York in UnitedHealthcare CEO murder case (CNBC)

• Two million people are expected to leave the country in Canada's immigration reset. What if they don't? (FP)

• Federal Reserve Cuts Interest Rates 25 Bps, Signals Cautious Optimism (theDeepDive)

• November Home Sales Post Biggest Annual Gain Since 2021 (WSJ)

• Canadian Western Bank’s Profit Drops 17% As Provisions for Credit Losses Spike Over 400% (theDeepDive)

• Bill Gates invests in Montreal company looking to remove CO2 from air (FP)

What’s the latest?

• BOC: The Bank of England held its interest rate at 4.75% as inflation rose to 2.6%, exceeding its 2% target, amidst economic stagnation. Three out of nine policymakers voted for a rate cut, signaling potential reductions in February if inflation stabilizes. The U.K. economy contracted for two consecutive months, and heightened uncertainty persists following the government’s budget and U.S. election outcomes.

• Canada Post: Canada Post resumed operations after a month-long strike, with mail delays expected into the new year due to backlog. Processing is prioritized on a first-in, first-out basis, with new international mail accepted starting December 23. Over 55,000 workers were ordered back by the Canada Industrial Relations Board as negotiations stalled. An industrial inquiry commission will recommend solutions by May 15, with contracts extended to May 22.

• Volkswagen: Volkswagen Group will invest C$69 million ($48.1 million) for a 9.9% stake in Patriot Battery Metals, securing 100,000 metric tons of lithium over 10 years. This represents 25% of the first phase of production from Patriot's Quebec project, supplying Volkswagen's North American and European battery plants. The investment comes amid slowing EV sales and falling lithium prices, which have led miners to scale back projects. Patriot previously sold a 4.9% stake to lithium giant Albermarle.

• Lion Electric: Lion Electric Co. has received creditor protection under the Companies' Creditors Arrangement Act (CCAA) in Canada and plans to seek U.S. recognition under Chapter 15. Deloitte Restructuring Inc. has been appointed to oversee restructuring, and the court has approved a sale and investment solicitation process. Lion Electric defaulted on its debt and temporarily laid off 400 employees, halting production at its Illinois plant.

• Vermilion Energy: Vermilion Energy Inc. announced a 2025 capital spending plan of $600M-$625M and raised its quarterly dividend to 13 cents per share, up from 12 cents. The budget focuses on drilling and infrastructure, including B.C. Montney operations and European gas development. Expected 2025 production is 84,000-88,000 barrels of oil equivalent per day, a 2% increase from 2024 guidance.

From meme coin hysteria to mining's next bull run w/ Doug Casey

The stock market and stuff

• Japan’s Nippon Steel, Sojitz Take 49% Equity In Champion Iron to Advance Kami Project (theDeepDive)

• US stocks rebound from worst sell-off since August (FT)

• Self-proclaimed bitcoin inventor in contempt of court over $1.2 trillion UK lawsuit (Reuters)

• Franco-Nevada Acquires Gold, Platinum Stream From Sibanye-Stillwater (theDeepDive)

In the juniors

• Canadian Copper Targets H1 2025 For Release Of PEA On Murray Brook (theDeepDive)

• Independence Gold Provides Update on Winter Drill Program at the 3Ts Project, BC (JMN)

• Fission Uranium Receives Federal Approval For Paladin Energy Transaction (theDeepDive)

FULL DISCLOSURE: Golden Cariboo Resources is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is long the equity of Golden Cariboo Resources. The author has been compensated to cover Golden Cariboo Resources 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.