The M&E Dispatch // 038

Hello Everyone,

I’m sure many of you watched the inauguration yesterday and you’ve been inundated with updates and summaries. After sleeping on yesterday's statements, I’d like to discuss something specific before today’s news overtakes the conversation.

Drill, baby, drill!

A battle cry of Trump’s campaign for some time now has had many here in Canada excited about the prospect of a resurgence in O&G domestically. However, as many are learning, Trump is not an ally of Canadian O&G producers like many had hoped. When he proclaimed yesterday “Drill, baby, drill!” it was in the context of working towards the US becoming the global leader in O&G production.

He wants them to eliminate, as much as possible, the reliance on foreign energy and become a major global exporter of O&G.

Now as many of you know, they need us. They need our O&G and they’re not just going to stop buying from us, but like our softwood exports it puts us into a predicament.

While we send them crude, we need them for refined products, and we really have no viable alternative. Importing refined fuels from sources other than them is incredibly cost prohibitive. So while they can impose tariffs on Canadian crude to help bolster US production, we’re going to feel that sting twice, once with the eventual decrease in volume and again on the increased cost of the refined product we import.

Much like planting a tree, the best time to start building refineries is 20 years ago. The second best time is today.

Now it’s not all bad, many of you run businesses that are industry adjacent, and this might be a net positive for you. I was chatting on Sunday in Spokane with a guy whose company builds downhole tools specific to returning abandoned/orphaned wells to production. To him, Drill, baby, drill means bringing wells back into production and not actually punching new holes.

I’m curious, where do you stand with all this? How will it affect your company?

// The Dirt

PJX Confirms Sedex Potential at Dewdney Trail
PJX Resources announces drilling success at Dewdney Trail, identifying three promising Sedimentary Exhalative (Sedex) horizons.
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Bayhorse Silver Sends 115m of Core for Assay
Bayhorse Silver submits core samples for analysis and plans geophysical surveys at its Bayhorse Silver Mine.
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Alphamin Reports Record Tin Production
Alphamin Resources celebrates record-breaking tin production for FY2024 and shares optimistic guidance for FY2025.
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Metalero Eyes Benson Copper-Gold Acquisition
Metalero announces a letter of intent to acquire the 166 km² Benson Copper-Gold Property in Central British Columbia.
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Quebec Precious Metals Sells Non-Core Assets
QPM finalizes the sale of mining rights in Ontario, receiving $200,000 and other considerations.
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Wolfden Secures $2.1M from Timberland Sale
Wolfden Resources sells a 3,770-acre timberland parcel for $2.1M in non-dilutive financing.
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Brunswick Kicks Off Winter Drilling Campaign
Brunswick Exploration begins a 5,000m drilling campaign at its Mirage Project in Quebec’s Eeyou Istchee-James Bay region.
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Let’s see what today holds, it’s interesting times for sure and I’m positive we’ll have loads to talk about again on Friday.

One quick note: I received a few requests last week for some info on some companies and their activities– I’m on it, I’ll have an update for you shortly.

Have a good week all,

- Lee