Canada's natural resources sector continues to be challenged by demand along with bad government policies.

1. Canada Natural Resources –
Analysis and Commentary
PAUL YOUNG CPA CGA
SEPTEMBER 23, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 GDP, employment, and key commodity prices
 4th Qrtr – Canada
 Oil Rigs and Oil Prices – May 2020
 GDP and Natural Resources
 Additional Training
 Government Policies
 Stock Market and Commodity Prices
 Gerald Butts and Oil
 Justin Trudeau and Resourcefulness
 Wages
 Lithium / Blog
 Clean Energy Raw Materials and Electrical Vehicles

4. GDP, Employment, and Key Commodity Prices

5. GDP, Employment, and Key Commodity Prices

6. Natural Resources /
Canada
Source -
https://www150.statcan.gc.ca
/n1/daily-
quotidien/200923/dq200923
a-eng.htm

7. Oil Prices and Oil Rigs Oil Links -
https://www.slideshare.net/paulyoungcga/
oil-and-gas-sector-whats-happening-
outlook-2020-and-beyond

8. Forestry Sector / Sawmills

9. GDP
GDP by Sector – Source – Stats Canada

10. Natural Resources Sector
 Forestry - https://www.baytoday.ca/coronavirus-covid-19-local-news/canadian-forestry-industry-bracing-for-
brutal-2020-2270373
 Metal Mining- https://www.osler.com/en/resources/regulations/2020/covid-19-s-impact-on-mining
 Vanadium, Lithium and Rare Metals - https://www.spglobal.com/marketintelligence/en/news-insights/latest-
news-headlines/quebec-lithium-mine-s-bankruptcy-flags-canadian-market-obstacles-analysts-say-58533815
or https://www.slideshare.net/paulyoungcga/clean-technology-and-green-economy-canada
 Canada Smelting – smelting/fabrication - https://www.newswire.ca/news-releases/canadians-want-to-seize-
opportunity-in-critical-minerals-847674353.html
 LNG/Natural Gas - https://www.northernsentinel.com/news/despite-covid-19-lng-canada-committed-to-first-
cargo-delivery-by-mid-2020/

11. Government Policies / Legislation
 Anti-pipelines - https://www.cbc.ca/news/canada/british-columbia/pipeline-capacity-poll-1.4979805 or
https://www.nationalobserver.com/2019/01/04/news/pipeline-shortfall-not-only-thing-punishing-canadian-
oilpatch
 Rail shipments and Goods - https://www.cbc.ca/news/politics/tasker-crude-by-rail-eight-fold-increase-1.4842410
 C69 - https://openparliament.ca/bills/42-1/C-69/ “An Act to enact the Impact Assessment Act and the
Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential
amendments to other Act”
 Carbon Taxation - https://www.cbc.ca/news/canada/north/yukon-chamber-mines-carbon-tax-1.4691472
 All levels of government across Canada have made changes to both taxation and regulatory policies
Source - https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2017

12. Stock Market and Commodity Prices

13. Gerald Butts and Oil
• Butts did not support Northern
Gateway or East-West
• Keystone stumbling block was Obama
which he did not say in his interviews
• Butts brought in the failed FIT
Policy -
https://www.cbc.ca/news/opinion/
ontario-disaster-architects-
1.3884108
• Butts tweets have been anti-oil
and pro-climate change
• https://ottawasun.com/opinion/let
ters/you-said-it-whats-the-
carbon-tax-problem

14. Justin Trudeau and Natural Resources
 https://www.cbc.ca/news/politics/trudeau-davos-future-look-economy-harper-1.3412182
 https://business.financialpost.com/business/energy/varcoe-oilpatch-in-rebellion-as-ottawa-plows-ahead-on-
bill-c-69/wcm/e5e15cab-b220-45f3-a29a-
ca7290dfa272?utm_medium=Social&utm_source=Facebook&fbclid=IwAR2vsjIYWtPsq0eaNYt-
11WYJhMy80fRWQQD6MNV3b30ISA1u0cNzenCxk8#Echobox=1560516484
 “My predecessor wanted you to know Canada for its resources," Trudeau reminded. "I want you to know
Canadians for our resourcefulness."
 Trudeau misled people back in 2016 about the importance of Natural Resources development was to Canada.
 https://www.slideshare.net/paulyoungcga/2019-election-management-of-natural-resources-canada-june-
2019
 FYI
 It is never about jobs, but votes!

15. Wages

16. Power Production / Utility Sector
Source -
https://www.slideshare.net/paulyoungcga/electricit
y-generation-co2-and-environmental-impact-
whats-next

17. Minister of Natural
Resources / O’Regan
 https://www.slideshare.net/paulyoungcga/canada-
natural-resources-sector-whats-next
@SeamusORegan natural resources were sliding late in
2019 which you and your govt said little, why?
@VictorFedeli @Swiftie01 @GasPriceWizard
@emilia_suze @WBrettWilson
@ShannonStubbsMP
Canada needs a new strategy for Natural Resources!
• Canada oil is one the more environmentally friendly
and ethical produced oil in the world -
https://www.slideshare.net/paulyoungcga/policy-
and-market-analysis-oil-and-gas
• Oil still plays a vital role with the world economy -
https://www.slideshare.net/paulyoungcga/whats-
next-for-oil-and-gas-july-2020
• O’Regan does not seem to apply the same rules to
imported oil from other countries -
https://www.weforum.org/agenda/2020/07/scientists
-concerned-by-record-high-global-methane-
emissions/

18. Clean Energy Raw Materials and EV
Batteries
Dias said Canadian natural resources, such as lithium, aluminum, and cobalt, put the members in a strong position as more
companies move toward electric vehicles.
https://www.canadianmanufacturing.com/manufacturing/ford-canada-unifor-reach-tentative-deal-that-includes-2b-in-ev-
contracts-261000/
You must be able to develop natural resources and get them to market which has not happen under @JustinTrudeau
1. Lithium bankruptcy - https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/quebec-
lithium-mine-s-bankruptcy-flags-canadian-market-obstacles-analysts-say-58533815
2. Chromite development delayed - http://blog.norontresources.com/
3. Development of Vanadium - https://www.vanadiumcorp.com/news/industry/the-restart-to-canadas-economy-must-
think-big-and-be-green/
4. Rare metals - https://www.saskatchewan.ca/government/news-and-media/2020/august/27/ree-facility
5. Regulations - https://im-mining.com/2020/03/01/stantec-warns-miners-prepared-new-canadian-federal-mdmer-
legislation-mining-effluent/
6. Taxation and competitiveness (carbon tax, small business reforms, and other policies) -
https://financialpost.com/executive/posthaste-canada-slips-again-in-latest-ranking-of-worlds-most-competitive-
economies-and-why-bruce-linton-sees-disintegration-in-cannabis-sector

19. Training and Development
 If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
 These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies

20. Corporate Taxation
Here is what I told a Liberal?
You appear to be anti-business as such likely will not read my posts, but will take the NDP at their word when it comes to taxation, right?
 Corporation pay carbon tax, excise taxes, payroll taxes, royalties, corporate income tax - https://www.slideshare.net/paulyoungcga/how-corporate-and-business-taxation-flows-to-
government
 Mutual funds and pension funds invest in corporations - https://www.investopedia.com/university/mutualfunds/mutualfunds.asp
 Top 1% - https://www.slideshare.net/paulyoungcga/2019-election-top-1-wealthiest-canada-june-2019
 Many corporations do not get direct business subsidies - https://www.investopedia.com/articles/basics/11/introduction-to-government-subsidies.asp (Direct subsidies are loans,
grants, etc.)
 Tax deductions are not subsidies. Corporations have to qualified for tax deductions - https://taxfoundation.org/corporate-tax-rates-around-world-2018/ - Countries need to be
competitive with all their tax, environmental and other government policies.
 There are rules around income movement it is called transfer pricing. The rules have change based on BEPS - https://www.osler.com/en/resources/regulations/2018/canada-begins-
ratification-process-for-multilateral-tax-convention-to-implement-beps
 You want to fixed income taxation then go after the tax code - https://www.brookings.edu/research/a-golden-opportunity-to-simplify-the-tax-system-options-for-reforming-a-
complex-tax-code/
 Governments around the world need to go after tax havens - https://medium.com/@nslewis/tax-havens-make-gdp-screwy-c241430447d9 - Liberals refused to go after tax havens as
the panama papers have shown there are liberals with holdings in tax havens - https://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers-1.4382511
 Trudeau and Morneau have trust funds. Maybe it is time to go after trust funds - https://www.advisor.ca/tax/tax-news/cra-to-demand-more-info-on-trusts-beginning-in-2021/
 Clean technology gets direct subsidies and you do not mention that issue, why? https://business.financialpost.com/commodities/energy/total-destruction-of-the-market-investments-
in-clean-tech-cool-off-as-subsidies-ends - I guess you are ok with subsidizing power under the FIT agreement - https://torontosun.com/news/provincial/ontario-lost-up-to-1-2-
billion-selling-clean-energy-at-a-loss-engineers
 Many # companies are just an easy way for people to set up a small business. Small business has already told the Liberals their tax policies are harming them, and you say nothing,
why? https://www.slideshare.net/paulyoungcga/small-business-under-attack-by-government-canada

21. Lithi
um
Blog
https://www.nextbigfuture.com/2020/06/south-korea-makes-progress-to-lithium-oxygen-batteries-with-ten-times-higher-energy-
densities.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
Briefing
Researchers have presented a novel electrode material for advanced energy storage device that is directly charged with oxygen from the air. Professor Jeung Ku Kang’s
team synthesized and preserved the sub-nanometric particles of atomic cluster sizes at high mass loadings within metal-organic frameworks (MOF) by controlling the
behavior of reactants at the molecular level. This new strategy ensures high performance for lithium-oxygen batteries, acclaimed as a next-generation energy storage
technology and widely used in electric vehicles.
 Top 10 mining countries - https://investingnews.com/daily/resource-investing/battery-metals-investing/lithium-investing/top-lithium-producers/ -NB- China has
two of the top mining companies.
 Australia and Chile lead the world in the production of lithium - https://investingnews.com/daily/resource-investing/battery-metals-investing/lithium-
investing/lithium-producing-countries/. Australia hosts the Greenbushes lithium asset, which is operated by Talison Lithium, a subsidiary jointly owned by miners
Tianqi Lithium (SZSE:002466) and Albemarle (NYSE:ALB). Greenbushes is the longest continuously operating mining area in Western Australia, having been in
operation for over 25 years.
 Canada is seeing a rise in junior lithium miners - https://www.mining.com/canadian-lithium-junior-surges-45-after-460m-injection/
 You cannot have clean technology without lithium and other products - https://www.slideshare.net/paulyoungcga/canada-clean-technolgy-and-the-green-
economy
 Lithium is very toxic as such there needs to be a recycling program - https://cen.acs.org/materials/energy-storage/time-serious-recycling-lithium/97/i28
 World needs to develop better extracting and mining practices as part of saving both the land and water - https://www.dw.com/en/lithium-extraction-for-e-
mobility-robs-chilean-communities-of-water/a-51844854
 Tesla relies heavily on lithium - https://www.forbes.com/sites/arielcohen/2020/12/30/teslas-new-lithium-ion-patent-brings-company-closer-to-promised-1-million-
mile-battery/#6dcb937033e3
 China controls allot of clean technology metals like lithium - https://www.utilitydive.com/news/beating-china-at-the-lithium-game-can-the-us-secure-supplies-to-
meet-its/572307/
 Top lithium battery startups - https://tracxn.com/d/trending-themes/Startups-in-Lithium-Ion-Batteries
 Canadian companies find traction with lithium technology- https://www.theguardian.pe.ca/business/regional-business/canadian-lithium-tech-companies-find-
traction-amid-rise-of-electric-cars-357175/

22. What needs to
happen
 Trudeau team needs to get the softwood lumber dispute
resolved and look at ways to expand lumber exports to CETA
and TPP -
https://www.bnnbloomberg.ca/economics/video/overall-impact-
of-softwood-lumber-dispute-minimal-for-canada-
economist~1108540
 Trudeau’s team has too many radicals that are putting their own
interest over what is best for Canada. NR development will lag
until there is change in government
 There lacks integrated strategy between all levels of government
to get projects off the ground
 Canada needs to revisit its taxation and regulatory policies /
Covid19 -
https://www.slideshare.net/paulyoungcga/transforming-the-
economy-postcovid19-canada-and-the-world
 More emphasis on the skill trades and engineering area as part
of supporting the natural resources sector. -
https://www.slideshare.net/paulyoungcga/human-capital-skills-
trades-and-skills-development
 Better partnering with NR companies as part of leaving a legacy
around for communities, i.e. roads, housing, water, etc.
 https://www.slideshare.net/paulyoungcga/what-is-going-
on-with-canadas-competitiveness