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January 4, 2025

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Block and Loaded: Targeting Gains in SQ

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As digital payments and fintech services continue to reshape the global economy, Block, Inc. (SQ) stands out as a potential beneficiary of this shift. A favorable technical signal and an attractive fundamental backdrop present a compelling bullish thesis for SQ. In this article, we will explore the reasons behind this positive outlook and discuss a strategy you can use to capitalize on it — all identified instantly through the OptionsPlay Strategy Center on StockCharts.com.

Technical Analysis

A closer look at SQ’s chart reveals several bullish indicators:

  • Breakout and Retest of Support. After breaking above the $84 resistance area in November, SQ has since come back to retest this level as support.
  • Strong Risk/Reward Setup. The successful retest suggests a favorable risk/reward, where the downside risk is far more limited than the upside potential to our upside target of $150.

FIGURE 1. SQ STOCK DAILY CHART. The stock is retesting its $84 area as support.Chart source: StockCharts.com. For educational purposes.

Fundamental Analysis

From a fundamental perspective, SQ’s outlook remains promising:

  • Attractive Valuation. Despite Block’s strong growth prospects, the company is currently trading at a 30% discount relative to its peers.
  • Robust Growth Metrics. SQ’s expected 44% earnings per share (EPS) growth is nearly three times higher than its peers’ 13%, highlighting the company’s potential for earnings expansion. Projected 11% revenue growth outstrips the industry median of 7%, confirming the company’s ability to expand its top line.
  • Recent Earnings Insights. Block’s Q3 2024 results showed robust growth in gross profit and a significant turnaround in net income, fueled by the strength of its Cash App and Square ecosystems. While there were some concerns around revenue shortfalls and ongoing regulatory scrutiny of Cash App, the company remains optimistic about continued margin expansion into 2025, forecasting at least 15% overall gross profit growth and new initiatives to drive further gains.

These fundamentals suggest that SQ is well-positioned to capitalize on the continued rise of digital payments, offering investors a potentially rewarding opportunity at current valuations.

Options Strategy

To leverage SQ’s bullish outlook, the OptionsPlay Strategy Center suggests selling the Feb 14 $86/80 Bull Put Spread @ $2.30 Credit.

This entails the following:

  • Sell: February 14, 2025, $86 Put at $4.60
  • Buy: February 14, 2025, $80 Put at $2.30
  • Net Credit: $2.30 per share ($230 total per contract)

FIGURE 2. DETAILS OF A PUT VERTICAL SPREAD IN SQ STOCK.

Trade Details

  • Maximum Potential Reward: $230
  • Maximum Potential Risk: $370
  • Breakeven Point: $83.70 (strike of the sold put minus the net credit per share)
  • Probability of Profit: ~56.46% (if SQ closes above $83.70 by February 14, 2025)

By selling a higher strike put and buying a lower strike put, you collect a premium upfront and benefit if SQ stays above the breakeven price at expiration. This strategy offers a balanced approach to potential upside while containing risk.

Unlock Real-Time Trade Ideas With OptionsPlay Strategy Center

This bullish setup in SQ was identified almost instantly using the OptionsPlay Strategy Center at StockCharts.com. By running a Bullish Trend Following scan, the platform highlighted SQ and structured the optimal options trade without the need for extensive research or guesswork.

FIGURE 3. THE BULLISH TREND FOLLOWING SCAN HIGHLIGHTED SQ AS A POTENTIAL OPTIONS TRADING CANDIDATE.

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  • Automated Market Scans. Quickly spot the best trading opportunities aligned with your market outlook.
  • Optimal Trade Structuring. Leverage data-driven tools to craft high-probability, risk-defined strategies.
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Don’t let valuable opportunities slip away. Subscribe to the OptionsPlay Strategy Center today, and elevate your trading with the guidance and clarity you need to make informed decisions. Find the best options trades swiftly, every single day, and empower your investing journey with this cutting-edge tool.

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These 3 Charts Are Among The Most Critical To Start 2025

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Obviously, there will be many ups and downs in 2025 and no one chart or indicator can be relied upon 100% to help guide us throughout the year. But some key and very influential areas of the market do meet crossroads from time to time and it seems like one very important industry group is “on the clock” and should really garner our attention right now.

Regional Banks

While I don’t look for market-beating returns out of regional banks (KRE) to feel good about a secular bull market, I really do want to see them participate in market advances. If we look back at the last 5 years, the KRE has been a serious laggard, but its relative strength vs. the benchmark S&P 500 has shown some life since July 2024, at the time that the June Core PPI was released. Wall Street immediately moved into regional banks in droves as the likely fed funds rate cuts ahead would directly increase profits significantly for all banks, but especially small to mid size banks. But will this newfound strength continue? Well, let’s look at the key levels using 3 different time frames.

Weekly

The big picture has clearly been improving, which bodes well for 2025. However, we don’t want to begin to see cracks in the house foundation turn into a collapsing house. I like the recovery this week after testing key price support around 59. But a drop below 59 could lead to a lower channel line support test, closer to 53. That would be another 10% drop, which wouldn’t be good. Let’s move to the next chart:

Daily

This is an interesting chart. The channel lines don’t connect perfectly, especially the lower uptrend line, but it’s close. Furthermore, the KRE printed a double bottom at 59, almost squarely on gap support that was created by the 2024 Presidential Election results. In order to feel more bullish about this chart, I’d like to see the KRE move higher and clear both the declining 20-day EMA and recent price resistance at about 61.50. For a final look at the KRE, check this out.

Hourly

This is the crack in the foundation. While absolute price support has held and we now show a potential double bottom, relative action tells us a different story as the KRE has moved to another relative low on this hourly chart. Which way will the KRE bounce? If it can clear its current consolidation range by closing above 61.50, the odds of a bullish reversal improve considerably and will likely spill over into the daily and weekly charts above. On the other hand, should the KRE turn lower again and fail to hold 58.80 price support, the hourly breakdown could lead to daily, and then weekly, breakdowns as well.

Market Vision 2025

Regional banks is just one key industry group to watch early in 2025. I see a few others that I’ll be discussing tomorrow at our MarketVision 2025 event, “The Year of Diverging Returns”, which begins at 10:00am ET. To learn more about the event and to register, please CLICK HERE.

Happy trading!

Tom

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Stock Market Ends the Week Strong: Could It Spark a Bullish January?

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Has it been a while since the broader market indexes closed in the green? It certainly seems that way.

After what looked like a weak start to the new year, the stock market showed us it still had legs. The week’s trading day ended with the broader stock market indexes all closing in the green. But in the first half hour of the trading day, things didn’t look great. There was a lot of choppy movement, but it settled down and went higher and finished strong. Nine of the 11 S&P sectors closed higher with Consumer Discretionary at the top (more on that below).

Friday was the last day of the Santa Claus Rally. While Santa skipped Wall St. this year, Friday’s price action in the S&P 500 ($SPX) left investors optimistic. The S&P 500 was able to hold on to its November lows (see the daily chart of S&P 500 below), which is an encouraging sign. But we’re not out of the woods yet.

FIGURE 1. S&P 500 HOLDS ABOVE NOVEMBER LOWS. Friday’s price action was encouraging but increasing breadth would be more confirming of a turnaround.Chart source: StockCharts.com. For educational purposes.

Thursday’s price action was nerve-wracking — there was a time when the index was trading below its November lows. Fortunately, it recovered and closed a little above it. Friday’s close was encouraging, with the S&P 500 gaining 1.26%, hitting resistance at its 50-day simple moving average (SMA). But the market breadth indicators in the lower panels need to be stronger. The S&P 500 Bullish Percent Index is at 41, the NYSE Advance-Decline Line is declining, and the percentage of S&P 500 stocks trading above their 200-day moving average is 56.

Friday’s MarketCarpet based on the performance of the S&P 500 shows that heavy-weighted large caps such as NVIDIA Corp. (NVDA), Microsoft Corp. (MSFT), Alphabet Inc. (GOOG and GOOGL), Meta Platforms (META), and Tesla Inc. (TSLA) ended the day higher.

FIGURE 2. MARKETCARPET FOR JANUARY 3. Most of the higher market cap stocks closed higher on Friday.Image source: StockCharts.com. For educational purposes.

TSLA had a massive move rising 8.10% closing the gap between December 31 and January 2. TSLA is a stock to monitor, especially since it has a deep connection with the new administration set to take office on January 20. The stock bounced on Friday after five down days.

NVDA’s stock price also had an impressive rally on Friday after consolidating since early November. These two stocks, TSLA and NVDA, helped the Consumer Discretionary and Technology sectors take the top two positions in Friday’s sector performance.

Overall, Friday’s price action was a ray of hope that perhaps the January Barometer  — as the S&P 500 goes in January, so goes the year — might be the one out of the trifecta that can come through. The January Barometer was devised by Yale Hirsch and has an 83.3% accuracy rate.

Steel, Beer, and Used Cars

While many tech stocks saw big gains, it wasn’t the same for US Steel Group (X). President Biden blocked the takeover of the company by Nippon Steel, resulting in a 6.53% drop in the price of X.

Alcoholic beverage companies didn’t have a great day either after US Surgeon General, Vivek Murthy, said alcoholic drinks should include cancer risk warnings on their labels. Shares of Anheuser-Busch InBev (BUD), Molson Coors Brewing Co. (TAP), Boston Beer Co. (SAM), and Constellation Brands (STZ) all fell on Friday.

Shares of Carvana (CVNA) fell over 11% after Hindenberg Research accused the company of accounting manipulation. Although Carvana denied the allegations and the stock received an upgrade from J.P. Morgan analysts, it didn’t help lift the stock price. CVNA’s stock price fell 17.53% (see chart below).

FIGURE 3. WEEKLY CHART OF CVNA STOCK. Two sets of Fibonacci retracement levels are drawn on the chart, one from a previous high to low (blue) and another from a more recent low to high (red).Chart source: StockCharts.com. For educational purposes.

Carvana had a high StockCharts Technical Rank (SCTR) score, and we’ve covered the stock in our past SCTR Reports. Once the SCTR score fell below the 90 level on December 23, it raised a red flag. Combine that with a break below the 61.8% Fibonacci retracement from a previous high to low (blue line) and a relative strength index below 70 and you have a clear sell signal.

It will be interesting to see how this story develops. If things clear up and CVNA can show that it didn’t engage in accounting manipulations, the stock price could turn around and rise quickly.

Yields, US Dollar, Oil

The bond market had a choppy day. The 10-year yield closed at 4.596%, which hurt bond prices. The US dollar surged on Thursday but pulled back a bit on Friday. The chart of the Invesco DB US Dollar Index Bullish Fund (UUP) displays that Friday’s price action was within Thursday’s range. There’s no sign of a weakness in the US dollar, which continues to remain strong.

FIGURE 4. DAILY CHART OF INVESCO DB US DOLLAR INDEX BULLISH FUND. The dollar has been rising steadily since October.Chart source: StockCharts.com. For educational purposes.

Crude oil prices rose today. The United States Oil Fund (USO) was up 1.83% on Thursday and up 1.29% on Friday. Oil prices have been going sideways since October but recent price action shows that it may be breaking out of its slump.

For a short trading week, that’s a lot of moving parts. Although stocks closed higher on Friday, there’s still not enough clarity on the charts to show a reversal. Next week could tell a different story.

End-of-Week Wrap-Up

  • S&P 500 down 0.48% for the week, at 5942.47, Dow Jones Industrial Average down 0.60% for the week at 42,732.13; Nasdaq Composite down 0.51% for the week at 19,621.68
  • $VIX up 1.13% for the week, closing at 16.13
  • Best performing sector for the week: Energy
  • Worst performing sector for the week: Materials
  • Top 5 Large Cap SCTR stocks: Applovin Corp. (APP); Palantir Technologies (PLTR); Reddit Inc. (RDDT); Astera Labs, Inc. (ALAB); MicroStrategy Inc. (MSTR)

On the Radar Next Week

  • December PMI
  • November Factory Orders
  • November JOLTS Report
  • December ISM Services
  • December Non-Farm Payrolls
  • FOMC Minutes
  • Fed speeches from Cook, Barkin, Schmid, and Bowman

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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These Riskier Areas Start the New Year RALLY!

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In this video, Mary Ellen analyzes the divergence between the S&P 500 and the Nasdaq while highlighting some of the areas driving Growth stocks. She also talks about the continuation rally in Energy and Utility stocks and shares which stocks are driving these areas higher.

This video originally premiered January 3, 2025. You can watch it on our dedicated page for Mary Ellen’s videos.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

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How to Trade Erratic Uptrends – An Example and Setup using IWM

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The Russell 2000 ETF managed a double-digit gain in 2024, but did it the hard way with several deep pullbacks. Pullbacks within uptrends are opportunities and we can find such opportunities using %B.

The chart below shows the Russell 2000 ETF (IWM) with the Zigzag(8) indicator. This indicator changes direction when there is a move greater than 8%, which means it ignores price moves that are less than 8%. I am showing this indicator to highlight five pullbacks of 8% or more in 2024. That’s a lot. In contrast, the S&P 500 SPDR (SPY) only experienced one 8+ percent pullback in early August.

Overall, IWM advanced 10% in 2024. That seems like a good year, but it was a “hard” 10% when we include the five 8+ percent pullbacks. This is simply the nature of small-cap stocks. They are less “trendy” than large-caps and have higher betas, making them more susceptible to wider fluctuations. Traders need to consider this when trading small-caps. As noted in Chart Trader this week, we see similar price action in the S&P 500 EW ETF (RSP) and S&P MidCap 400 SPDR (MDY).

Click here to take Chart Trader trial and get immediate access.

Buying upside breakouts is probably not the best strategy for trading IWM. Instead, traders should consider pullbacks and mean-reversion opportunities. We can identify such opportunities using Bollinger Bands (20,2) and %B (20,2). The middle line on the Bollinger Bands is the 20-day SMA and the bands are two standard deviations above and below. A close below the lower band means price fell two standard deviations and this creates an oversold condition.

Chartists can quantify oversold conditions using %B, which falls below 0 when the close is below the lower Bollinger Band. The blue lines on the chart above show %B dipping below 0 four times in 2024. Note that I would also only look for oversold conditions when price is above the 200-day SMA (long-term uptrend). When the bigger trend is up, a close below the lower Bollinger Band signals an oversold condition that can lead to a bounce.

December was a rough month for many stocks and ETFs. Even so, the weight of the evidence remains bullish for stocks and these pullbacks look like corrections within bigger uptrends. This week’s reports and videos focused on long-term breadth indicators, short-term oversold breadth, leading ETFs and a dozen ETFs with tradable pullbacks.

Click here to take a Chart Trader trial and get immediate access.

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Cameco Faces Uranium Production Halt at JV Inkai Following Regulatory Delay

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Cameco (TSX:CCO,NYSE:CCJ) said on Thursday (January 2) that it has learned of a production halt at JV Inkai.

Kazatomprom (LSE:KAP,OTC Pink:NATKY), the company’s partner at the site, said JV Inkai was unable to obtain an extension for submitting updated Uranium Deposit Development documentation.

The extension wasn’t received due to a delay in submitting required documents to Kazakhstan’s Ministry of Energy.

The suspension at JV Inkai took effect on Wednesday (January 1).

Kazatomprom, which holds a 60 percent stake in the joint venture, instructed JV Inkai to prepare for the suspension to ensure compliance with local legislation. Cameco holds the remaining 40 percent interest.

According to Cameco, the delay in regulatory approval was unexpected.

The company reported that as late as December 26, communications from Kazatomprom and JV Inkai suggested the process to update documentation was proceeding without issues, with no indication that production might be at risk.

The formal notification of the suspension arrived on Tuesday (December 31), just one day before operations ceased.

Cameco expressed concern over the lack of prior warning, emphasizing that the suspension could affect uranium production volumes and financial returns in 2025 and 2026. The firm is currently seeking clarification from Kazatomprom regarding the circumstances that led to the regulatory delay and potential pathways to resume operations.

Cameco is also evaluating operational and financial impacts. The company noted that dividends from JV Inkai, which contribute to Cameco’s overall profitability, may be affected depending on the duration of the production halt.

The uranium miner acknowledged the possibility of prolonged regulatory delays, citing complex legal frameworks and potential amendments to resource use contracts in Kazakhstan. Cameco’s ongoing risk assessment will focus on mitigating impacts to shareholders, while maintaining compliance with Kazakh regulations.

Kazakhstan is currently the world’s largest uranium producer, and JV Inkai is a key supplier within the sector.

JV Inkai operates one of Kazakhstan’s most significant uranium deposits, contributing to Cameco’s global portfolio.

The suspension marks the first major disruption at JV Inkai since the joint venture’s establishment.

Cameco reassured stakeholders that it remains focused on supporting JV Inkai and Kazatomprom in navigating the regulatory process to ensure a timely return to production.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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5 Experts Share Highest-Conviction Sectors for 2025

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To kick it off, our team asked five experts to share their highest-conviction sectors. Here’s what they had to say.

1. Rick Rule — Gold stocks for speculators, oil/gas for investors

Rick Rule of Rule Investment Media gave options for both speculators and investors when he answered the question, emphasizing that people should know which category they fall into.

2. Gareth Soloway — Gold

Gareth Soloway of VerifiedInvesting.com chose gold, saying he thinks it will be 2025’s best-performing asset due to a wide variety of factors, including concerning warning signs from the US stock market.

3. Lobo Tiggre — Copper

Copper is at the top of the list for Lobo Tiggre of IndepedentSpeculator.com, although he did consider silver as well.

Watch to see why he ultimately went with the red metal.

4. David Morgan — Energy

David Morgan of the Morgan Report is best known for his silver commentary, but when asked about his highest-conviction sector for 2025 he went in another direction, saying energy is the most important.

5. Frank Holmes — Data centers

Frank Homes of US Global Investors (NASDAQ:GROW) made a similar point, saying that energy demand from the fast-growing artificial sector will make data centers important to watch.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Zodiac Gold Announces Closing of First Tranche of Non-Brokered Private Placement

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Zodiac Gold Inc. (TSXV: ZAU) (‘Zodiac Gold’ or the ‘Company’), a West-African gold exploration company, is pleased to announce that, further to the Company’s news release dated November 20, 2024, it has closed its first tranche of its previously announced private placement (the ‘Offering’) for gross proceeds of approximately C$123,000 (the ‘First Tranche’). The net proceeds of the First Tranche will be used for exploration of the Company’s Todi gold project and for working capital purposes.

Pursuant to the First Tranche closing of the Offering, the Company issued 1,230,000 units of the Company (each a ‘Unit‘) at a price of C$0.10 per Unit. Each Unit consists of one common share of the Company (each, a ‘Common Share‘) and one common share purchase warrant (a ‘Warrant‘). Each Warrant will entitle the holder thereof to acquire one additional Common Share (a ‘Warrant Share‘) at a price of C$0.15 per Warrant Share until the date which is 24 months following the closing date of the First Tranche of the Offering.

The Company paid finder’s fees to certain finders, consisting of a cash fee of C$1,400 and 10,400 finder warrants (the ‘Finder Warrants‘) pursuant to the First Tranche. Each Finder Warrant entitles the holder to acquire one Common Share at a price of C$0.15 per share for a period of 24 months from the date of issuance.

All securities issued pursuant to the First Tranche closing of the Offering, including Common Shares issuable upon the exercise of Warrants, are and will be subject to a hold period of four months and one day after the date of closing of the First Tranche of the Offering.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ‘U.S. Securities Act‘), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

The Company also announces that it has received TSX Venture Exchange (‘TSXV’) approval to extend the closing of the Offering until January 30, 2025. The Company expects to close the balance of the Offering on or before January 30, 2025.

Insider Participation

An insider participated in the Offering and subscribed for an aggregate of 100,000 Units for a total of approximately C$10,000. Such participation is considered to be a ‘related party transaction’ as defined under the policies of the TSXV and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (‘MI 61-101’). The Company has relied on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related-party transactions under sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101, as the fair market value (as determined under MI 61-101) of the Units acquired by the insider and the consideration paid by such insider does not exceed 25% of the Company’s market capitalization. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Offering, which the Company deems reasonable in the circumstances in order to complete the Offering in an expeditious manner.

Shares for Debt Settlement

In addition, the Company intends to settle an aggregate of C$166,425.30 owing to certain Director and service providers of the Company, including David Kol (Director and Chief Executive Officer), by issuing a total of 1,664,253 Common Shares to them at a price of C$0.10 per share. The amounts owing represent unpaid fees for services and expenses previously provided to the Company, as well as cash advances that have been previously provided to the Company to fund certain short-term working capital expenditures. The Company is proposing to complete these settlements to preserve cash to fund future operations. The disinterested members of the Company’s board of directors believe that the debt settlements are in the best interests of the Company and have unanimously approved them. Completion of the debt settlements is subject to the receipt of all necessary TSXV approvals.

Because insiders will be participating in the debt settlement, it is considered to be a ‘related party transaction’ as defined under the policies of the TSXV and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (‘MI 61-101’). The Company is relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related-party transactions under sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101, as neither the fair market value of the Common Shares to be issued to the participating insiders nor the consideration received from them exceeds 25% of the Company’s market capitalization.

About Zodiac Gold

Zodiac Gold Inc. (TSXV: ZAU) is a West-African gold exploration company focused on its flagship Todi Project situated in Liberia-an underexplored, politically stable, mining-friendly jurisdiction hosting several large-scale gold deposits. Strategically positioned along the fertile Todi Shear Zone, Zodiac Gold is developing a district-scale gold opportunity covering a vast 2,316 km2 land package. The project has undergone de-risking, showcasing proven gold occurrences at both surface and depth, with five drill-ready targets and high-grade gold intercepts.

For further information, please visit the Zodiac Gold website at www.zodiac-gold.com or contact:

David Kol
President & CEO
info@zodiac-gold.com

Forward-Looking Information

This news release includes certain ‘forward-looking statements’ within the meaning of Canadian securities legislation.

Forward-looking statements include predictions, projections, and forecasts and are often, but not always, identified by the use of words such as ‘seek’, ‘anticipate’, ‘believe’, ‘plan’, ‘estimate’, ‘forecast’, ‘expect’, ‘potential’, ‘project’, ‘target’, ‘schedule’, ‘budget’ and ‘intend’ and statements that an event or result ‘may’, ‘will’, ‘should’, ‘could’ or ‘might’ occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Company’s planned exploration programs and drill programs and potential significance of results are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company’s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital, and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials, and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events, or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate, and accordingly readers are cautioned not to place undue reliance on forward-looking statements.

The securities described herein have not been, and will not be, registered under the United States Securities Act, or any state securities laws, and accordingly may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235988

News Provided by Newsfile via QuoteMedia

This post appeared first on investingnews.com

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Cygnus Metals and Doré Copper Complete Merger, Plan 2025 Drill Program at Chibougamau

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Cygnus Metals and Doré Copper Mining said on Wednesday (January 1) that they have completed their merger.

The combined entity will be a critical minerals explorer and developer with two core assets in Québec, Canada.

Cygnus acquired all of the issued and outstanding common shares of Doré on Tuesday (December 31) through a Canadian statutory plan of arrangement, finalizing the deal. Cygnus shares are listed on the ASX under the symbol CY5, and are expected to start trading on the TSXV under the symbol CYG on or about Friday (January 3).

The company has also applied to list on the OTCQB under the ticker symbol CYGGF.

The merger of equals between Cygnus and Doré was announced this past October, with the companies emphasizing at the time that the deal would create value for shareholders on both sides. Under the agreement, each former Doré shareholder will receive 1.8297 Cygnus shares for each share they held before the transaction was finalised.

‘By combining the proven exploration and management skills of the Cygnus team with the high-grade resource and immense upside at the Chibougamau Copper-Gold Project, we have the potential to unlock substantial value,’ Cygnus Executive Chair David Southam said at the time, adding that plans for ‘aggressive exploration’ were in the works.

The new company’s two main assets are the Chibougamau copper-gold project and the James Bay lithium project.

Chibougamau currently has a measured and indicated resource of 3.6 million metric tons at 3 percent copper equivalent, and an inferred resource of 7.2 million metric tons at 3.8 percent copper equivalent.

James Bay’s Pontax project holds a resource of 10.1 million metric tons at 1.04 percent lithium oxide.

Doré brought the Chibougamau asset to the table, and in Wednesday’s release former President and CEO Ernest Mast said the Cygnus team has the ability to maximize the value of the project.

“This merger will provide the funding, additional expertise and the strategy aimed at generating superior shareholder returns with an exciting exploration program at Chibougamau,” he noted.

Southam will now act as executive chair of the new company, while Mast will hold the position of president and managing director in Canada. The board will also have two non-executive directors from each of the merged companies.

Cygnus said that results from a pre-Christmas drill program at Chibougamau are expected to be released early this quarter. Following on from that, the company will begin a drilling and geophysics program at the site.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Copper Price Forecast: Top Trends for Copper in 2025

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Copper prices saw impressive gains in 2024, even breaking the US$5 per pound mark in May. However, the red metal’s gains didn’t last, and by the end of the year copper had retreated back to the US$4 range.

The start of 2025 could be eventful, with Donald Trump returning to the Oval Office, a new stimulus package coming into effect in China and a continued push for greener technologies around the world.

What will these factors mean for copper prices in the new year? Will they rise, or can investors expect the base metal to remain rangebound? Here’s a look at what experts see coming for the important commodity.

How will Trump’s presidency impact US copper projects?

Trump will be sworn in for his second term as US president on January 20.

During his campaign, he made bold promises that could shake up the American resource sector, pushing a ‘drill, baby, drill’ mantra and committing to increasing oil production in the country.

When it comes to copper, Trump’s proposed changes to environmental regulations could have key implications. While the Biden administration has sought to toughen these rules, Trump will look to relax them.

“The former president has already pledged to overturn a 20 year moratorium on mining in Northern Minnesota. This pro-mining approach means more mines could be permitted and put into production,” she said.

One project that was being planned before the Biden administration restricted access to federal lands in the Superior National Forest belongs to Twin Metals Minnesota, a subsidiary of Antofagasta (LSE:ANTO,OTC Pink:ANFGF). The company has been working to advance its underground copper, nickel, cobalt and platinum-metals group project since 2006, and has submitted plans to state and federal regulatory agencies.

Another copper-focused project that may benefit from the incoming Trump administration is Northern Dynasty Minerals’ (TSX:NDM,NYSEAMERICAN:NAK) controversial Pebble project in Alaska.

The company has been exploring the Bristol Bay region since acquiring the property in 2001, but the US Army Corps of Engineers denied approval in 2020; the Environmental Protection Agency did the same in 2021.

Northern Dynasty has been fighting these decisions at both the state and federal level. It reached the Supreme Court in January 2024, but was denied a hearing until the dispute is examined at the state level.

On December 20, Alaska Governor Mike Dunleavy added his support for the project when he petitioned the incoming president to issue an Alaska-specific executive order on his first day in office. The order would effectively reverse decisions made by the Biden administration, including the permitting of the Pebble project.

In addition to Pebble, projects like Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) Resolution, and Hudbay Minerals’ (TSX:HBM,NYSE:HBM) Copper World, both of which are in Arizona, may benefit from Trump’s plan to reduce permitting times on projects worth over US$1 billion.

Currently, large-scale operations like these can take up to 20 years to move from exploration to production in the US. Copper is considered a critical mineral for the energy transition, and is increasingly becoming a security concern as the US is largely dependent on China for its supply of copper.

Copper price volatility expected under Trump tariff turmoil

As tensions continue to grow between the west and eastern nations like China and Russia, it may not take much to threaten markets for critical materials, including copper.

Trump has already promised to impose a 60 percent tariff on all goods coming from China.

A tariff on copper imports could upend the president-elect’s plans for the resource sector. It would increase the prices of copper imports and disrupt the overall economy.

“The risk is that the president-elect’s threatened tariffs, including 60 percent on China and 20 percent on all other nations, could derail global economic growth, lead to higher inflation and, with that, tighten monetary policy and also lead to a change in trade flows. Copper will suffer if demand takes a hit,’ Joannides said.

‘In addition, there is likely to be continued volatility in prices,” she added.

In its recent analysis of Trump’s policies, ING sees an overall negative impact on global metals demand.

The firm believes that many of his plans, including tariffs, will cause the US Federal Reserve take a longer-term approach to reducing interest rates, which could affect investment in large-scale copper projects.

S&P Global expressed a similar view after Trump’s win. Immediately after the election, copper prices sank 4 percent to fall under US$4.30, with the firm suggesting that is likely just the beginning. The organization notes that while the market may have already priced in Trump’s tariffs, a larger trade war could impact prices even further.

Economic recovery in China could further boost copper prices

China’s faltering economy has been a major headwind for copper over the past several years.

The country’s housing market accounts for roughly 30 percent of global demand for the red metal, meaning that any shifts could have significant implications for the copper market.

The sector has been struggling for the past few years as the country deals with economic issues, including fallout from the COVID-19 pandemic, which caused disruptions to supply chains and a spike in unemployment.

Ultimately, economic factors struck China’s real estate sector, an important driver of the country’s gross domestic product; this caused the collapse of the nation’s top two developers, China Evergrande Group and Country Garden.

So far, the government’s attempts to stimulate the economy and jumpstart the beleaguered real estate sector have largely failed. In September, it announced measures aimed at property buyers, such as reducing interest rates for existing mortgages by 50 points and cutting the minimum downpayment requirement for homes to 15 percent.

Other changes introduced at the time include more help from the People’s Bank of China, which will provide a lending facility for state-owned firms to acquire unsold flats for affordable housing.

China followed this up with an announcement in November that it will provide additional support for local governments by increasing their debt-raising capacity by 6 trillion yuan over the next six years.

While these measures may not be felt for some time, kickstarting the Asian nation’s real estate sector could be a boon for copper producers and investors.

“If the Chinese real estate market were to post a recovery, this would see domestic demand for copper tick higher and could lead to a tighter supply and demand balance overall assuming all other things remain unchanged. This would underpin even higher prices than we are currently projecting,” said Joannides.

Copper industry needs more investment dollars

With copper demand projected to grow long term, supply-side concerns are rising. According to Joannides, there is already recognition that copper exploration has been underinvested over the past few years.

‘Technology will likely help increase the chance of discovery, and broadly I would say that policymakers are now more supportive of mineral exploration as the push to secure critical raw materials supply has moved up the agenda.’

Joannides pointed to greenfield projects already in the pipeline, including Capstone Copper’s (TSX:CS,OTC Pink:CSCCF) Santo Domingo in Chile, Southern Copper’s (NYSE:SCCO) Tia Maria in Peru and Teck Resources’ (TSX:TECK.A,TECK.B,NYSE:TECK) Zarfanal in Peru.

There’s also Northmet, a Teck and Glencore (LSE:GLEN,OTC Pink:GLCNF) joint venture in Minnesota.

Rising copper prices could also increase the flow of money from the major companies into the junior space, where most of the exploration is currently occurring.

“Copper has become the standout strategic preference for the major mining companies. The risk-adjusted cost of developing organic copper assets is higher than the cost of acquiring them,” Joannides said.

This kind of acquisition activity could help reduce the development time of assets compared to companies starting exploration from scratch.

Investor takeaway

While copper supply and demand conditions are expected to remain tight in 2025, competing forces are at play.

One of the biggest factors is Trump’s return to the White House. If the president-elect takes action as quickly as he has promised, investors could soon gain insight on the long-term implications of his policies.

In terms of China, it will take time to get the property sector back to where it was before the pandemic; however, there may be sparks early in the year as new measures start to work their way through the market.

During 2025 it may be even more prudent than usual for investors to do their due diligence on copper and keep an eye on the forces that may affect the market.

Securities Disclosure: I, Dean Belder, hold shares of Northern Dynasty Minerals.

This post appeared first on investingnews.com

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