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We have managed to survive Groundhog Day, noise about Trump Tariffs, and DeepSeek nonsense, but volatility remains. February is, historically, one of the weaker months for stocks, even more pronounced in the first year of a presidential term. Market conditions tend to improve in the following months, with the potential for a spring-into-summer rally.
Canadian markets took a sharp hit on Monday after the 25% Trump Tariffs were announced on the weekend. Things improved quickly as a thirty-day deferral was agreed, but it was a week of seeking safety. The Canadian dollar extended its decline since November, reaching its lowest level in nearly 22 years. This ongoing uncertainty weighs on the market, and further volatility is expected. Investors should consider opportunities to deploy cash, particularly in gold and materials stocks, which were among the few sectors in positive territory as gold prices neared record highs.
Even the U.S. markets dipped on Monday but had a rocky recovery through the week. Big Tech stocks delivered poorer-than-expected revenue and earnings results, raising concerns about the artificial intelligence (AI) hype. Is this a sign the AI boom may be running out of steam? The Magnificent Seven can really sway the index, making for a bumpy ride later this year. The U.S. economy remains resilient, with steady employment and sustained consumer spending. The Federal Reserve is maintaining interest rates until the second quarter, keeping the U.S. dollar robust regardless of the President's stance.
At the start of the year, gold broke out of a three-month consolidation and has since set multiple new all-time highs, nearing USD $2,900/oz. This surge comes despite a strong U.S. dollar since election day. With minimal additional buying, gold could gain momentum and push past the USD $3,000 mark. As of this morning, spot gold is trading at a record USD$2,861/oz. The rationale for the ongoing gold rush is that there is a run on physical bullion. China never stopped buying, they slowed but are now re-accelerating. Swiss banks raised their 12-month gold forecast to USD$3,000 per ounce on Thursday, as the spot price has already overshot its prior prediction of USD$2,850 per ounce. The TSX Global Gold Index (Senior Producers) is up almost 25 % this year; maybe the miners are catching up. The Junior Explorer heavy TSX Venture index is up 7% this year and 4% just this week. In uncertain times, one buys gold bullion and gold shares. Silver has pushed up to USD$32.40 this morning, and many expect it to outperform gold this year.
Base and industrial metals are beginning to rise despite the strong U.S. dollar and are expected to continue their upward trend this year. Copper has climbed 10% year-to-date, now trading at USD$4.40/lb, while nickel is up nearly 4%, reaching USD$7.17/lb. China's economic stimulus efforts, particularly in manufacturing, may be driving increased demand for metals.
Battery minerals and critical materials remain pressured by trade policies from the Trump era. However, sectors like energy generation, data centers, AI, and cryptocurrency continue to thrive, which should drive investment and demand for these materials. Meanwhile, the EV sector struggles to gain momentum, waiting for a catalyst. Lithium slipped to USD$10.60/kg this week, while cobalt remains at an all-time low of USD $9.75/lb.
We are pleased to present to you our round-up of their news released between February 2-7, 2025.
Mining
On February 3, 2025, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) announced that, the Company has closed its non-brokered flow-through and non-flow-through private placement financing (the "Financing") for aggregate gross proceeds of $1,706,250. The Company has issued 36,412,500 $0.04 flow-through shares, with each flow-through common share of the Company entitling the holder to receive the tax benefits applicable to flow-through shares in accordance with provisions of the Income Tax Act (Canada), for $1,456,500. The Company has also issued 7,135,714 $0.035 non-flow-through common shares for $249,750. All securities issued pursuant to the Financing are subject to a four-month and one-day hold period.
On February 6, 2025, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) following on from the assay results released on January 22, 2025, announced the remaining drill results from the Western Trend completed before Christmas 2024 at the 100%-owned Moosehead Project highlighted by the following:
MH-24-650: 23.83 g/t Au over 1.67 m incl. 59.38 g/t Au over 0.60 m from 43.65 m
MH-24-657: 335.98 g/t Au over 0.45 m from 104.55 m
MH-24-658: 25.50 g/t Au over 1.00 m from 92.95 m
President and CEO Timothy Froude, P.Geo., stated,"The Western Trend continues to deliver high-grade results, and the structure is holding up well and remains open to depth. Western Trend drilling has now resumed, with 18 holes proposed to expand the mineralization to depth and along strike to the south. The present drilling at the Western Trend will continue until the spring thaw. Drilling to date has defined the Western Trend mineralization to a depth of 165 m down plunge and 100 m vertically, and 145 m along strike to the south of the trench. This area is the proposed site for our conventional bulk sample, expected in late Q1 or early Q2 2025. We are working with Dr. David Coller to identify a drill target area northwest of the Western Trend trench. This area contains historical intersections that didn't match previous geological models. With new structural insights from our successful trenching and mapping program in late 2024, we are revisiting these intersections to better understand their potential.
SAVE THE DATE
The World’s Premier Mineral Exploration & Mining Convention.
CHF Capital Markets CEO, Cathy Hume, will be part of an expert panel on capital markets during a short course at PDAC.
Sunday, March 2, 2025, 8:30 to 12:30 – the panel itself will be from 9:45 to 10:30 in the Metro Toronto Convention Centre, room TBD.
More info and registration:
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