CHF WEEKLY ROUND-UP: July 7-11, 2025

President Trump’s latest trade announcements have raised new concerns about global economic growth. While global markets were rising early in the week, they pulled back yesterday and appear weaker today. The words "uncertain" and "uncertainty" are being spoken too often in market commentary, and especially from Fed Chair Jerome Powell.

The TSX hit another all-time high yesterday but tailed off at the end of the session to finish the week up marginally.  The Venture index is up more than 3% this week, rising this morning to its highest level since the beginning of May 2022. Statistics Canada reported today that the unemployment rate dropped to 6.9% in June, with the first significant job gain since January. The economy added some 83,000 jobs, with 47,000 positions added in the private sector. Economists had expected the jobless rate would rise to 7.1%.

Trump has threatened Canada with 35% tariffs. Apart from those goods protected by the USMCA, everything else is hit: Steel, Aluminum, and Copper are now to be tariffed at 50%. Trump’s latest trade assault came as a surprise to investors, who had been anticipating that Ottawa could seal a new economic and security deal with its southern neighbour by August 1. The Canadian dollar (CAD) weakened against the U.S. dollar (USD).

Canada’s Finance Minister François-Philippe Champagne is asking all Federal Ministers to slash their expenses. Prime Minister Mark Carney needs to pay for billions of dollars in new spending, including a middle-class tax cut and a $9.3 billion boost to meet NATO’s defence spending target of two percent of GDP by this fiscal year.

On Thursday, both the S&P 500 and the Nasdaq rose to new record highs, then fell back late in the session. However, the 50-day moving averages rose above its 200-day moving averages, forming "golden crosses" that tend to be bullish breakout patterns, and the possibility of a long-term bull market.

Rather than announcing trade deals, President Trump has broadened his trade war, imposing new tariffs on 14 countries, including allies Japan and South Korea, as well as a 50% tariff on Copper. Bringing manufacturing back to the U.S. is one thing, but opening a new mine is another. Currently, that process would take a decade. The governments have until August 1 to respond before the tariffs are imposed. On Tuesday, Trump said he would be announcing tariffs on pharmaceutical drugs at a “very, very high rate, like 200 percent.”

U.S. Real GDP is at a record high, and so is the stock market. The U.S. economy has remained recession-resistant since the COVID-19 lockdown in the first half of 2020. That is almost six recession-free years, notwithstanding the pandemic, the Russian invasion of Ukraine, the tightening of monetary policy, the war in the Middle East, and Trump's Tariff Turmoil. The U.S. dollar is rising this week, fuelled by upheavals on the global trade landscape. Most of the uncertainty faced by Federal Reserve officials stems from tariff turmoil, and while they are leaning toward lowering the federal funds rate, they appear in no hurry to do so, as they are concerned that tariffs will still drive higher inflation.

Gold is at USD$3,354.22/oz this morning. Silver is at a 13-year high of USD$37.61. Precious Metals have posted impressive gains this year, defying traditional market dynamics amid growing concerns about President Trump's aggressive trade policies. The rally suggests that investors have chosen to flee to safe-haven assets as policy uncertainty overshadows otherwise supportive economic fundamentals. Gold has been stuck in a tight range around USD$3,300/oz for the past ten weeks, but that mirrors the trading pattern before its last major breakout in early 2024. Silver appears poised for a breakout.

Platinum had its best month in a decade, rising more than 28% in June and topping USD$1,400/oz, the highest since 2014. South African output is down 13% and above-ground stockpiles are shrinking rapidly, indicating a bullish longer-term setup. Palladium ran to a two-year high of USD$1,200/oz as it became attractive as a substitute for Platinum in automotive applications.

Every secular bull market in Gold seems to be followed by one in Copper, which spiked to an all-time high above USD$5.55/lb on the announcement of U.S. tariffs on imports.  Gold bulls should not ignore Copper.  Nickel remains in a six-month downtrend, but other Base and Industrial Metals have tightened and are near three-month highs.

Battery, Electric and other Critical Minerals did not make any significant price gains this week as China's dominance and market control are holding this sector down. China has announced that it will continue to strengthen the examination and approval process for Rare Earth Elements export applications, promoting the facilitation of compliant trade. Lithium experienced a slight uptick, likely due to China's battery manufacturers ramping up output.

The Indian government is planning an incentive program worth up to 25 billion rupees (approximately USD$290 million) for private sector firms manufacturing neodymium and praseodymium magnets, aiming to reduce its reliance on China for these vital materials used in electric vehicles and wind turbines. India does not have significant Mineral Resources or mines, and processing facilities can take years to build. Additionally, processing expertise remains heavily concentrated in China, which controls about 90% of the world’s Rare Earth Elements processing.

The Uranium price remained soft at USD$73.30/lb this week, despite no improvement in the impending supply gap and growth in planned nuclear power facilities.

We are pleased to present our round-up of client news released between July 7 and 11, 2025.

Mining

On July 10, 2025, Libra Energy Materials Inc. (CSE: LIBR) announced that the Company's common shares will begin trading on the Canadian Securities Exchange (the "CSE") under the symbol "LIBR". Libra is a Canadian mineral exploration company focused on the discovery and development of critical minerals, with 57,466,828 common shares issued and outstanding.

Koby Kushner, CEO and Director, said, "Going public is more than a milestone for Libra – it's a launchpad for growth. From our humble beginnings as a grassroots explorer to our award-winning SBC discovery and $33M KoBold Metals deal, we have proven our ability to thrive in tough markets. As a former lithium analyst, I believe lithium prices are nearing a turning point, creating a window to acquire prospective assets at bargain prices. We aim to position Libra as the ultimate counter-cyclical play, leveraging public markets to pursue M&A and sustain low-cost, high-impact exploration, targeting outsized returns as lithium rebounds and new discoveries emerge. We are just getting started, and we welcome new investors to join us on this exciting journey.”

Libra's Flanders North, Flanders South, and SBC projects in Ontario are being explored under a $33 million earn-in deal with KoBold Metals Company. In addition, Libra has 100% ownership of its Toivo project in Ontario, adjacent to SBC, as well as its Nemiscau and Wegucci projects in Quebec, Canada.

On July 10, 2025, Rocky Shore Gold Ltd. (CSE: RSG) announced that compilation of a recently flown VTEM geophysical survey has identified a potential extension of the Lane Pond Gold Target within the Company’s 100%-owned Gold Anchor Project. The Lane Pond Gold Target now extends to over 11 kilometres in length. It is associated with significant surface, float and till gold values and is strategically located along the prolific, gold-bearing Appleton Fault Corridor. The Corridor is a major gold-bearing fault zone that trends for more than 150 kilometres in central Newfoundland. It hosts a gold resource and diamond drill discoveries on the adjacent property, as well as significant untested gold targets throughout its entire length. The Gold Anchor Project spans more than 70 kilometres of strike length over several favourable gold-bearing fault zones and is the second-largest project (1,200 square kilometres) within an emerging gold district.

Ken Lapierre, President and Chief Executive Officer, commented, “The more we explore, the more gold potential we discover on this very strategic and exciting project. Our summer exploration program is currently underway. It consists of approximately 40 kilometres of Induced Polarization (IP), ground Magnetic and Very Low Frequency (VLF) geophysical surveys and soil and till sampling over the north extension of the Lane Pond Gold Target. Also, a till sampling and prospecting program has been initiated on the Lane Pond Gold South Extension. The geophysical anomalies associated with the Lane Pond Gold Target and its extension, combined with the recent and historical gold results in this area, make for a compelling gold target that is now more than 11 kilometres long. We plan to be drill-ready this fall to evaluate the Lane Pond Gold Target with Rocky Shore’s inaugural drill program at Gold Anchor.”

Regional Gold-Bearing Faults within the Emerging Central Gold District

Geology Associated with Lane Pond and Lane Pond Gold Target Extension