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October 11, 2025

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S&P 500 Breaking Out Again: What This Means for Your Portfolio

The S&P 500 ($SPX) just logged its fifth straight trading box breakout, which means that, of the five trading ranges the index has experienced since the April lows, all have been resolved to the upside.

How much longer can this last? That’s been the biggest question since the massive April 9 rally. Instead of assuming the market is due to roll over, it’s been more productive to track price action and watch for potential changes along the way. So far, drawdowns have been minimal, and breakouts keep occurring. Nothing in the price action hints at a lasting change — yet.

While some are calling this rally “historic,” we have a recent precedent. Recall that from late 2023 through early 2024, the index had a strong start and gave way to a consistent, steady trend.

From late October 2023 through March 2024, the S&P 500 logged seven consecutive trading box breakouts. That streak finally paused with a pullback from late March to early April, which, as we now know, was only a temporary hiccup. Once the bid returned, the S&P 500 went right back to carving new boxes and climbing higher.

New 52-Week Highs Finally Picking Up

If there’s been one gripe about this rally, it’s that the number of new highs within the index has lagged. As we’ve discussed before, among all the internal breadth indicators available, new highs almost always lag — that’s normal. What we really want to see is whether the number of new highs begins to exceed prior peaks as the market continues to rise, which it has, as shown by the blue line in the chart below.

As of Wednesday’s close, 100 S&P 500 stocks were either at new 52-week highs or within 3% of them. That’s a strong base. We expect this number to continue rising as the market climbs, especially if positive earnings reactions persist across sectors.

Even when we get that first day with 100+ S&P 500 stocks making new 52-week highs, though, it might not be the best time to initiate new longs.

The above chart shows that much needs to align for that many stocks to peak in unison, which has historically led to at least a short-term consolidation, if not deeper pullbacks — as highlighted in yellow. Every time is different, of course, but this is something to keep an eye on in the coming weeks.

Trend Check: GoNoGo Still “Go”

The GoNoGo Trend remains in bullish mode, with the recent countertrend signals having yet to trigger a greater pullback.

Active Bullish Patterns

We still have two live bullish upside targets of 6,555 and 6,745, which could be with us for a while going forward. For the S&P 500 to get there, it will need to form new, smaller versions of the trading boxes.

Failed Bearish Patterns

In the chart below, you can view a rising wedge pattern on the recent price action, the third since April. The prior two wedges broke down briefly and did not lead to a major downturn. The largest pullbacks in each case occurred after the S&P 500 dipped below the lower trendline of the pattern.

The deepest drawdown so far is 3.5%, which is not exactly a game-changer. Without downside follow-through, a classic bearish pattern simply can’t be formed, let alone be broken down from.

We’ll continue to monitor these formations as they develop because, at some point, that will change.

Top 5 Canadian Mining Stocks This Week: Valhalla Jumps 282 Percent on Ambler Approval

Statistics Canada released September’s job data on Friday (October 10). According to the release, 60,000 jobs were added to the Canadian economy during the month, and the employment rate increased to 60.6 percent, up 0.1 percent from August. However, the unemployment rate remained unchanged at 7.1 percent.

The increase in the labor market follows a significant decline of 106,000 combined jobs over the previous two months.

Leading the gains was the manufacturing sector, which added 28,000 jobs to the labor force. The increase was followed by 14,000 new workers in the health care and social assistance sector, and 13,000 new roles in the agriculture sector.

The natural resources sector posted a 2.2 percent gain, adding 7,100 new jobs over August’s numbers, but the sector shed 18,200 workers over September 2024.

Earlier in the week, StatsCan released a report on the economic contribution of critical mineral production in 2023 on Monday (October 6).

In 2023, critical mineral production contributed C$30.2 billion in nominal gross domestic product (GDP) and C$20.9 billion in real GDP terms, which accounted for 1.1 percent of the total economy and 37.4 percent of the mineral and mining sector.

The report also details a nominal GDP increase of 63 percent and a real GDP growth of 12.7 percent between 2019 and 2023. During the same period, job growth increased by 6.2 percent, with the subsector employing nearly 55,000 workers, outpacing the entire mineral and mining sector and the broader economy, which grew by 5.2 percent and 5.6 percent, respectively.

South of the border, the White House announced on Monday that President Donald Trump approved the Ambler Access Road project in Alaska. This was followed by a 50 to 46 vote by the Senate on Thursday evening to repeal a land management plan for Alaska that had delayed development of the road.

The controversial project would connect the Dalton Highway to the Ambler Mining District via a route that passed through the Gates of the Arctic National Park, considered one of the United States’ best-preserved parks.

The access road was initially approved during Trump’s first term in office, but approvals were rescinded in 2024 under the Biden administration due to the impact on the Western Arctic caribou herd, salmon and other wildlife. The Native American Tribes who live, hunt and fish in the area have largely stood in opposition to the road.

Proponents point to access to critical minerals like copper and gallium, which have become a focal point as the US seeks to increase domestic production of these minerals, which are required for the advancement of AI technologies, data centers and national defense.

Both gold and silver soared to record highs this week, with the gold price reaching US$4,058.98 per ounce on Wednesday (October 8) and the silver price climbing to an intraday all-time high of US$51.14 per ounce on Thursday (October 9). While gold has been consistently setting new records in 2025, silver broke its all-time high set in 1980.

Precious metals have seen broad gains since the start of the year, fueled by widespread uncertainty in the global economy due to factors including chaotic US trade policy and, most recently, the failure of US lawmakers to agree on a funding package to prevent the federal government from shutting down.

For more on what’s moving markets this week, check out our top market news round-up.

Markets and commodities react

Canadian equity markets were mixed this week.

The S&P/TSX Composite Index (INDEXTSI:OSPTX) halted its record-breaking run this week, losing 1.17 percent to close Friday at 29,850.89.

The S&P/TSX Venture Composite Index (INDEXTSI:JX) fared better, ending a volatile week up 1.75 percent at 980.77. The CSE Composite Index (CSE:CSECOMP) was up 2.2 percent to close out the week at 184.31.

The gold price set another new record, reaching an intraday high of US$4,058.98 per ounce on Wednesday. On the week, gold was up 3.39 percent to US$4,018.68 by Friday’s close.

The silver price saw even stronger gains, breaking its own all time high on Thursday at US$51.14 per ounce, before pulling back slightly to post a weekly gain of 4.27 percent to US$50.03 per ounce by 4:00 p.m. EDT Friday.

Copper was up as much as 3 percent on the week during trading Thursday, but the copper price collapsed on Friday, falling from US$5.10 to end the week at US$4.80 per pound.

The S&P Goldman Sachs Commodities Index (INDEXSP:SPGSCI) fell 0.71 percent to end Friday at 539.97.

Top Canadian mining stocks this week

How did mining stocks perform against this backdrop?

Take a look at this week’s five best-performing Canadian mining stocks below.

Stocks data for this article was retrieved at 4:00 p.m. EDT on Friday using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market caps greater than C$10 million are included. Mineral companies within the non-energy minerals, energy minerals, process industry and producer manufacturing sectors were considered.

1. Valhalla Metals (TSXV:VMXX)

Weekly gain: 282.35 percent
Market cap: C$44.59 million
Share price: C$0.65

Valhalla Metals is a polymetallic exploration company with a pair of projects in Alaska’s Ambler Mining District, the Sun and Smucker projects.

Its primary focus, the Sun project consists of 392 claims that cover an area of 25,382 hectares.

A May 2022 technical report states that the indicated resource for the project is 1.71 million metric tons of ore containing 55.85 million pounds of copper, 162.96 million pounds of zinc, 42.04 million pounds of lead, 3.3 million ounces of silver and 12,000 ounces of gold.

It also reported an inferred resource of 9.02 million metric tons containing 239.64 million pounds of copper, 831.33 million pounds of zinc, 290.26 million pounds of lead, 23.68 million ounces of silver and 73,000 ounces of gold.

The project is largely dependent on the construction of the 211 mile Ambler Access Road, which Trump approved in his first term. Former President Joe Biden rescinded the federal permit in 2024 due to environmental concerns, which is discussed in-depth above.

Shares in Valhalla surged this week after the Senate and the White House signaled support for the project. The company said in a news release on Tuesday (October 7) that it was excited by the reversal and will now be able to restart exploration and expand the known resources at the Sun Deposit.

2. Trilogy Metals (TSX:TMQ)

Weekly gain: 191.35 percent
Market cap: C$1.53 billion
Share price: C$8.42

Trilogy Metals is a polymetallic exploration and development company working to advance its Upper Kobuk mineral projects in Northern Alaska, which it owns in a 50/50 joint venture with South32 (ASX:S32,OTC Pink:SHTLF).

Its most advanced asset is the Arctic copper, zinc, lead, gold and silver project, which is in the feasibility stage. In an updated feasibility study from February 2023, the company reported annual payable production volumes of 148.68 million pounds of copper, 172.6 million pounds of zinc, 25.75 million pounds of lead, 32,538 ounces of gold and 2.77 million ounces of silver.

After tax, the study pegged the net present value at US$1.11 billion, with an internal rate of return of 22.8 percent and a payback period of 3.1 years.

Trilogy’s other key asset is the Bornite copper-cobalt project located 25 kilometers southwest of its Arctic project. The site hosts widespread mineralization and has seen historic exploration dating back to the 1950s.

A preliminary economic assessment for Bornite, dated January 15, established an after-tax net present value of US$393.9 million, with an internal rate of return of 20 percent and a payback period of 4.4 years. The updated mineral resource included with the report estimates an inferred resource of 6.53 billion pounds of copper with an average grade of 1.42 percent from 208.9 million metric tons of ore.

Like Valhalla’s, shares in Trilogy surged this week on the news that the US government approved construction of the Ambler Access Road.

Additionally, Trilogy reported on Monday that it had entered into a binding letter of intent, that would see the US Department of Defense invest US$17.8 million in Trilogy in exchange for 8.22 million shares, or 10 percent of the company, and will hold warrants for an additional 7.5 percent.

Both Trilogy and the DoD stated that they will work in good faith to facilitate financing for the construction of the road and will include permit applications for the FAST-41 process to expedite mining development.

3. ARES Strategic Mining (CSE:ARS)

Weekly gain: 180.65 percent
Market cap: C$184.54 million
Share price: C$0.87

Ares Strategic Mining is a development company advancing its Lost Sheep fluorspar mine in Utah, US, to production.

Initially acquired in 2020, the property consists of 353 claims across 5,982 acres south-west of Salt Lake City. The Lost Sheep fluorspar mine is currently in the construction phase and has received backing from the state of Utah and the federal government. It is the only permitted fluorspar mine in the country.

Ares reported on July 31 that it had launched a program with Iowa State University and the Ames National Laboratory to explore the potential of extracting gallium from the site in addition to fluorspar,

As part of this research, the company indicated on September 16 that it had also confirmed the presence of germanium within fluorspar samples from its Lost Sheep mine. The company said that the discovery has the potential to unlock additional critical mineral value from the project.

In its most recent construction update on September 11, Ares reported the Lumps plant has reached an advanced stage, with concrete foundations and pads being completed and steel frame structures being erected.

4. Nord Precious Metals (TSXV:NTH)

Weekly gain: 154.55 percent
Market cap: C$17.04 billion
Share price: C$0.42

Nord Precious Metals is focused on advancing its projects in Ontario, Canada, and owns the TTL silver gravity plant in the region.

The company’s primary exploration property is the Castle project located south of Timmins in the Cobalt Camp. It covers an area of 7,332.76 hectares and hosts the past producing Castle mine complex, which produced 9.4 million ounces of silver and 376,000 pounds of cobalt.

A 2021 mineral resource estimate revealed a total inferred silver equivalent resource of 7.57 million ounces, with an average grade of 7,149 grams per metric ton (g/t) silver, 2,537 g/t cobalt, 628 g/t of copper, and 467 g/t of nickel, from 32.9 million metric tons of ore.

The company also owns the past-producing Beaver Mine, located just east of Castle along the border between Ontario and Quebec. The mine operated until 1940 and produced 7.1 million ounces of silver.

The company has been working on the development of a tailings recovery program at the site, announcing on October 1 that test work produced commercial high-grade silver with concentrations up to 2,114.9 g/t.

Nord is planning to apply for a recovery permit to process tailings at its TTL gravity plant, which it plans to begin commissioning once it receives the permit.

The company said that the results validate the technical approach to the tailings program.

5. Avalon Advanced Materials

Weekly gain: 145.45 percent
Market cap: C$47.82 billion
Share price: C$0.135

Avalon Advanced Materials is an explorer and developer focused on lithium projects in Canada.

The company’s flagship project is its 40 percent owned Separation Rapids lithium project in Ontario, a joint venture with SCR-Sibelco, which owns the remaining 60 percent.

The project consists of three primary lithium targets: the Separation Rapids deposit; the Snowbank target, located near Kenora; and the Lilypad project near Fort Hope, which also hosts tantalum and cesium mineralization.

The pair increased the project’s measured and indicated resource by 28 percent in late February.

Avalon is also developing the Lake Superior lithium processing facility in Thunder Bay, Ontario.

The most recent news from Avalon came on Thursday when it reported that it had produced lithium hydroxide and analcime using an alkaline leach process developed by Finnish mineral processing company Metso.

The company said that early assessments indicate a 60 percent potential reduction in water use, along with a smaller carbon footprint compared to traditional methods. It stated that the achievement marked a milestone for the company to establish a sustainable lithium processing solution at its facility

FAQs for Canadian mining stocks

What is the difference between the TSX and TSXV?

The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.

How many mining companies are listed on the TSX and TSXV?

As of May 2025, there were 1,565 companies listed on the TSXV, 910 of which were mining companies. Comparatively, the TSX was home to 1,899 companies, with 181 of those being mining companies.

Together, the TSX and TSXV host around 40 percent of the world’s public mining companies.

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

Article by Dean Belder; FAQs by Lauren Kelly.

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

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

This post appeared first on investingnews.com

SAGA Metals Announces Closing of Fully Subscribed Non-Brokered Private Placement and Provides Corporate Update

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSMINATION IN THE UNITED STATES.

Saga Metals Corp. (‘SAGA’ or the ‘Company’) (TSXV: SAGA,OTC:SAGMF) (OTCQB: SAGMF) (FSE: 20H), a North American exploration company focused on critical minerals, is pleased to announce the closing of its previously announced non-brokered private placement pursuant to which the Company raised aggregate gross proceeds of C$2,988,024.64 (the ‘ Offering ‘).

Pursuant to the Offering, the Company issued (i) 7,100,088 flow-through common share units of the Company (the ‘ FT Units ‘) at C$0.28 per FT Unit for gross proceeds of C$1,988,024.64, and (ii) 4,000,000 hard dollar common share units of the Company (the ‘ HD Units ‘, and together with the FT Units, the ‘ Securities ‘) at C$0.25 per HD Unit for gross proceeds of C$1,000,000.

Financing Overview:

Each FT Unit consists of one flow-through common share as defined in subsection 66(15) of the Income Tax Act (Canada) (the ‘ Tax Act ‘), and one-half of one transferable common share purchase warrant (each whole warrant, a ‘ Warrant ‘). Each Warrant will entitle its holder to purchase one common share in the capital of the Company (a ‘ Warrant Share ‘) at a price of C$0.50 until October 10, 2027. The Warrant Shares underlying the FT Units will not qualify as ‘flow-through shares’ under the Tax Act.

Each HD Unit consists of one common share and one-half of one Warrant. Each whole Warrant will entitle its holder to purchase one Warrant Share at a price of C$0.50 until October 10, 2027.

Each of the Warrants will be subject to the right of the Company to accelerate the expiry date of the Warrants to a date that is 30 days following dissemination of a news release announcing such acceleration if, at any time, after October 10, 2025 (the ‘ Closing Date ‘), the closing price of the Company’s common shares equals or exceeds C$0.75 for a period of ten consecutive trading days on the TSX Venture Exchange (the ‘ Exchange ‘).

All securities issued in connection with the Offering are subject to a hold period of four months and one day following the Closing Date pursuant to applicable securities laws, expiring February 11, 2026.

The Company paid cash finder’s fees in the aggregate amount of $130,003 and issued an aggregate of 478,204 finder’s warrants in connection with the Offering. Each finder’s warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.50 per share for a period of 24 months from the Closing Date.

The gross proceeds from the FT Units will be used by the Company for ‘Canadian exploration expenses’ that are ‘flow-through critical mineral mining expenditures’ (as such terms are defined in the Tax Act) on the Company’s Canadian mineral resource properties. The net proceeds of the HD Units will be used by the Company for administrative and general working capital, which may include investor relations activities.

The securities of SAGA 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 may not be offered or sold, within the United States, unless exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws are available.

No securities regulatory authority has reviewed or approved of the contents of this news release. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of SAGA in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Marketing Services Agreement with Capitaliz.

The Company further reports that it has entered into a digital marketing services agreement effective as of October 13, 2025 (the ‘ Capitaliz Agreement ‘) with 1123963 B.C. Ltd. D.B.A. Capitaliz (‘ Capitaliz ‘). Pursuant to the Capitaliz Agreement, Capitaliz will, among other things, provide the Company with certain marketing services to expand investor awareness of the Company’s business and to communicate with the investment community (the ‘ Capitaliz Services ‘). The Capitaliz Services will be provided by Capitaliz over a three-month term. The Capitaliz Agreement may be terminated at any time by either party with 30 days’ notice.

Capitaliz is a content-driven digital marketing agency that connects public companies with social media influencers across all major social media platforms, leveraging a creator network that reaches over 100 million subscribers.

The Capitaliz Services will include, among other things: (i) multimedia content creation and syndication, including the production and distribution of editorial video content; (ii) targeted traffic generation through a combination of pay-per-click advertising, social media marketing, native advertising, search engine optimization, email campaigns, and retargeting strategies; and (iii) strategic social media amplification of campaign content across platforms such as Investorhub and YouTube; and (iv) expanded distribution through established relationships with financial media platforms. In consideration of the Capitaliz Services, and pursuant to the terms and conditions of the Capitaliz Agreement, the Company has agreed to pay Capitaliz a fee of C$200,000 (plus applicable taxes) over a three-month term, which will be paid using the Company’s available working capital.

The Capitaliz Services will be rendered primarily online through a variety of news and investment community communications channels. Jeff Leslie, the principal of Capitaliz – located at 704 – 595 Howe Street, Box 35, Vancouver, BC, V6C 2T5 – will be involved in conducting the Capitaliz Services. Capitaliz and Mr. Leslie do not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest. The terms and conditions of the Capitaliz Agreement remain subject to approval of the Exchange.

Online Marketing Agreement with i2i Marketing Group, LLC.

In addition, the Company reports that it entered into an online marketing agreement (the ‘ i2i Agreement ‘) with i2i Marketing Group, LLC (‘ i2i ‘). Pursuant to the i2i Agreement, i2i will, among other things, provide the Company with corporate marketing and investor awareness services, including, but not limited to, content creation management, author sourcing, project management and media distribution (the ‘ i2i Services ‘). The i2i Services will be provided by i2i pursuant to an initial US$250,000 budget, which will be paid using the Company’s available working capital, and may continue on a month-to-month basis thereafter until the i2i Agreement is terminated. The i2i Agreement may be terminated by either party upon 10 days’ advance written notice to the other party during the contract term.

The i2i Services will be rendered primarily online through a variety of news and investment community communications channels. Joe Grubb and Kailyn White, principals of i2i will be providing services on behalf of i2i, which has an office located at 1107 Key Plaza #222 Key West, FL 33040. i2i, Mr. Grubb, and Ms. White do not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest.

The terms and conditions of the i2i Agreement remain subject to approval of the Exchange.

About Saga Metals Corp.

Saga Metals Corp. is a North American mining company focused on the exploration and discovery of a diversified suite of critical minerals that support the global transition to green energy. The Radar Titanium Project comprises 24,175 hectares and entirely encloses the Dykes River intrusive complex, mapped at 160 km² on the surface near Cartwright, Labrador. Exploration to date, including a 2,200m drill program, has confirmed a large and mineralized layered mafic intrusion hosting vanadiferous titanomagnetite (VTM) with strong grades of titanium and vanadium.

The Double Mer Uranium Project, also in Labrador, covers 25,600 hectares featuring uranium radiometrics that highlight an 18km east-west trend, with a confirmed 14km section producing samples as high as 0.428% U 3 O 8 and uranium uranophane was identified in several areas of highest radiometric response (2024 Double Mer Technical Report).

Additionally, SAGA owns the Legacy Lithium Property in Quebec’s Eeyou Istchee James Bay region. This project, developed in partnership with Rio Tinto, has been expanded through the acquisition of the Amirault Lithium Project. Together, these properties cover 65,849 hectares and share significant geological continuity with other major players in the area, including Rio Tinto, Winsome Resources, Azimut Exploration, and Loyal Metals.

With a portfolio that spans key minerals crucial to the green energy transition, SAGA is strategically positioned to play an essential role in the clean energy future.

On Behalf of the Board of Directors

Mike Stier, Chief Executive Officer

For more information, contact:

Rob Guzman, Investor Relations
Saga Metals Corp.
Tel: +1 (844) 724-2638
Email: rob@sagametals.com
www.sagametals.com

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

Cautionary Disclaimer

This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as ‘will’, ‘may’, ‘should’, ‘anticipates’, ‘expects’, ‘believes’, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. In particular, this news release contains forward-looking statements regarding discussions of future plans, estimates and forecasts and statements as to management’s expectations and intentions with respect to, among other things, the Offering, including the expected use of proceeds from the Offering, the receipt of the Capitaliz Services and the i2i Services, and the terms of the Capitaliz Agreement and the i2i Agreement. 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. Important factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, environmental risks, limitations on insurance coverage, inherent risks and uncertainties involved in the mineral exploration and development industry, particularly given the early-stage nature of the Company’s assets, and the risks detailed in the Company’s continuous disclosure filings with securities regulations from time to time, available under its SEDAR+ profile at www.sedarplus.ca. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.

News Provided by GlobeNewswire via QuoteMedia

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China outlines more controls on exports of rare earths and technology

HONG KONG — China outlined new curbs on exports of rare earths and related technologies on Thursday, extending controls over use of the elements critical for many high-tech and military products ahead of a meeting in about three weeks between President Donald Trump and Chinese leader Xi Jinping.

The regulations announced by the Ministry of Commerce require foreign companies to get special approval to export items that contain even small traces of rare earths elements sourced from China. These critical minerals are needed in a broad range of products, from jet engines, radar systems and electric vehicles to consumer electronics including laptops and phones.

Beijing will also impose permitting requirements on exports of technologies related to rare earths mining, smelting, recycling and magnet-making, it said.

China accounts for nearly 70% of the world’s rare earths mining. It also controls roughly 90% of global rare earths processing. Access to such materials is a key point of contention in trade talks between Washington and Beijing.

As Trump has raised tariffs on imports of many products from China, Beijing has doubled down on controls on the strategically vital minerals, raising concerns over potential shortages for manufacturers in the U.S. and elsewhere.

It was not immediately clear how China plans to enforce the new policies overseas.

During a cabinet meeting Thursday, Trump said he had yet to be briefed on the new rules but suggested that the U.S. could stop buying Chinese goods. “We import from China massive amounts,” Trump said. “Maybe we’ll have to stop doing that.”

Neha Mukherjee, a rare earths analyst at Benchmark Mineral Intelligence, called the new export controls “a strategic move by China that mirror some of Washington’s new chip export rules.

“Most rare earth magnet manufacturers in the U.S., Japan and elsewhere remain heavily dependent on rare earths from China, so these restrictions will force some difficult decisions — especially for any company involved in military uses of rare earths because most of those export licenses are expected to be denied, he said.

“The message is clear: if the U.S. and its allies want supply chain security, they must build independent value chains from mine to magnet,” Mukherjee said.

The new restrictions are to “better safeguard national security” and to stop uses in “sensitive fields such as the military” that stem from rare earths processed or sourced from China or from its related technologies, the Commerce Ministry said.

It said some unnamed “overseas bodies and individuals” had transferred rare earths elements and technologies from China abroad for military or other sensitive uses which caused “significant damage” to its national security.

The new curbs were announced just weeks ahead of an expected meeting between Trump and Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum in South Korea, that begins at the end of this month.

“Rare earths will continue to be a key part of negotiations for Washington and Beijing,” George Chen, a partner at The Asia Group, said in an emailed comment. “Both sides want more stability but there will be still a lot of noises before the two leaders, President Trump and Xi, can make a final deal next year when they meet. Those noises are all negotiation tactics.”

These new restrictions will likely prompt additional government and private investments in developing a mine-to-magnet supply chain outside of China. Mukherjee said that $520 million of investments in the American rare earths industry were announced just in the second quarter with most of that coming from the government.

And there is some progress already being made with American magnet maker Noveon announcing an agreement with Lynas Rare Earths this week to secure a supply of rare earths outside of China from Lynas’ mine in Australia, and MP Materials preparing to begin producing magnets later this year at its new plant in Texas that uses rare earths from the only U.S. mine that it operates in California.

In July, the U.S. Defense Department agreed to invest $400 million in shares of the Las Vegas company, establish a floor for the price of key elements, and ensure that all of the magnets made at a new plant in the first 10 years are purchased.

An MP Materials spokesperson said China’s action “reinforces the need for forward-leaning U.S. industrial policy. Building resilient supply chains is a matter of economic and national security.”

Wade Senti, president of the U.S. permanent magnet company AML, said it’s time to innovate.

“The game of chess that China is playing underscores the importance of developing innovation that changes the game and puts the United States in leading position,” Senti said.

Nazak Nikakhtar, a former Commerce Department undersecretary, said the new restrictions are “a significant development and escalation” by extending controls to related technology and equipment and to sectors like chipmakers. “This should be a wake-up call to the U.S. government that we need to invest in and appropriate more to domestic capabilities. Both are critical to rebuild America’s rare earths industrial base,” she said.

In April, Chinese authorities imposed export curbs on seven rare earth elements shortly after Trump unveiled his steep tariffs on many trading partners including China.

While supplies remain uncertain, China approved some permits for rare earth exports in June and said it was speeding up its approval processes.

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