A Weekly Recap of All Things Resources to Friday, January 3rd, 2025

‘That’s a Wrap’

By Rod Blake

As the few investors, brokers, traders and portfolio managers who weren’t on holiday settled in for the last two trading days of 2024 and the first two of 2025, there was a collective hope while The Grinch stole the highly anticipated Christmas rally – perhaps a Year-End / New Year rally was in the cards.

The way I see it – the trading days after Christmas and into early January can be very unpredictable – especially in the junior markets – as markets are thinly traded with many participants on holidays. A thinly traded market means there are few participants in that market and very few shares offered or bid at any one time. I can remember working during this time as a young broker in the mid 1990s. One of the companies I was involved with – LaTeko Resources Ltd. ‘LAO’ on the old Vancouver Stock Exchange (VSE) was trading quietly at about $1.75 when suddenly the stock started to trade up in 5 to 10-cent increments until it finally halted by the Exchange for clarification of the sudden price appreciation. Most of the company officials were away on holiday but one, Jim Billingsley was found. Jim confirmed there was no news pending and the stock was allowed to trade again and closed that day up a dollar or at about $2.75 on just a few hundred thousand shares traded. On further inquiry it was found that a broker in Minnesota – who was used to trading the very liquid American markets and wasn’t familiar with the smaller VSE – had put in a ‘market’ order to buy 100,000 shares of La Teko. Market orders do not have a specified price and will buy or sell steadily until the order if filled. The market order just kept buying and taking out offers in a thin market. This probably wouldn’t have happened a few weeks later in the New Year when more stock watchers were back at work. The broker even apologized for disrupting the La Teko market. This was just one of many unique times on the old VSE.

The new trading week began with the U.S. Dollar Index ‘DXY’ rosing to a new 2-year closing high of 109.28.

As silver fell to close at a new 3^½-month low of US$28.94 a troy ounce (t oz).

Which no doubt helped investors to sell Pan American Silver Corp. ‘PAAS-T & N’ down to a new 3-month closing low of $28.77 and Impact Silver Corp. ‘IPT-V’ to close at a new 4-month low of $0.19.

Minera Alamos Inc. ‘MAI-V’ shares’ fell to a new 3^½-month closing low of $0.25.

Marimaca Copper Corp. ‘MARI-T’ shares’ rose by $0.15 or 2.92^% to $5.29 after the Vancouver, BC based mineral explorer reported its step out drill hole SMR-01 drilled 400 metres (m) north of the company’s Pampa Medina deposit in Chile returned 400 metres of 0.49^% copper per tonne (Cu/t).

This as copper fell to close at a new 5-month low of US$3.98 a pound (lb).

Zinc dropped to a new 3-month closing low of US$1.32 a lb.

And nickel fell to close at a new 4-year low of US$6.84 a lb.

Natural gas rose to close at a new 1-year high of US$3.90 per million British thermal units (mmBtu).

2024 came to a close with natural gas and gold bullion making the greatest commodity gains on the year, while lithium and uranium fell the most.

For 2024 – the DJI gained 12.88^% to 42,544, with the S&P 500 up 23.31^% to 5,882, and the NASDAQ ahead 28.65^% to 19,311. In Canada – the TSX gained 17.99^% to 24,728 and the TSX Venture rose 8.14^% to 598. The CBOE Volatility Index or VIX gained 39.44^% to 17.36.

With currencies – the Canadian dollar fell 7.83^% to US$0.6956, while the U.S. dollar Index ‘DXY’ gained 7.03^% to 108.45.   

With commodities – gold bullion gained 27.19^% to US$2,624, as silver rose 21.49^% to US$28.89, and copper gained 2.58^% to US$3.98, while lithium fell 24.48^% to US$10,228. Crude oil rose 0.59^% to US$71.74, and natural gas gained 45.78^% to US$3.63, while uranium lost 21.59^% to US$71.35. With soft commodities – lumber gained 1.29^% to US$550.

Overall – the CRB Commodities Index rose 18.60^% to 357.

Back to the week – Trican Well Services Ltd. ‘TCW-T’ stock rose to a new 18-year closing high of $5.33.

This as the influential Baker Hughes Petroleum Rig Count reported the number of active American drilling rigs was unchanged in the past week at 589, down by 32-rigs from this time last year. Up north – the number of Canadian active rigs fell by 1-rig to 94, down by 31-rigs from one year ago.  

The CRB Commodities Index rose to close at a new 13^½-year high of 360.

Uranium and crude oil were the commodities with the greatest gains on the week, while lumber and lithium were off the most.

The Canadian Loonie fell to retest a recent 9-year closing low of US$0.6921.

Meanwhile – the often-forgotten TSX Venture Exchange ended the week at a new 1^½-year closing high of 623.

While all of the North American equity markets rallied on Friday, only the two Canadian exchanges were positive for the week.

For the Week – the DJI lost 0.60^% to 42,732, with the S&P 500 off 0.49^% to 5,942, and the NASDAQ down 0.51^% to 19,622. Across the line – the TSX gained 1.12^% to 25,074 and the TSX Venture rose 4.18^% to 623. The CBOE Volatility Index or VIX gained 1.13^% to 16.13

With currencies – the Canadian dollar fell 0.22^% to US$0.6921, while the U.S. dollar Index ‘DXY’ gained 0.83^% to 108.92.   

With commodities – gold bullion rose 0.84^% to US$2,638, as silver gained 1.40^% to US$29.61, while copper lost 0.98^% to US$4.04, and lithium fell 1.64^% to US$10,179. Crude oil gained 5.43^% to US$74.04, while natural gas lost 1.17^% to US$3.41, and uranium rose 6.57^% to US$74.60. With soft commodities – lumber fell 4.08^% to US$541.

Overall – the CRB Commodities Index rose 2.86^% to 360.