Market Performance - The S&P 500 Index closed up +0.62%, the Dow Jones Industrial Average up +0.99%, and the Nasdaq 100 up +0.94% on Tuesday [1] - Stock indexes rallied, with the S&P 500 and Dow posting record highs, and the Nasdaq 100 reaching a 1-week high [2] Sector Performance - Strength in chipmakers and data storage companies contributed to the broader market gains [2] - Mining stocks rallied as copper prices reached a new all-time high, driven by expectations of potential tariffs on refined copper by the Trump administration [2] Economic Indicators - US copper imports in December reached the highest level since July [2] - The December S&P services PMI was revised downward by -0.4 to 52.5 from the previously reported 52.9, indicating a slight contraction in services [4] Federal Reserve Commentary - Richmond Fed President Tom Barkin expressed a slightly hawkish outlook, anticipating tax cuts and deregulation to boost growth, while noting a delicate balance in monetary policy due to rising unemployment and high inflation [5] - Fed Governor Stephen Miran provided a dovish perspective, suggesting that over 100 basis points of rate cuts may be justified this year [5] Upcoming Economic Data - The market is focused on upcoming US economic news, including expected increases in ADP employment change (+48,000) and JOLTS job openings (+9,000 to 7.679 million) [5] - The December nonfarm payrolls are expected to increase by +59,000, with the unemployment rate anticipated to slip by -0.1 to 4.5% [5]

Core Insights - Copper has experienced a significant rally since October 2025, driven by supply disruptions at key mines, leading to record high prices for the metal [1][4]. Group 1: Copper Market Performance - The Sprott Copper Miners ETF (COPP) has benefited from the copper rally, providing exposure to both copper miners and physical copper, resulting in a year-to-date NAV increase of 26.05% as of December 31, 2025 [2][3]. Group 2: Supply and Demand Dynamics - Supply constraints for copper are expected to persist, with recent strikes at Capstone Copper's Mantoverde mine in Chile contributing to ongoing supply concerns [4]. - Macroeconomic factors, including U.S. tariffs and political actions in Venezuela, may exacerbate supply issues as 2026 progresses [5]. - Demand for copper is rising due to its critical role in various electrical applications across energy, defense, and technology sectors, suggesting a compelling supply-demand picture for 2026 [6].

Industry Overview - The U.S. capture of Venezuelan President Nicolas Maduro has significant implications for the oil and gas industry, particularly given Venezuela's vast oil reserves of 303 billion barrels, the largest in the world [1] - Modernizing Venezuela's energy infrastructure is projected to cost over $110 billion over the next decade, presenting both challenges and opportunities for investment [1] Government and Corporate Involvement - The U.S. government may need to finance part of the modernization efforts to attract major American oil and gas producers back to Venezuela, with President Trump indicating a willingness to consider such arrangements [2] - Meetings between leaders of oil firms and the Trump administration are expected to take place to discuss potential plans that benefit all stakeholders [2] Mineral Reserves and Investment Potential - In addition to oil and gas, Venezuela possesses significant untapped mineral reserves, including gold, copper, silver, and zinc, which could present further investment opportunities [3] - Newmont (NEM) has shown strong performance, ranking 78th on Barchart's Top 100 Stocks to Buy, with a stock price increase of over 180% in the past year, indicating potential for further growth [3] Financial Performance of Newmont - Newmont's cash flow from operations reached $9.22 billion for the trailing 12 months ending September 30, an increase from $8.57 billion in June and a 110% rise from $4.4 billion in September 2020 [5] - The company's free cash flow (FCF) for the same period was $6.12 billion, yielding an FCF margin of 28.5%, consistent with 2020 levels, although revenue generation per dollar of capital expenditure has decreased by 17% compared to 2020 [6] Valuation Metrics - Current valuation metrics for Newmont show that investor multiples are similar to those observed in September 2020, suggesting stability in investor sentiment despite market fluctuations [7]

Market Performance - European stocks closed higher, with the pan European Stoxx 600 climbing 0.58% and the U.K.'s FTSE 100 increasing by 1.18% [1] - Several European markets, including Austria, Belgium, and Spain, also recorded gains, while Iceland, Ireland, Poland, and Russia ended weak [2] Company Highlights - Next Plc shares surged 5% after upgrading profit guidance, forecasting after-tax earnings of 738.8 pence per share, driven by a more than 10% surge in sales in December [3] - In the UK market, Fresnillo climbed about 5%, while AstraZeneca, Burberry Group, and several others gained between 3% to 5% [2] - JD Sports Fashion drifted down 4.4%, and Adidas ended lower by about 4.2% following a rating downgrade by Bank of America [4] Sector Performance - In the German market, Daimler Truck Holding gained 5.3%, and Infineon moved up 5% [4] - In France, EssilorLuxottica gained more than 5%, while Edenred and Kering ended higher by about 4.3% and 4%, respectively [5] - Polish parcel locker company shares soared more than 28% after announcing an indicative buyout offer [6] Economic Indicators - The HCOB Composite PMI in Germany decreased to 51.3 in December from 52.4 in November [6] - France's inflation eased to a seven-month low in December, with the consumer price index logging an annual increase of 0.8% [7] - EU harmonized inflation slowed unexpectedly in December to 0.7% from 0.8% in November [8]

Group 1 - Cabral Gold Inc. has published a feature article on BNN Bloomberg, highlighting its operations and growth strategy in the gold market [1][2] - The company is focusing on the Cuiú Cuiú district in Brazil, with a fully funded near-term heap-leach production plan and ongoing district-scale drilling to expand its gold system [2] - Cabral Gold has defined three main gold deposits at the Cuiú Cuiú project, with indicated resources of 12.29 million tonnes at 1.14 g/t gold (450,200 ounces) in fresh basement material and 13.56 million tonnes at 0.50 g/t gold (216,182 ounces) in oxide material [4] Group 2 - The Tapajós Gold Province, where Cuiú Cuiú is located, is known for the largest gold rush in Brazil's history, producing an estimated 30 to 50 million ounces of placer gold from 1978 to 1995 [5] - Historically, Cuiú Cuiú was the largest area of placer workings in the Tapajós, producing approximately 2 million ounces of placer gold [5]

Core Insights - The resource investment market is experiencing strong momentum due to all-time high prices for gold, silver, and copper, with significant capital returning to hard assets [1] - The Vancouver Resource Investment Conference (VRIC) 2026 is set to take place on January 25-26, 2026, at the Vancouver Convention Centre West, attracting over 8,000 investors and industry professionals [2][6] Market Context - Persistent inflation, geopolitical shifts affecting supply chains, and increased government spending on energy and critical minerals are driving investors back to precious metals and hard commodities [3] - VRIC 2026 will provide direct access to key players in capital allocation and project development, essential for navigating the current market cycle [3] Event Highlights - The conference will feature over 120 keynote speakers, including prominent mining CEOs, investors, and commodity specialists, discussing various topics related to gold, silver, energy, uranium, and critical minerals [4] - Attendance is free for investors, but early registration is required due to limited spots, emphasizing the event's importance for networking and deal-making [6] Networking and Opportunities - VRIC 2026 will facilitate unmatched networking opportunities, connecting over 8,000 investors and industry professionals, from retail investors to institutional capital [7] - The event will showcase over 300 exhibiting companies, providing a platform to discover investable opportunities across precious metals, energy, and critical minerals [7]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Market Performance - Wall Street started 2026 positively, with large-cap indexes showing gains for three consecutive sessions, particularly the Dow Jones Industrial Average, which rose nearly 1% and reached record highs [1] - Major US indices performed as follows: Nasdaq 100 increased by 0.9%, S&P 500 by 0.6%, Dow Jones by 0.9%, and Russell 2000 by 0.2% [6] Commodity Prices - Gold prices rose for the third session, up 0.9% to $4,490 per ounce, while silver surged over 5% to exceed $80 per ounce due to supply shortages [2][1] - Copper prices increased by 1% to $6.07 per pound, setting new record highs [2] Mining and Memory Chip Stocks - Mining stocks gained alongside rising bullion prices, with the VanEck Gold Miners ETF and Global X Silver Miners ETF both up 3.7% [2] - Memory chip stocks saw significant increases: Sandisk Corp. rose by 24.6%, Western Digital Corp. by 15.8%, and Seagate Technology by 12.4%, driven by expectations of rising memory prices amid a global supply crunch [3] Company-Specific Movements - Albemarle Corp. shares increased by 10.7% after Jefferies raised its price target, citing stronger long-term demand related to energy storage and electric vehicles [3] - Tesla Inc. experienced a decline of over 4%, marking its eighth drop in nine sessions due to competitive pressures in the robotaxi market and market share losses in Europe [4] - Energy stocks lagged, with the Energy Select Sector SPDR Fund dropping 2.1% and Chevron Corp. falling nearly 4% after a previous rally [5] ETF Performance - The Vanguard S&P 500 ETF rose by 0.5% to $635.34, while the SPDR Dow Jones Industrial Average ETF increased by 0.9% to $493.63 [7] - The Materials Select Sector SPDR Fund outperformed, rising by 2.0%, contrasting with the Energy Select Sector SPDR Fund, which lagged [7]

Core Insights - Vale S.A (VALE) shares have increased by 46.9% over the past year, outperforming the Zacks Basic Materials sector's growth of 29.2% and the S&P 500's increase of 16.8% [1][4][5] Production and Guidance - Vale's iron ore production for 2025 is projected at approximately 335 million tons (Mt), at the high end of its target range of 325-335 Mt. Copper output is expected to be around 370 thousand tons (kt), also meeting the high end of its target of 340-370 kt. Nickel production is reported at 175 kt, within the target of 160-175 kt [11] - The company plans to increase iron ore production capacity to 335-345 Mt in 2026 and 360 Mt by 2030, with significant capital expenditures budgeted for the Iron Ore Solutions Business [12] Project Pipeline - Key projects such as Vargem Grande 1 (VGR1) and Capanema Maximization are expected to contribute significantly to production targets, with VGR1 adding 15 Mt per year and Capanema also contributing 15 Mt per year [13] - Additional projects like Compact Crushing at S11D and Serra Sul are set to start in the second half of 2026, further enhancing production capacity [13] Focus on Energy Transition Metals - Vale is investing in base metals to capitalize on the global energy transition, with capital expenditures planned at $1.6 billion in 2026 and $2 billion from 2027 onward. Copper production is expected to grow significantly, reaching 700 kt by 2035 [14][16] Cost Management - The company has successfully reduced fixed costs from $6.3 billion to $5.8 billion in 2025, with a target of $5.7 billion for the following year. Cost reductions of 6% in iron and copper businesses and 16% in nickel have been achieved [18] Earnings Estimates - The Zacks Consensus Estimate for Vale's fiscal 2025 earnings is $2.00 per share, indicating a year-over-year growth of 9.9%. The estimate for fiscal 2026 is $2.02, suggesting a 1.25% increase [19][20] Dividend and Valuation - Vale's current dividend yield stands at 6.93%, significantly higher than the sector's 2.01% and the S&P 500's 1.06%. The company plans to distribute $2.8 billion in dividends in 2026, including $1 billion as extraordinary dividends [25] - The company is trading at a forward price/sales ratio of 1.48X, which is a discount compared to the sector's 2.49X and lower than peers like Rio Tinto and BHP Group [26][28] Investment Outlook - Vale is positioned for sustained growth, driven by increasing iron ore demand, copper and nickel supported by energy transition, and a robust project pipeline. The company's cost discipline, attractive dividend yield, and improving earnings outlook strengthen its investment case [29]

Economic Indicators - The Dec ADP employment change is expected to increase by +48,000, while the Dec ISM services index is projected to slip -0.3 to 52.3 [1] - Nov JOLTS job openings are anticipated to climb by +9,000 to 7.679 million, and Oct factory orders are expected to decline by -1.1% m/m [1] - Q3 nonfarm productivity is expected to rise by +4.7%, with unit labor costs increasing by +0.3% [1] - Initial weekly unemployment claims are projected to increase by 12,000 to 211,000 [1] - Dec nonfarm payrolls are expected to increase by +59,000, with the unemployment rate slipping by -0.1 to 4.5% [1] - Dec average hourly earnings are expected to rise by 0.3% m/m and 3.6% y/y [1] - Oct housing starts are expected to increase by 1.4% m/m to 1.325 million, and building permits are expected to rise by 1.1% m/m to 1.350 million [1] - The University of Michigan's Jan consumer sentiment index is expected to climb by 0.6 points to 53.5 [1] Stock Market Performance - The S&P 500 Index is up +0.26%, the Dow Jones is up +0.27%, and the Nasdaq 100 is up +0.49% [5] - Chipmakers and data storage companies are leading the market higher, with Sandisk up more than +22% and Western Digital up more than +12% [10] - Mining stocks are also performing well, with copper prices reaching a new all-time high [4] - Stocks linked to data-center cooling are under pressure, with Modine Manufacturing down more than -14% [12] Bond Market - The 10-year T-note yield is up by +2 bp to 4.18%, influenced by rising inflation expectations [3][7] - European government bond yields are moving lower, with the 10-year German bund yield down -2.6 bp to 2.844% [8] International Markets - The Euro Stoxx 50 and Japan's Nikkei Stock 225 have reached new record highs, with increases of +0.22% and +1.32% respectively [6]