SERVICE DISRUPTION

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Letter from the CEO

By: Bruce Tatters CEO, Red Cloud Securities Inc.

PRECIOUS METALS PARADIGM SHIFT

Gold and Silver Commodity Paradigm Shift

In our Spring 2025 Pre-PDAC conference article titled GAME ON, we noted that gold prices had surged past US$2,900/oz for the first time, leading the commodity charge. At that time, senior producer equities were up over 25%, while junior producers, developers, and explorers were just beginning to lift from their multi-year lows. Fast forward to today: gold prices have soared above US$4,000/oz. (+60% YTD), senior producer stocks have doubled (+100% YTD), and junior producers, developers, and explorers have seen multiples of these gains. Silver, which trailed gold earlier this year, has surged ahead, with both commodity prices and equities outperforming. Financing markets for junior precious metals are now wide open. Despite these impressive returns, stocks need time to fully reflect this new commodity price environment. Persistent concerns about price corrections will fade only as prices stabilize at current levels or move higher. Further commodity price increases are not necessary for continued returns—sustained prices alone will drive value. This moment marks a paradigm shift in commodity markets, where previously uneconomic projects become highly profitable. Junior producers, developers, and explorers offer the greatest opportunities as this shift plays out through market revaluations or mergers and acquisitions (M&A).

Critical Minerals and Base Metals

In 2025, critical minerals and base metals have diverged significantly. Rare earths stand out due to trade tensions, with U.S. policies prompting China to threaten rationing of rare earth supplies. This has exposed global dependency on China, making rare earth stories the “unicorns” of the junior resource space. Base metals, meanwhile, remain stable, as we predicted earlier this year. Copper continues to demand close attention. Despite economic and trade uncertainties in the U.S., the growing power demands of AI and ongoing electrification trends underscore copper’s critical role. Persistent supply disruptions combined with rising consumption set the stage for a potential pricing Supercycle by 2030. Uranium follows closely behind copper, driven by the nuclear energy renaissance. A few years ago, developed nations raced to decommission nuclear facilities; today, idled capacity is being reactivated, and new brownfield and greenfield projects are accelerating. While this excitement has yet to fully reach uranium developers and explorers, it will mirror the trickle-down effect seen in precious metals this year.

Lithium Market Outlook

We called a lithium market bottom in early 2025, and it has materialized. Prices have rebounded significantly from their lows, though they remain unexciting. Long-term fundamentals for lithium are robust, with projected consumption growth among the highest of all commodities. Like rare earths, lithium production is heavily concentrated in China, warranting ongoing close surveillance.

Red Cloud’s Commitment to the Sector

Red Cloud remains dedicated to the junior mining sector, which we see as the backbone of supply growth across these markets. We are committed to supporting junior explorers, developers, and producers through innovative products and services. Our team continues to grow, expanding our distribution network, enhancing research capabilities, and introducing new services to better serve our partners and investors. We hope you enjoy the conference. The Red Cloud team works tirelessly to make each event better than the last and is here to assist you in any way we can.

Bruce Tatters, CFA

Chief Executive Officer

Mr. Tatters joined Red Cloud in 2018, bringing more than 24 years of senior capital markets leadership. Mr. Tatters was the co-founder at both Triumph Asset Management as Chief Investment Officer and Westwind Partners as Managing Director, Institutional Equities. Prior to that, Mr. Tatters was Global Co-Head of Institutional Equity Sales at National Bank Financial (successor to First Marathon Securities). At First Marathon Securities, he spent six years as an Institutional Equity Salesperson and two years in equity research. Mr. Tatters began his career in equity research at Burns Fry Ltd. Mr. Tatters holds a CFA designation and a bachelor’s degree in Economics from the University of Western Ontario. 

Michael Mackasey

Chairman

Mr. Mackasey has over 40 years’ experience in the capital markets, having held senior positions at both Canadian and international investment banks, most recently as Vice Chairman at Macquarie Capital Markets Canada. Mike has provided advice to and has managed financings for a great number of corporations, both large and small. Mike has a long history in financing emerging resource companies and is very cognizant of both the challenges and opportunities that they face.

In addition to his role in the capital markets, Mike acted as Chair of the Board of the Canada Development Investment Corporation (CDEV) a federal Crown Corporation charged with managing the commercial assets of the Government of Canada

Mike has a B.Comm from McGill University and an MBA from the Ivey School of Business. He also holds a Diploma from the Institute of Corporate Directors (ICD.D).

Bob Sellars

Senior Vice President and Chief Financial Officer

Robert (Bob) Sellars joined Red Cloud in June 2021, bringing more than 40 years of experience in capital markets and financial services to the table, including his significant roles on investment industry committees within IIROC . For 21 years Mr. Sellars served as Chief Financial Officer & Executive Vice President for Dundee Corp. and Dundee Securities and is known for his tenure as First Marathon’s CFO for over a decade; among other C-Suite roles in the sector during his career. Mr. Sellars is a Chartered Professional Accountant (CPA), Chartered Accountant (CA), Chartered Financial Analyst (CFA) and received an MBA from the University of Windsor.