Portfolio Performance Overview
The Critical Minerals Portfolio experienced a mixed week. Tivan Limited (TNGZF) led with a 24.25% return since its first quote, while Neo Performance Materials (NOPMF) added 16.34%. However, most holdings declined, with Vulcan Energy (-17.02%), Energy Fuels (-16.07%), and MP Materials (-15.36%) among the laggards. The portfolio’s thematic focus on critical minerals remains intact, but near-term headwinds from weak commodity prices and geopolitical uncertainty have weighed on sentiment.
Key Decisions
Close Iluka Resources (ILKAF): Iluka’s -4.66% return reflects deteriorating fundamentals. The company’s zircon and rare earths operations face weak demand from ceramics and electronics, while cost pressures persist. The thesis of benefiting from rare earth supply chain diversification has not materialized, and the stock’s OTC liquidity is poor. We recommend closing to reallocate capital.
Close Tivan Limited (TNGZF): Tivan has surged 24.25% on speculative interest in its vanadium and titanium projects. However, the company has not yet secured project financing, and the stock is overextended. Locking in gains reduces concentration risk in Australian small-caps and provides dry powder for future opportunities.
Remaining Positions
All other holdings remain open. Protected positions (Energy Fuels, MP Materials, Lynas Rare Earths, Neo Performance, Vulcan Energy, SQM) are held for the long term, aligned with the critical minerals theme. We continue to monitor lithium and rare earth prices, as well as policy developments in the US and EU.
What to Watch
- Lithium prices: Weak demand from China has pressured Albemarle and Sigma Lithium. Watch for production cuts or policy support.
- Rare earths: MP Materials and Lynas are key beneficiaries of US-China decoupling. Monitor quarterly earnings for margin trends.
- Geopolitics: Any escalation in trade tensions could boost critical minerals stocks.
Disclaimer: This is not investment advice. Past performance is not indicative of future results. All investments carry risk, including loss of principal. Consult a financial advisor before making investment decisions.