BLOODBATH at MP Materials and Standard Lithium! Globex Mining benefits from diversification!

Globex Mining: Diversified exposure to the commodities boom

Globex Mining's share price has gained around 35% since the end of August, showing significantly lower volatility than traditional commodity players such as MP Materials or Standard Lithium. As a mining incubator, Globex Mining provides broad diversification across resource exploration. The Company holds interests in over 250 projects in North America – about half of which are in the precious metals sector, including gold, silver, platinum, and palladium. This extensive portfolio also ensures a steady, continuous news flow.

Globex is also involved in antimony. It was recently announced that Bryah Resources has discovered extremely high-grade antimony and gold samples at the Golden Pike project leased by Globex in New Brunswick, Canada. Globex emphasized the rarity and high grades of the antimony and gold deposits in this region, which is considered geologically unique in Canada. Rock samples yielded grades of 27.6% Sb and 54.0% Sb (or 1.61 g/t Au), while an existing soil anomaly was confirmed over a length of 320 meters. In addition, assays from new quartz veins with up to 9.48 g/t gold were analyzed in the nearby Vail Road gold area. A historical 2013 resource estimate reported 270,500 tonnes averaging 9.39 g/t gold (inferred).

Globex also provided an update on the Mont Sorcier project, where it holds a 1% iron ore royalty interest. Project operator Cerrado Gold has completed a 17,000-meter infill drilling program to upgrade the resource to the "proven" and "probable" categories and to present a feasibility study by the second quarter of 2026. The updated results are expected to confirm or improve upon the published preliminary economic assessment (PEA), which had assigned the project a value of USD 1.6. New tests show that a high-purity, direct-reduction iron (DRI) concentrate with over 67% Fe can be produced – a key raw material for the decarbonization of the steel industry. Located on Cree territory near Chibougamau, the project aims to deliver a high-quality iron product at low operating costs over the long term, thereby benefiting from the growing trend toward "green steel."

US and China battle over rare earths and critical metals

China has regularly tightened its export controls on rare earths and related technologies in recent years. This is causing global unrest. The 17 elements are repeatedly subject to strict export licenses. Equipment and processes for magnet production are also under supervision. Beijing justifies the measures on the grounds of national security, but Western governments see them as a strategic means of exerting pressure. This is because China not only dominates production, but also around 90% of the global processing capacity for these metals, which are indispensable for e-mobility, armaments, semiconductors, and renewable energy. The US and its partners are reacting sensitively. The Trump administration spoke of "economic blackmail" and announced plans to rapidly expand its own supply chains, including through new mining projects in the US, Canada, and Australia.

Ahead of the upcoming summit between US President Donald Trump and Chinese President Xi Jinping, the issue is expected to play a central role. Observers see the tightened controls as a deliberate signal from Beijing ahead of the talks to force trade concessions. Washington is likely to push for reliable export licenses in return, especially for civilian applications.

MP Materials and Standard Lithium: Bloodbath within days

Over the weekend, reports emerged of a possible agreement between the United States and China on critical metals. This triggered a sell-off across the rare earths, lithium, and broader critical metals sector in recent days. MP Materials shares, for example, had reached an all-time high of EUR 91 last week and have since plunged to EUR 55. Despite this sharp correction, the stock remains up more than 200% year-to-date.

Standard Lithium also suffered a heavy setback. Last Thursday, the stock was still trading above EUR 5 – in July, it was less than EUR 2. By Tuesday, the price had fallen to EUR 3.29. Opportunities and heavy price losses lie close together.

The bloodbath among stocks in the sector is not entirely surprising. The previous price gains were likely somewhat exaggerated. However, even with a diplomatic rapprochement, experts do not foresee a lasting easing of tensions. The dispute over rare earths is viewed as a symbol of the deeper systemic rivalry between the world's two largest economies – and could ultimately lead to a geopolitical realignment of global commodity markets.

Commodity stocks are correcting. However, this is likely to be only a temporary pause. Gold should continue to benefit from rising global government debt, while critical metals will remain key leverage points in geopolitics. With Globex Mining, investors are diversifying their risk exposure within this megatrend. Recent days have shown that the risk profiles of MP Materials and Standard Lithium are quite different - and investors should take note.