Oct. 12, 2025 at 9:40 AM ET6 min read

Trump Administration’s Stake in Critical Metals Propels Shares Upward

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Critical Metals Corp’s stocks have been trading up by 12.85 percent, amid plans to expand lithium output boosting investor confidence.

Latest Developments Propel Market Moves

  • Shares surged over 70% in pre-market trading. The catalyst was a Reuters report noting the Trump administration’s consideration of an equity stake to secure the Tanbreez rare earth deposit in Greenland.

Materials industry expert:

Analyst sentiment – positive

Critical Metals Corp. (CRML) holds a precarious position in the market, evidenced by its stark financial metrics. With a leverage ratio of 1.9 and a long-term debt to capital of 0.14, CRML displays moderate financial leverage but remains burdened with liabilities exceeding its total payables. Despite possessing significant assets totaling $171 million, the company’s profitability metrics are concerning, with negative ROIC of -117% and zero returns on both assets and equity. Its revenues, though paltry at $560,623, paint a picture of a developing company not yet in a matured growth phase. The disparity between its enterprise value ($1.6 billion) and low revenue signals market speculation rather than solid operational performance driving valuation.

From a technical standpoint, CRML’s stock movement indicates a strong bullish trend. The recent surge from an open of $11.41 to a close of $16.5995 shows vigorous buying interest, highlighted by sharp daily price gains between October 8 and October 10. With a high volume of activity following news releases, the recent price action suggests potential resistance forming around $17.00, while the $14.00 mark offers a promising support level. Investors might consider capitalizing on any pullbacks towards $14.00 or setting trailing stops to ride the bullish momentum toward new peaks, contingent on sustaining breaks above $17.00.

Significant recent developments bolster Critical Metals’ position, including a 10-year offtake agreement with REalloys, capturing 15% of the Tanbreez Project output. The U.S. administration’s interest in acquiring a stake magnifies its strategic importance in reducing China’s grip on rare earths. Coupled with a successful $35 million capital raise, CRML’s financial and strategic maneuvers suggest robust future potential. Comparatively, the material and mining sectors perceive these moves favorably, and if sustained, CRML could outperform benchmarks. Aligning immediate resistance near $17 with adjusted support at $14, the stock’s prospects appear bullish, promising gains should favorable catalysts persist.

  • Recent agreements with REalloys are shaping business trajectories, securing 15% production offtake from the Tanbreez Project for a decade. This strategy reduces reliance on China’s rare earth supply.

  • Equity stake discussions accelerated stock movement beyond expectations, with a tremendous 42% increase following Trump administration involvement news.

  • A $35 million funding round announcement added to market enthusiasm, positively impacting investor sentiment and bolstering share values.

Candlestick Chart

More Breaking News

Weekly Update Oct 06 – Oct 10, 2025: On Sunday, October 12, 2025 Critical Metals Corp. stock [NASDAQ: CRML] is trending up by 12.85%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Financial analysis showcases a mixed bag for Critical Metals Corp, starring significant events and market responses. The company’s stock has experienced notable fluctuations, reflective of both investor sentiment and strategic maneuvers. For instance, on October 6, its shares opened at $11.41 and closed at $11.31. By October 10, it closed at an impressive $16.5995, highlighting notable upward momentum influenced largely by recent government-related news.

Revenue metrics indicate a lean structure with net revenue at just over $560,000, and revenue per share at $0.0052. Yet, the enterprise holds market promise through an innovative expansion strategy, bolstered by its large-scale Tanbreez project. Valuation measures such as the enterprise value at over $1.6 billion and a price to sales ratio of 2,856.41 showcase the company’s elevated market perception, driven by initiatives like the REalloys offtake agreement.

Analyzing financial reports, Total Assets stood at $171 million as of June 30, 2025, indicating a robust foundation despite a working capital curse, as demonstrated with negative figures nearing $56 million. Debt metrics reveal moderate gearing—total debt to equity at 0.14—providing some balance amid an environment requiring considerable capital commitment for development.

With recent upward market swings and overall increased equity focus, this could enhance investor confidence, particularly as strategic U.S. government engagement presents a geopolitically competitive edge in the rare earths arena.

Conclusion

In conclusion, Critical Metals Corp.’s recent momentum stems from astute strategic calls, demonstrating an upward trajectory heavily influenced by governmental alliances and market positioning maneuvers. While there are inherent risks associated with rare earth markets—typified by intense competition and market volatility—CRML is decisively carving a niche through visionary agreements and equity posturing. As Tim Bohen, lead trainer with StocksToTrade says, “Success in trading is more about cutting losses quickly than finding winners.” This philosophy resonates with CRML’s dynamic approach, mitigating risks while capitalizing on strategic opportunities.

Future watchers would do well to heed these developments, as further US involvement could signify a shift towards policy-backed industrial strategies. For stakeholders, the implications signify vital opportunities, as the company continues to harness its unique positioning within the burgeoning arena of critical minerals. With geopolitical narratives favoring secure supply lines, CRML’s projections prove worthy of trader intrigue. Decisions today may galvanize pathways to broader ascendancy within the evolving global landscape.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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