5 Non-Ferrous Metal Mining Stocks to Watch in a Challenging Industry

About the Industry

The Zacks Mining - Non Ferrous industry comprises companies that produce non-ferrous metals, including copper, gold, silver, cobalt, molybdenum, zinc, aluminum and uranium. These metals are used by various industries, including aerospace, automotive, packaging, construction, machinery, electronics, transportation, jewelry, chemical and nuclear energy. Mining is a long, complex and capital-intensive process. The actual mining operations are preceded by significant exploration and development to evaluate the size of the deposit. The process is followed by the assessment of ways to extract and process the ores efficiently, safely and responsibly. Miners seek opportunities to grow their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets internally and through acquisitions.

What's Shaping the Future of the Mining - Non Ferrous Industry?

Favorable Metal Price Trends Drive Growth: Copper futures are currently above $6.60 per pound, near record highs and up 50.7% in a year, supported by tight global supply and strong demand. Imports to the United States have surged, ahead of an expected decision by the Trump administration on copper import tariffs. Global copper inventories have declined as shipments to China have risen to ease a domestic supply shortage. Copper also remained supported by its strong long-term demand outlook, driven by the global transition to clean energy and the rapid expansion of Artificial Intelligence data centers. Gold prices are gaining and approaching $4,200 per ounce as prospects of cooling U.S-Iran tensions have eased inflation concerns and lowered expectations of interest rate hikes. Gold prices are up 23.4% in a year. This has also led to recent gains in silver, with prices at around $61 an ounce, up 61.7% in a year. Uranium futures are around $85 per pound, up 20.8% in a year, backed by long-term nuclear power demand.

Labor Shortage, High Costs Remain Worrisome: The industry has been facing a shortage of skilled workforce lately, which has hiked wages. Labor-related disputes can be damaging to production and revenues. Industry players are grappling with escalating production costs, including electricity, water and materials, as well as higher freight expenses and supply-chain issues. Since the industry cannot control the prices of its products, it focuses on improving the sales volume, increasing the operating cash flow and lowering unit net cash costs. Industry participants are opting for alternate energy sources to minimize fuel-price volatility and secure supply. Miners are now committed to cost-reduction strategies and digital innovation to drive operating efficiencies.
 
Long-Term Demand Trends Support Growth: Demand for non-ferrous metals is expected to remain robust, driven by their critical role in transportation, infrastructure, renewable energy, telecommunications and technology. Growth in electric vehicles, clean energy projects and infrastructure upgrades is expected to support demand for metals such as copper and nickel. Uranium demand is gaining momentum as countries prioritize carbon reduction, electrification and rising power needs from AI and data centers. Rare earth elements are becoming increasingly important due to their use in EVs, wind turbines, robotics, electronics and defense applications. Silver demand is also benefiting from industrial uses, particularly solar energy, while digitalization and AI are creating additional growth opportunities. Gold continues to benefit from its safe-haven appeal, rising central bank purchases and increasing demand from technology, healthcare and energy applications.

Zacks Industry Rank Indicates Bleak Prospects

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull prospects for the near term. The Zacks Mining - Non Ferrous industry, a nine-stock group within the broader Zacks Basic Materials Sector, currently carries a Zacks Industry Rank #185, which places it in the bottom 24% of 245 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and its valuation picture.

Industry Versus S&P 500 & Sector

The Zacks Mining- Non Ferrous Industry has outperformed its sector and the Zacks S&P 500 composite over the past 12 months. The stocks in this industry have collectively gained 63.4% in the past year compared with the Zacks Basic Materials sector’s growth of 23.2%. The S&P 500 has risen 23.8% in the said time frame.

One-Year Price Performance

Industry's Current Valuation

Based on the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing Mining- Non Ferrous stocks, we see that the industry is currently trading at 13.73X compared with the S&P 500’s 17.59X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 12.91X. This is shown in the charts below.

Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)

Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)

Over the past three years, the industry has traded as high as 17.84X and as low as 3.95X, the median being 9.34X.

5 Mining - Non Ferrous Stocks to Keep an Eye on

Energy Fuels: The company is expanding its uranium operations while building a presence in the rare earth element (REE) market, backed by its solid balance sheet. The company is pursuing strategic acquisitions to broaden its resource base, strengthen its position across the rare earth value chain and diversify revenue streams. The planned acquisition of Australian Strategic Materials is expected to enhance its capabilities in REE metals and alloys, while that of Germany-based VAC Group will make it a fully integrated rare earths and magnetics company. Its uranium growth strategy is supported by projects such as Nichols Ranch ISR and Whirlwind, which could collectively add up to 500,000 pounds of annual uranium production. Additionally, the Roca Honda, Bullfrog and Sheep Mountain projects hold nearly 70 million pounds of uranium resources, providing long-term growth potential. Construction is underway on an expansion of its White Mesa Mill in Utah, which currently has the capacity to produce up to 1,000 tonnes per annum (tpa) of separated NdPr oxide. The expansion will enable production of key heavy rare earth oxides, including terbium, dysprosium, samarium, europium and gadolinium, catering to demand from the automotive, robotics, data center, energy and defense sectors. By 2029, the company plans to further expand capacity to 6,294 tpa of NdPr oxide, 80 tpa of terbium oxide and 288 tpa of dysprosium oxide.

The Zacks Consensus Estimate for UUUU’s earnings for fiscal 2026 has remained unchanged over the past 60 days and is currently pegged at a loss of 14 cents per share. It suggests an improvement from the loss of 38 cents reported a year ago. The Lakewood, CO-based company currently carries a Zacks Rank #2 (Buy). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price & Consensus: UUUU

Lundin Mining: The company’s strategic vision is to become a top-ten global copper producer. It has set a long-term target to reach annual production of more than 500,000 tonnes of copper and 550,000 ounces of gold. This will be aided by successful execution of expansion opportunities at Candelaria, Caserones and Chapada as well as development for the Vicuña district. Lundin Mining holds a 50% interest in the Vicuña Project, comprised of the Filo del Sol and Josemaria deposits. The recently published integrated technical report outlines it as a Tier 1 asset that has the potential to rank among the top five copper, gold, and silver mines globally once in production. The company continues to advance the project in preparation for a sanctioning decision by the end of the year.

The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2026 earnings indicates a year-over-year improvement of 67.5%. The estimate has moved up 13.6% over the past 60 days. It has a long-term estimated earnings growth rate of 18.4%. The company currently carries a Zacks Rank of 2.

Price & Consensus: LUNMF

Southern Copper: The company has the largest copper reserve in the industry and operates world-class assets in investment-grade countries, such as Mexico and Peru. SCCO expects to produce 917,000 tons of copper in 2026. Southern Copper expects to take this up to roughly 1.6 million tons by 2035, implying a compound annual growth rate (CAGR) of approximately 5.3% from 2025 levels. To support this growth plan, the company intends to invest more than $20.5 billion over the next decade, with the bulk of the capital allocated to projects in Peru. Key growth catalysts include the Tía María, Los Chancas and Michiquillay projects in Peru, along with El Pilar and El Arco in Mexico, all of which underpin SCCO’s long-term expansion pipeline. Given its constant commitment to increasing low-cost production and growth investments, SCCO is well-poised to continue delivering an enhanced performance. 

The Zacks Consensus Estimate for the Phoenix, AZ-based company’s fiscal 2026 earnings indicates year-over-year growth of 45.6%. The estimate has moved up 5.2% over the past 60 days. The company has a trailing four-quarter earnings surprise of 6.3%, on average. SCCO has a long-term estimated earnings growth rate of 15.2% and currently carries a Zacks Rank #3 (Hold).

Price & Consensus: SCCO

Freeport-McMoRan: The company remains well-positioned for growth, supported by its high-quality copper assets, large reserve base and strong organic expansion opportunities in the United States. Its organic project pipeline contains the Bagdad expansion, Safford/Lone Star Expansions and the Kucing Liar project. FCX is also deploying the latest technologies and data analytics in its leaching processes across its North America and South America operations. Incremental copper production from these initiatives totaled 214 million pounds in 2025. The company is targeting an annual run rate of 300 million pounds by this year-end and subsequently 800 million pounds annually by 2030. In addition, FCX is leveraging automation, new technologies and analytics to enhance operating efficiencies while lowering costs and capital intensity across existing operations and future projects.

The Zacks Consensus Estimate for FCX’s earnings for fiscal 2026 indicates year-over-year growth of 55.4%. The estimate has moved up 8% over the past 60 days. FCX has a trailing four-quarter earnings surprise of 32.6%, on average. It has a long-term estimated earnings growth rate of 36.2%. The Phoenix, AZ-based company currently carries a Zacks Rank of 3.

Price & Consensus: FCX

Ero Copper: The company is unlocking value through organic brownfield projects and optimizations across its operations. At Caraiba, the external shaft project expected in 2027 will provide access to the high-grade “Deep” zone at the Pilar mine, allowing for increased ore production, multiple working areas and reduced ore haulage requirements and costs. At Xavantina, the transition to fully mechanized mining allows for faster underground development rates, enabling increased operational flexibility and ore production while enhancing health and safety initiatives. At Tucumã, continued ramp-up is unlocking production growth. The company is developing the Furnas Copper-Gold Project in the world-class Carajás mineral province of Pará State, Brazil. Under a five-year earn-in agreement, Ero Copper is responsible for drilling and delivering a scoping study, pre-feasibility study and feasibility study, leading to a potential investment decision. The project benefits from its location in an established mining area with access to paved roads, railways and existing power infrastructure.

The Zacks Consensus Estimate for the Vancouver, Canada-based company’s fiscal 2026 earnings indicates year-over-year growth of 90.6%. The estimate has moved up 2% in the past 60 days. The company has a trailing four-quarter earnings surprise of 8.9%, on average. ERO currently carries a Zacks Rank of 3.

Price & Consensus: ERO

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