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4 Non-Ferrous Metal Mining Stocks to Watch in a Promising Industry
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The prospects of the Zacks Mining - Non Ferrous industry appear promising at the moment, backed by the upward trajectory in metal prices. The demand for non-ferrous metals is expected to be supported by the energy-transition trend, which will buoy the industry.
We suggest keeping a close eye on companies like Freeport-McMoRan Inc. (FCX - Free Report) , Coeur Mining (CDE - Free Report) , Centrus Energy (LEU - Free Report) and Ero Copper (ERO - Free Report) . These companies are strategically focused on building reserves, technological investments, cost control and enhancing production efficiency, positioning them well to capitalize on the industry's growth potential.
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 utilized 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. Significant exploration and development to evaluate the size of the deposit, followed by the assessment of ways to extract and process ore efficiently, safely and responsibly, precede the actual mining operations. Miners continuously 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?
Improving Metal Prices to Aid Industry: Copper prices have gained 23% so far this year, due to ongoing supply disruptions and lingering concerns over possible U.S. tariffs. Silver prices have gained 25% year to date, supported by rising economic and geopolitical uncertainties as well as solid demand amid expectations of a tight supply. Gold has also rallied 28% year to date, riding on the escalating tariff tensions and geopolitical uncertainties. Weak U.S economic data lifted both gold and silver safe haven demand, pushing silver to a 13-year high of $36.20 and gold to around $3,370 per ounce. Uranium prices have risen to $71.9 per ounce lately, at the highest level in more than three months. This has been fueled by the U.S. President Donald Trump signing executive orders to restore the United States’ global leadership in nuclear energy. Overall, industry players are dealing with depleting resources, declining supply in old mines and a lack of new mines. Development projects are inherently risky and capital-intensive. While demand has been strong, there will be an eventual deficit in metal supply, leading to a situation that will bolster metal prices. This, in turn, will favor the industry in the long run.
Efforts Underway to Sustain Margins Amid High Costs: The industry has been facing a shortage of skilled workforce lately, which has hiked wages. Industry players have also been 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 sales volumes, increasing operating cash flows 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.
Strong Demand to Support Industry: The demand for non-ferrous metals will remain high in the future, given their wide use in primary sectors, including transportation, electricity, construction, telecommunication, energy and information technology. The demand for electric vehicles and renewable energy is expected to be a significant growth driver for metals like copper and nickel in the years to come. The plan to overhaul and upgrade the nation’s infrastructure, and promote green policies, per the U.S. Infrastructure Investment and Jobs Act, will also require a massive amount of non-ferrous metals.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright prospects for the near term. The Zacks Mining - Non Ferrous industry, an 11-stock group within the broader Zacks Basic Materials Sector, currently carries a Zacks Industry Rank #63, which places it in the top 25% of 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
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 underperformed its sector and the Zacks S&P 500 composite over the past 12 months. The stocks in this industry have collectively declined 17.7% in the past year compared with the Zacks Basic Materials sector’s dip of 3.6%. The S&P 500 has grown 11% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month EV/EBITDA ratio, a commonly used multiple for valuing Mining- Non Ferrous stocks, we see that the industry is currently trading at 8.13X compared with the S&P 500’s 24.66X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 7.63X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Over the last five years, the industry traded as high as 8.38X and as low as 7.92X, the median being 8.23X.
5 Mining - Non Ferrous Stocks to Keep a Tab on
Centrus Energy: The company currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040. Centrus Energy is pioneering the development of a high-performance nuclear fuel component called High-Assay, Low-Enriched Uranium (HALEU), which is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity. Under the HALEU Operation Contract with the Department of Energy (DOE), it had delivered 670 kilograms of HALEU as of March 25. On Nov. 5, 2024, the HALEU Operation Contract was modified to extend the Phase 2 period of performance to June 30, 2025. DOE has also increased the Phase 2 contract value and related funding to $152.3 million. HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity.
Headquartered in Bethesda, MD, Centrus is a globally recognized supplier of Low-Enriched Uranium fuel. The Zacks Consensus Estimate for fiscal 2025 earnings has moved up 85.8% over the past 60 days. LEU has a trailing four-quarter earnings surprise of 273%, on average. The company currently sports a Zacks Rank #1 (Strong Buy).
Coeur Mining: The buyout of SilverCrest Metals Inc. in February 2025 positioned Coeur Mining as a significant global silver company, with around 56% of revenues coming from the United States-based operations and 40% from silver. The acquisition added SilverCrest's high-grade, low-cost Las Chispas underground mine in Sonora, Mexico, into Coeur Mining's portfolio, improving its cost and margin profile The company reported silver production of 3.7 million ounces in first quarter of 2025, which was 44% higher year over year, driven by the newly expanded Rochester operation and a partial quarter of contribution from the newly acquired Las Chispas mine. Backed by solid contributions from CDE’s five North American operations, the company remains on track to deliver guided 2025 production of 380,000 - 440,000 ounces of gold and 16.7 - 20.3 million ounces of silver.
This Chicago, IL-based company explores, develops and produces gold, silver, zinc and lead properties, with five operations in the United States, Mexico and Canada. The Zacks Consensus Estimate for CDE’s fiscal 2025 earnings indicates year-over-year improvement of 267%. The consensus estimate has moved up 29% over the past 60 days. The company currently carries a Zacks Rank #2 (Buy).
Price & Consensus: CDE
Ero Copper: The company has been progressing with its strategic initiatives, which will drive significant near-term growth. The Tucumã Operation remains on track to achieve commercial production in the first half of this year, following the successful completion of repairs to and commissioning of the third tailings filter in April 2025. At the Caraíba Operations, the company achieved targeted mining rates at the Pilar Mine in March 2025 and completed mobilization of a second underground development contractor during the quarter. These initiatives are expected to support sequential growth in production through the rest of the year. At the Xavantina Operations, ongoing investments in mine modernization and mechanization will drive increases in mined and processed volumes through the remainder of the year. Gold grades are also expected to improve, supporting higher production levels and lower unit costs. The company is likely to deliver a record copper production in 2025, while investing in innovation and operational flexibility to improve margins, and advancing long-term value creation at Furnas.
The Zacks Consensus Estimate for the Vancouver, Canada-based company’s fiscal 2025 earnings indicates year-over-year growth of 165%. The estimate has moved up 3% in the past 30 days. The company has a trailing four-quarter earnings surprise of 28.9%, on average. ERO currently carries a Zacks Rank #3 (Hold).
Price & Consensus: ERO
Freeport-McMoRan: The company's efforts to expand reserves through exploration near existing mines will fuel growth. At Cerro Verde, a large-scale concentrator expansion provided incremental annual production of around 600 million pounds of copper and 15 million pounds of molybdenum. It is evaluating a large-scale expansion at El Abra in Chile to define a large sulfide resource that could support a major mill project similar to the large-scale concentrator at Cerro Verde. Also, PT Freeport Indonesia (PT-FI) substantially completed the construction of the new greenfield smelter in Eastern Java during 2024, with an expected start-up in second-quarter 2025, followed by a full ramp-up by the end of 2025. It is also developing the Kucing Liar ore body within the Grasberg district with a targeted commencement of production by 2030. The company’s focus on cost management and lowering debt levels is commendable.
The Zacks Consensus Estimate for the company’s earnings for fiscal 2025 has moved up 2% over the past 30 days. The estimate indicates year-over-year growth of 11.5%. FCX has a trailing four-quarter earnings surprise of 10.5%, on average. It has a long-term estimated earnings growth rate of 30.6%. The Phoenix, AZ-based company currently carries a Zacks Rank of 3.
Price & Consensus: FCX
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4 Non-Ferrous Metal Mining Stocks to Watch in a Promising Industry
The prospects of the Zacks Mining - Non Ferrous industry appear promising at the moment, backed by the upward trajectory in metal prices. The demand for non-ferrous metals is expected to be supported by the energy-transition trend, which will buoy the industry.
We suggest keeping a close eye on companies like Freeport-McMoRan Inc. (FCX - Free Report) , Coeur Mining (CDE - Free Report) , Centrus Energy (LEU - Free Report) and Ero Copper (ERO - Free Report) . These companies are strategically focused on building reserves, technological investments, cost control and enhancing production efficiency, positioning them well to capitalize on the industry's growth potential.
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 utilized 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. Significant exploration and development to evaluate the size of the deposit, followed by the assessment of ways to extract and process ore efficiently, safely and responsibly, precede the actual mining operations. Miners continuously 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?
Improving Metal Prices to Aid Industry: Copper prices have gained 23% so far this year, due to ongoing supply disruptions and lingering concerns over possible U.S. tariffs. Silver prices have gained 25% year to date, supported by rising economic and geopolitical uncertainties as well as solid demand amid expectations of a tight supply. Gold has also rallied 28% year to date, riding on the escalating tariff tensions and geopolitical uncertainties. Weak U.S economic data lifted both gold and silver safe haven demand, pushing silver to a 13-year high of $36.20 and gold to around $3,370 per ounce. Uranium prices have risen to $71.9 per ounce lately, at the highest level in more than three months. This has been fueled by the U.S. President Donald Trump signing executive orders to restore the United States’ global leadership in nuclear energy. Overall, industry players are dealing with depleting resources, declining supply in old mines and a lack of new mines. Development projects are inherently risky and capital-intensive. While demand has been strong, there will be an eventual deficit in metal supply, leading to a situation that will bolster metal prices. This, in turn, will favor the industry in the long run.
Efforts Underway to Sustain Margins Amid High Costs: The industry has been facing a shortage of skilled workforce lately, which has hiked wages. Industry players have also been 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 sales volumes, increasing operating cash flows 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.
Strong Demand to Support Industry: The demand for non-ferrous metals will remain high in the future, given their wide use in primary sectors, including transportation, electricity, construction, telecommunication, energy and information technology. The demand for electric vehicles and renewable energy is expected to be a significant growth driver for metals like copper and nickel in the years to come. The plan to overhaul and upgrade the nation’s infrastructure, and promote green policies, per the U.S. Infrastructure Investment and Jobs Act, will also require a massive amount of non-ferrous metals.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright prospects for the near term. The Zacks Mining - Non Ferrous industry, an 11-stock group within the broader Zacks Basic Materials Sector, currently carries a Zacks Industry Rank #63, which places it in the top 25% of 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
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 underperformed its sector and the Zacks S&P 500 composite over the past 12 months. The stocks in this industry have collectively declined 17.7% in the past year compared with the Zacks Basic Materials sector’s dip of 3.6%. The S&P 500 has grown 11% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month EV/EBITDA ratio, a commonly used multiple for valuing Mining- Non Ferrous stocks, we see that the industry is currently trading at 8.13X compared with the S&P 500’s 24.66X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 7.63X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Over the last five years, the industry traded as high as 8.38X and as low as 7.92X, the median being 8.23X.
5 Mining - Non Ferrous Stocks to Keep a Tab on
Centrus Energy: The company currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040. Centrus Energy is pioneering the development of a high-performance nuclear fuel component called High-Assay, Low-Enriched Uranium (HALEU), which is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity. Under the HALEU Operation Contract with the Department of Energy (DOE), it had delivered 670 kilograms of HALEU as of March 25. On Nov. 5, 2024, the HALEU Operation Contract was modified to extend the Phase 2 period of performance to June 30, 2025. DOE has also increased the Phase 2 contract value and related funding to $152.3 million. HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity.
Headquartered in Bethesda, MD, Centrus is a globally recognized supplier of Low-Enriched Uranium fuel. The Zacks Consensus Estimate for fiscal 2025 earnings has moved up 85.8% over the past 60 days. LEU has a trailing four-quarter earnings surprise of 273%, on average. The company currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: LEU
Coeur Mining: The buyout of SilverCrest Metals Inc. in February 2025 positioned Coeur Mining as a significant global silver company, with around 56% of revenues coming from the United States-based operations and 40% from silver. The acquisition added SilverCrest's high-grade, low-cost Las Chispas underground mine in Sonora, Mexico, into Coeur Mining's portfolio, improving its cost and margin profile The company reported silver production of 3.7 million ounces in first quarter of 2025, which was 44% higher year over year, driven by the newly expanded Rochester operation and a partial quarter of contribution from the newly acquired Las Chispas mine. Backed by solid contributions from CDE’s five North American operations, the company remains on track to deliver guided 2025 production of 380,000 - 440,000 ounces of gold and 16.7 - 20.3 million ounces of silver.
This Chicago, IL-based company explores, develops and produces gold, silver, zinc and lead properties, with five operations in the United States, Mexico and Canada. The Zacks Consensus Estimate for CDE’s fiscal 2025 earnings indicates year-over-year improvement of 267%. The consensus estimate has moved up 29% over the past 60 days. The company currently carries a Zacks Rank #2 (Buy).
Price & Consensus: CDE
Ero Copper: The company has been progressing with its strategic initiatives, which will drive significant near-term growth. The Tucumã Operation remains on track to achieve commercial production in the first half of this year, following the successful completion of repairs to and commissioning of the third tailings filter in April 2025. At the Caraíba Operations, the company achieved targeted mining rates at the Pilar Mine in March 2025 and completed mobilization of a second underground development contractor during the quarter. These initiatives are expected to support sequential growth in production through the rest of the year. At the Xavantina Operations, ongoing investments in mine modernization and mechanization will drive increases in mined and processed volumes through the remainder of the year. Gold grades are also expected to improve, supporting higher production levels and lower unit costs. The company is likely to deliver a record copper production in 2025, while investing in innovation and operational flexibility to improve margins, and advancing long-term value creation at Furnas.
The Zacks Consensus Estimate for the Vancouver, Canada-based company’s fiscal 2025 earnings indicates year-over-year growth of 165%. The estimate has moved up 3% in the past 30 days. The company has a trailing four-quarter earnings surprise of 28.9%, on average. ERO currently carries a Zacks Rank #3 (Hold).
Price & Consensus: ERO
Freeport-McMoRan: The company's efforts to expand reserves through exploration near existing mines will fuel growth. At Cerro Verde, a large-scale concentrator expansion provided incremental annual production of around 600 million pounds of copper and 15 million pounds of molybdenum. It is evaluating a large-scale expansion at El Abra in Chile to define a large sulfide resource that could support a major mill project similar to the large-scale concentrator at Cerro Verde. Also, PT Freeport Indonesia (PT-FI) substantially completed the construction of the new greenfield smelter in Eastern Java during 2024, with an expected start-up in second-quarter 2025, followed by a full ramp-up by the end of 2025. It is also developing the Kucing Liar ore body within the Grasberg district with a targeted commencement of production by 2030. The company’s focus on cost management and lowering debt levels is commendable.
The Zacks Consensus Estimate for the company’s earnings for fiscal 2025 has moved up 2% over the past 30 days. The estimate indicates year-over-year growth of 11.5%. FCX has a trailing four-quarter earnings surprise of 10.5%, on average. It has a long-term estimated earnings growth rate of 30.6%. The Phoenix, AZ-based company currently carries a Zacks Rank of 3.
Price & Consensus: FCX