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4 Non-Ferrous Metal Mining Stocks to Consider From a Thriving 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. The recent inclusion of silver, copper and uranium in the list of critical minerals underscores their growing strategic importance and will attract investment in the industry.
We suggest keeping a tab on companies like Southern Copper Corporation (SCCO - Free Report) , Lundin Mining Corporation (LUNMF - Free Report) , Coeur Mining (CDE - Free Report) and Centrus Energy (LEU - Free Report) . These companies are 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 futures recently peaked at a four-week high of $5.1 per pound, up 25% in a year. Chilean producer Codelco offered record-high prices to Chinese buyers, a move that may signal growing prioritization of U.S. customers. Copper also gained support from expectations of further rate cuts by the U.S. Federal Reserve. This has boosted silver and gold prices as well. Silver prices have surged 84% year to date and are currently at $53 per ounce, hovering near record highs. Since the past month, silver has been trending near all-time highs amid global economic uncertainties, prospects of lower interest rates and tightening supply. These factors have boosted gold as well, gaining 58.8% year to date and currently at $4,150 an ounce. Uranium prices recently retreated to $77 per pound after hitting a 14-month high of $84 last month as supply concerns have eased lately. Adding to the bullish outlook, silver, copper and uranium were recently added to the U.S. Geological Survey’s (USGS) critical minerals list, underscoring their strategic importance to the U.S. economy and national security. 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 #52, which places it in the top 21% of 243 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 outperformed its sector but lagged the Zacks S&P 500 composite over the past 12 months. The stocks in this industry have collectively gained 10.1% in the past year against the Zacks Basic Materials sector’s dip of 3.6%. The S&P 500 has grown 15.8% 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 10.59X compared with the S&P 500’s 18.43X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 13.90X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Over the last three years, the industry traded as high as 15.14X and as low as 6.86X, the median being 9.75X.
4 Mining - Non Ferrous Stocks to Keep a Tab on
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. The company’s capital investment program for this decade runs to more than $15 billion. The major portion (around $10.3 billion) is earmarked for Peru as the country is the second-largest producer of copper. This includes investments in Tia Maria - Arequipa, Los Chancas - Apurimac and Michiquillay - Cajamarca projects in Peru. The Tía María project is expected to produce 120,000 tons of SX- EW copper cathodes annually. The Los Chancas project is an open-pit mine with a combined operation of a concentrator and SX-EW processes. It is expected to produce 130,000 tons of copper and 7,500 tons of molybdenum annually, and is expected to start in 2030-2031. SCCO’s Michiquillay is expected to become one of Peru's largest copper mines and will produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) for an expected mine life of more than 25 years. Given its constant commitment to increasing low-cost production and growth investments, SCCO is well-poised to continue delivering an enhanced performance. SCCO shares have gained 46% so far this year.
The Zacks Consensus Estimate for the company’s fiscal 2025 earnings indicates year-over-year growth of 19.9%. The estimate has moved up 10% over the past 60 days and indicates a year-over-year rise of 19.9%. SCCO has a long-term estimated earnings growth rate of 20.6%. The company has a trailing four-quarter earnings surprise of around 6%, on average. SCCO currently sports a Zacks Rank #1 (Strong Buy).
Lundin Mining: The company’s third-quarter 2025 copper production, revenues, EBITDA and earnings all exceeded results from the first and second quarters. The company generated more than $1 billion in revenues and delivered $383 million of adjusted operating cash flow. Consolidated copper cash cost of $1.61 per pound marks its lowest quarterly cost this year. Lundin Mining also updated its full-year guidance to reflect strong operational performance, particularly at Caserones. The midpoint of consolidated copper production is increasing by 11,500 tons to 328,000 tons, with a new range of 319,000-337,000 tons. Additionally, improved performance at Caserones and Chapada has resulted in the lowering of its overall consolidated copper cash cost guidance to a range of $1.85-$2.00 /lb. The company is continuing to advance its growth initiatives as part of its strategic aspirations to become a global top-ten copper producer and achieve copper production of more than 500,000 tons per year and gold production of more than 550,000 ounces per year. LUNMF shares have gained 111.7% year to date.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2025 earnings indicates a year-over-year improvement of 68.4%. The estimate has moved up 25.5% over the past 60 days. It has a long-term estimated earnings growth rate of 43.9%. The company currently carries a Zacks Rank #2 (Buy).
Price & Consensus: LUNMF
Centrus Energy: The company currently has a $3.9-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. The company recently unveiled ambitious plans to significantly expand its uranium enrichment plant in Piketon, OH, to boost the production of Low-Enriched Uranium and HALEU. This project will mark a significant step in restoring America’s ability to enrich uranium at scale. Centrus Energy’s multi-billion-dollar plan requires public and private investment and involves adding thousands of additional centrifuges at the plant to enable large-scale production. LEU shares have gained 281.6% so far this year.
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 6% over the past 60 days. The estimate indicates year-over-year growth of 2.5%. LEU has a trailing four-quarter earnings surprise of 327.7%, on average. The company currently carries a Zacks Rank #3 (Hold).
Price & Consensus: LEU
Coeur Mining: The company recently inked an agreement to acquire New Gold that will create a new, 100% North American senior mining company. It will be placed among the top 10 largest precious metals companies and the top five largest silver producers globally. It will boast seven high-quality operations producing approximately 1.25 million gold equivalent ounces in 2026. This includes 20 million ounces of silver and 900,000 ounces of gold. More than 80% of its revenues will stem from the US and Canada. The combined company is expected to generate approximately $3 billion of EBITDA and approximately $2 billion of free cash flow in 2026 at significantly lower overall costs and higher margins. This strong financial position is expected to accelerate investment in multiple high-return organic growth opportunities, including New Afton’s K-Zone, brownfield exploration at Rainy River and across all of CDE’s portfolio in the US, Mexico and Canada. The combined company will have silver representing 30% of total metals reserves. CDE shares have gained 183.1% so far this year.
The Zacks Consensus Estimate for the Chicago, IL-based company’s fiscal 2025 earnings indicates a year-over-year improvement of 406%. The consensus estimate has moved up 9.3% over the past 60 days. The company currently carries a Zacks Rank of 3.
Price & Consensus: CDE
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4 Non-Ferrous Metal Mining Stocks to Consider From a Thriving 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. The recent inclusion of silver, copper and uranium in the list of critical minerals underscores their growing strategic importance and will attract investment in the industry.
We suggest keeping a tab on companies like Southern Copper Corporation (SCCO - Free Report) , Lundin Mining Corporation (LUNMF - Free Report) , Coeur Mining (CDE - Free Report) and Centrus Energy (LEU - Free Report) . These companies are 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 futures recently peaked at a four-week high of $5.1 per pound, up 25% in a year. Chilean producer Codelco offered record-high prices to Chinese buyers, a move that may signal growing prioritization of U.S. customers. Copper also gained support from expectations of further rate cuts by the U.S. Federal Reserve. This has boosted silver and gold prices as well. Silver prices have surged 84% year to date and are currently at $53 per ounce, hovering near record highs. Since the past month, silver has been trending near all-time highs amid global economic uncertainties, prospects of lower interest rates and tightening supply. These factors have boosted gold as well, gaining 58.8% year to date and currently at $4,150 an ounce. Uranium prices recently retreated to $77 per pound after hitting a 14-month high of $84 last month as supply concerns have eased lately. Adding to the bullish outlook, silver, copper and uranium were recently added to the U.S. Geological Survey’s (USGS) critical minerals list, underscoring their strategic importance to the U.S. economy and national security. 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 #52, which places it in the top 21% of 243 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 outperformed its sector but lagged the Zacks S&P 500 composite over the past 12 months. The stocks in this industry have collectively gained 10.1% in the past year against the Zacks Basic Materials sector’s dip of 3.6%. The S&P 500 has grown 15.8% 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 10.59X compared with the S&P 500’s 18.43X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 13.90X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Over the last three years, the industry traded as high as 15.14X and as low as 6.86X, the median being 9.75X.
4 Mining - Non Ferrous Stocks to Keep a Tab on
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. The company’s capital investment program for this decade runs to more than $15 billion. The major portion (around $10.3 billion) is earmarked for Peru as the country is the second-largest producer of copper. This includes investments in Tia Maria - Arequipa, Los Chancas - Apurimac and Michiquillay - Cajamarca projects in Peru. The Tía María project is expected to produce 120,000 tons of SX- EW copper cathodes annually. The Los Chancas project is an open-pit mine with a combined operation of a concentrator and SX-EW processes. It is expected to produce 130,000 tons of copper and 7,500 tons of molybdenum annually, and is expected to start in 2030-2031. SCCO’s Michiquillay is expected to become one of Peru's largest copper mines and will produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) for an expected mine life of more than 25 years. Given its constant commitment to increasing low-cost production and growth investments, SCCO is well-poised to continue delivering an enhanced performance. SCCO shares have gained 46% so far this year.
The Zacks Consensus Estimate for the company’s fiscal 2025 earnings indicates year-over-year growth of 19.9%. The estimate has moved up 10% over the past 60 days and indicates a year-over-year rise of 19.9%. SCCO has a long-term estimated earnings growth rate of 20.6%. The company has a trailing four-quarter earnings surprise of around 6%, on average. SCCO currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: SCCO
Lundin Mining: The company’s third-quarter 2025 copper production, revenues, EBITDA and earnings all exceeded results from the first and second quarters. The company generated more than $1 billion in revenues and delivered $383 million of adjusted operating cash flow. Consolidated copper cash cost of $1.61 per pound marks its lowest quarterly cost this year. Lundin Mining also updated its full-year guidance to reflect strong operational performance, particularly at Caserones. The midpoint of consolidated copper production is increasing by 11,500 tons to 328,000 tons, with a new range of 319,000-337,000 tons. Additionally, improved performance at Caserones and Chapada has resulted in the lowering of its overall consolidated copper cash cost guidance to a range of $1.85-$2.00 /lb. The company is continuing to advance its growth initiatives as part of its strategic aspirations to become a global top-ten copper producer and achieve copper production of more than 500,000 tons per year and gold production of more than 550,000 ounces per year. LUNMF shares have gained 111.7% year to date.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2025 earnings indicates a year-over-year improvement of 68.4%. The estimate has moved up 25.5% over the past 60 days. It has a long-term estimated earnings growth rate of 43.9%. The company currently carries a Zacks Rank #2 (Buy).
Price & Consensus: LUNMF
Centrus Energy: The company currently has a $3.9-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. The company recently unveiled ambitious plans to significantly expand its uranium enrichment plant in Piketon, OH, to boost the production of Low-Enriched Uranium and HALEU. This project will mark a significant step in restoring America’s ability to enrich uranium at scale. Centrus Energy’s multi-billion-dollar plan requires public and private investment and involves adding thousands of additional centrifuges at the plant to enable large-scale production. LEU shares have gained 281.6% so far this year.
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 6% over the past 60 days. The estimate indicates year-over-year growth of 2.5%. LEU has a trailing four-quarter earnings surprise of 327.7%, on average. The company currently carries a Zacks Rank #3 (Hold).
Price & Consensus: LEU
Coeur Mining: The company recently inked an agreement to acquire New Gold that will create a new, 100% North American senior mining company. It will be placed among the top 10 largest precious metals companies and the top five largest silver producers globally. It will boast seven high-quality operations producing approximately 1.25 million gold equivalent ounces in 2026. This includes 20 million ounces of silver and 900,000 ounces of gold. More than 80% of its revenues will stem from the US and Canada. The combined company is expected to generate approximately $3 billion of EBITDA and approximately $2 billion of free cash flow in 2026 at significantly lower overall costs and higher margins. This strong financial position is expected to accelerate investment in multiple high-return organic growth opportunities, including New Afton’s K-Zone, brownfield exploration at Rainy River and across all of CDE’s portfolio in the US, Mexico and Canada. The combined company will have silver representing 30% of total metals reserves. CDE shares have gained 183.1% so far this year.
The Zacks Consensus Estimate for the Chicago, IL-based company’s fiscal 2025 earnings indicates a year-over-year improvement of 406%. The consensus estimate has moved up 9.3% over the past 60 days. The company currently carries a Zacks Rank of 3.
Price & Consensus: CDE