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3 Non-Ferrous Metal Mining Stocks to Watch in a Challenging Industry
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The prospects of the Zacks Mining - Non Ferrous industry remain challenged amid the current volatility in metal prices. Industry players also grapple with inflated costs, labor shortages and supply-chain issues. However, the demand for non-ferrous metals is expected to be supported by the energy-transition trend, which should buoy the industry.
Against this backdrop, we suggest keeping an eye on companies like Southern Copper Corporation (SCCO - Free Report) , Freeport-McMoRan Inc. (FCX - Free Report) and Lundin Mining Corp. (LUNMF - Free Report) . These companies are poised to gain from their endeavors to build reserves and control costs while investing in technology and improving production efficiency.
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?
Metal Price Swings Cloud Near-Term Outlook: Copper prices started 2026 on a strong note, supported by demand from electric vehicles (EVs), renewable energy projects, data center growth and grid modernization. Meanwhile, disruptions at major global mining operations fueled supply concerns, boosting prices to a high of roughly $6.40 per pound in late January. Prices were mostly volatile during February, largely trading near $6 per pound. Concerns about the impact of surging oil prices on the global economy due to the war in the Middle East dragged down prices to a three-month low of around $5.3 per pound in late March. Prices rebounded in April on hopes of a de-escalation in the Iran war. Copper hit a record high of $6.60 per pound earlier this week, as supply disruptions and booming AI-related infrastructure demand fueled a rally in the metal. However, it has since eased toward $6.5 per pound as traders took profits while reassessing underlying supply and demand conditions. Gold prices have retreated from January 2026 record highs of $5,608.35 an ounce as persistent inflation, a stronger U.S. dollar and expectations of higher-for-longer interest rates weighed on investor sentiment. Gold is currently trading near $4,700 an ounce. Silver, meanwhile, climbed toward $88 an ounce, reaching its highest level in two months and outperforming other precious metals as industrial demand prospects have improved. However, reduced expectations for Federal Reserve rate cuts limited further upside. Uranium futures were above $86.50 per pound, near their highest level in two months, on optimism surrounding 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.
Strong Demand to Support the Industry: The demand for non-ferrous metals is expected to remain high in the future, given their wide use in primary sectors, including transportation, electricity, construction, telecommunication, energy and information technology. The surging 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 overhauling and upgrading of the nation’s infrastructure and promoting green policies per the U.S. Infrastructure Investment and Jobs Act will also require a huge amount of non-ferrous metals.
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 #156, which places it in the bottom 36% of 243 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 93.9% in the past year compared with the Zacks Basic Materials sector’s rise of 49.6%. The S&P 500 has risen 31.2% 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 14.92X compared with the S&P 500’s 18.59X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 15.31X. 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 17.79X and as low as 3.95X, the median being 9.24X.
3 Mining - Non Ferrous Stocks to Keep an Eye 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. SCCO expects to produce 915,000 tons of copper in 2026. Southern Copper expected 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 33.4%. The estimate has moved up 6.4% over the past 60 days. The company has a trailing four-quarter earnings surprise of 9.1%, on average. SCCO has a long-term estimated earnings growth rate of 14.6% and currently carries a Zacks Rank #3 (Hold).
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 300-400 million pounds by 2026/2027 in North America and subsequently 800 mm 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 company commenced the phased ramp-up of the Grasberg Block Cave underground mine in March 2026, following the temporary suspension of operations following the September 2025 mud rush incident.
The Zacks Consensus Estimate for FCX’s earnings for fiscal 2026 indicates year-over-year growth of 44.6%. The estimate has moved up 0.4% over the past 60 days. FCX has a trailing four-quarter earnings surprise of 32.12%, on average. It has a long-term estimated earnings growth rate of 32.4%. The Phoenix, AZ-based company currently carries a Zacks Rank of 3.
Price & Consensus: FCX
Lundin Mining: The company recently acquired an additional 5% equity interest in SCM Minera Lumina Copper Chile, owner of the Caserones copper-molybdenum mine, along with a 30.9% interest in the Los Helados Project and a 0.62% net smelter return royalty on Los Helados from JX Advanced Metals Corp. and affiliates for a total consideration of $215 million. This acquisition increased LUNMF’s ownership in Caserones to 75%, adding annual attributable copper production of approximately 6,500-7,000 tons, while the 30.9% interest in the Los Helados Project strengthens the company's copper and gold Mineral Resource base and provides compelling long-term growth optionality, including potential synergies with the nearby Caserones operation. With the completion of the sale of the Eagle mine to Talon Metals, it is now a copper-dominant mining company, with approximately 85% of quarterly revenues generated from copper. Results of the technical study for the Vicuña project, which comprises the Filo del Sol deposit and the Josemaria deposit, underscore its potential as a Tier 1 asset with peak annual copper production exceeding 500,000 tons and peak gold production exceeding 800,000 ounces per annum. It is expected to rank among the top five copper, gold and silver mines globally. A sanction decision is expected this year.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2026 earnings indicates a year-over-year improvement of 51.3%. The estimate has moved up 15% over the past 60 days. It has a long-term estimated earnings growth rate of 17.8%. The company currently carries a Zacks Rank of 3.
Price & Consensus: LUNMF
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3 Non-Ferrous Metal Mining Stocks to Watch in a Challenging Industry
The prospects of the Zacks Mining - Non Ferrous industry remain challenged amid the current volatility in metal prices. Industry players also grapple with inflated costs, labor shortages and supply-chain issues. However, the demand for non-ferrous metals is expected to be supported by the energy-transition trend, which should buoy the industry.
Against this backdrop, we suggest keeping an eye on companies like Southern Copper Corporation (SCCO - Free Report) , Freeport-McMoRan Inc. (FCX - Free Report) and Lundin Mining Corp. (LUNMF - Free Report) . These companies are poised to gain from their endeavors to build reserves and control costs while investing in technology and improving production efficiency.
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?
Metal Price Swings Cloud Near-Term Outlook: Copper prices started 2026 on a strong note, supported by demand from electric vehicles (EVs), renewable energy projects, data center growth and grid modernization. Meanwhile, disruptions at major global mining operations fueled supply concerns, boosting prices to a high of roughly $6.40 per pound in late January. Prices were mostly volatile during February, largely trading near $6 per pound. Concerns about the impact of surging oil prices on the global economy due to the war in the Middle East dragged down prices to a three-month low of around $5.3 per pound in late March. Prices rebounded in April on hopes of a de-escalation in the Iran war. Copper hit a record high of $6.60 per pound earlier this week, as supply disruptions and booming AI-related infrastructure demand fueled a rally in the metal. However, it has since eased toward $6.5 per pound as traders took profits while reassessing underlying supply and demand conditions. Gold prices have retreated from January 2026 record highs of $5,608.35 an ounce as persistent inflation, a stronger U.S. dollar and expectations of higher-for-longer interest rates weighed on investor sentiment. Gold is currently trading near $4,700 an ounce. Silver, meanwhile, climbed toward $88 an ounce, reaching its highest level in two months and outperforming other precious metals as industrial demand prospects have improved. However, reduced expectations for Federal Reserve rate cuts limited further upside. Uranium futures were above $86.50 per pound, near their highest level in two months, on optimism surrounding 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.
Strong Demand to Support the Industry: The demand for non-ferrous metals is expected to remain high in the future, given their wide use in primary sectors, including transportation, electricity, construction, telecommunication, energy and information technology. The surging 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 overhauling and upgrading of the nation’s infrastructure and promoting green policies per the U.S. Infrastructure Investment and Jobs Act will also require a huge amount of non-ferrous metals.
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 #156, which places it in the bottom 36% of 243 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 93.9% in the past year compared with the Zacks Basic Materials sector’s rise of 49.6%. The S&P 500 has risen 31.2% 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 14.92X compared with the S&P 500’s 18.59X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 15.31X. 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 17.79X and as low as 3.95X, the median being 9.24X.
3 Mining - Non Ferrous Stocks to Keep an Eye 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. SCCO expects to produce 915,000 tons of copper in 2026. Southern Copper expected 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 33.4%. The estimate has moved up 6.4% over the past 60 days. The company has a trailing four-quarter earnings surprise of 9.1%, on average. SCCO has a long-term estimated earnings growth rate of 14.6% and currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 300-400 million pounds by 2026/2027 in North America and subsequently 800 mm 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 company commenced the phased ramp-up of the Grasberg Block Cave underground mine in March 2026, following the temporary suspension of operations following the September 2025 mud rush incident.
The Zacks Consensus Estimate for FCX’s earnings for fiscal 2026 indicates year-over-year growth of 44.6%. The estimate has moved up 0.4% over the past 60 days. FCX has a trailing four-quarter earnings surprise of 32.12%, on average. It has a long-term estimated earnings growth rate of 32.4%. The Phoenix, AZ-based company currently carries a Zacks Rank of 3.
Price & Consensus: FCX
Lundin Mining: The company recently acquired an additional 5% equity interest in SCM Minera Lumina Copper Chile, owner of the Caserones copper-molybdenum mine, along with a 30.9% interest in the Los Helados Project and a 0.62% net smelter return royalty on Los Helados from JX Advanced Metals Corp. and affiliates for a total consideration of $215 million. This acquisition increased LUNMF’s ownership in Caserones to 75%, adding annual attributable copper production of approximately 6,500-7,000 tons, while the 30.9% interest in the Los Helados Project strengthens the company's copper and gold Mineral Resource base and provides compelling long-term growth optionality, including potential synergies with the nearby Caserones operation. With the completion of the sale of the Eagle mine to Talon Metals, it is now a copper-dominant mining company, with approximately 85% of quarterly revenues generated from copper. Results of the technical study for the Vicuña project, which comprises the Filo del Sol deposit and the Josemaria deposit, underscore its potential as a Tier 1 asset with peak annual copper production exceeding 500,000 tons and peak gold production exceeding 800,000 ounces per annum. It is expected to rank among the top five copper, gold and silver mines globally. A sanction decision is expected this year.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2026 earnings indicates a year-over-year improvement of 51.3%. The estimate has moved up 15% over the past 60 days. It has a long-term estimated earnings growth rate of 17.8%. The company currently carries a Zacks Rank of 3.
Price & Consensus: LUNMF
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