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5 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) , First Quantum Minerals (FQVLF - Free Report) , Lundin Mining (LUNMF - Free Report) and Centrus Energy (LEU - 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?
Recent Dip in Metal Prices Raises Concerns: Copper futures slipped toward $6.50 per pound for a second consecutive session, pressured by a selloff in technology and AI stocks following disappointing earnings updates. Concerns over persistent inflation and a potential Fed rate hike also weighed on sentiment. However, tightening physical supplies in China and rising import premiums offered some support. Gold has slipped below $4,000 per ounce as persistent inflation and resilient economic growth in the United States fueled expectations of a potential Federal Reserve rate hike later this year. Silver prices have also declined below $51 an ounce, sinking to the lowest since November 2025. Gold is on track to decline nearly 4% in October, and silver is set to drop 15%, with both metals headed for a second consecutive monthly loss. Meanwhile, uranium prices remained near six-month highs at around $90 per pound, supported by supply concerns following delays at Kazatomprom's sulphuric acid plant and rising demand as major economies expand nuclear power investments.
Labor Shortages and Rising Costs Pressure Margins: 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 #188, which places it in the bottom 24% of 247 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 27.8% in the past year compared with the Zacks Basic Materials sector’s rise of 11.8%. The S&P 500 has risen 12.5% 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 13.77X compared with the S&P 500’s 17.76X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 12.37X. 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 9.56X.
5 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 918,000 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 $15 billion over the next decade in Peru and Mexico. 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 enhanced performance. The company's shares have gained 7.3% in the past six months.
The Zacks Consensus Estimate for the Phoenix, AZ-based company’s fiscal 2026 earnings indicates year-over-year growth of 53.2%. The estimate has moved up 5.5% over the past 60 days. The company has a trailing four-quarter earnings surprise of 5.7%, on average. SCCO has a long-term estimated earnings growth rate of 13.5% and currently carries a Zacks Rank #2 (Buy).
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 Baghdad 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. The company generated 156 million pounds of incremental copper production in the first nine months of 2026. It aims to raise annual production from the current run rate of 220 million pounds to 300 million pounds by 2027, and expects to take it higher in the future. 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 is also making progress with the ramp-up of the Grasberg Block Cave mine in Indonesia following the mud rush incident in September 2025. FCX shares have gained 12.5% in the past six months.
The Zacks Consensus Estimate for FCX’s earnings for fiscal 2026 indicates year-over-year growth of around 73%. The estimate has moved up 8.1% over the past 60 days. FCX has a trailing four-quarter earnings surprise of 29.6%, on average. It has a long-term estimated earnings growth rate of 36.6%. The Phoenix, AZ-based company currently carries a Zacks Rank of 2.
Price & Consensus: FCX
First Quantum Minerals: The company’s Cobre Panamá mine was placed into a phase of Preservation and Safe Management in November 2023. Following formal approval, the processing of the stockpiled ore at Cobre Panamá commenced in the second quarter of 2026. The company is now focusing towards stabilizing the additional processing configuration and executing the remaining refurbishment and maintenance program required for sustainable two-train operation. It stated there are sufficient stockpiles to support the processing program until mid-2027. Panama’s Interministerial Commission delivered its final report, recommending negotiations to provide a restart of Cobre Panamá to support long-term, orderly, self-financed closure. During the third quarter, the company continued the program to evaluate the new near-surface gold zone occurrences in the South East Dome area at Kansanshi. Test work continues with the pilot plant facility. The company is meanwhile progressing with the Taca Taca copper-gold-molybdenum project in Argentina and is exploring the La Granja and the Haquira copper deposits in Peru. FQVLF shares have gained 2.9% in the past six months.
The Zacks Consensus Estimate for First Quantum Minerals’ fiscal 2026 earnings has moved up 4.5% over the past 90 days. The estimate of 23 cents suggests 2,200% growth from earnings of one cent per share in the year-ago quarter. The company currently carries a Zacks Rank #3 (Hold).
Price & Consensus: FQVLF
Lundin Mining: The company is progressing on its growth strategy, with approval for the construction of an additional ball mill at Chapada, which is key to unlocking the Saúva project. Another important milestone at Vicuña Corp. was reached with the approval of RIGI PEELP status in Argentina, supporting its target of reaching a Stage 1 sanction decision by year-end. Vicuña Corp. is a strategic joint arrangement between Lundin Mining and BHP, established to advance two major copper-gold deposits—Filo del Sol and Josemaria—within the highly prospective Vicuña District along the Chile-Argentina border. In the second quarter of 2026, the company strengthened its ownership in the Vicuña district through the acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados. LUNMF shares have declined 15.7% in the past six months.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2026 earnings indicates a year-over-year improvement of 65%. The estimate has moved up 5% over the past 60 days. It has a long-term estimated earnings growth rate of 14.8%. LUNMF has a trailing four-quarter earnings surprise of 13.8%, on average. The company currently carries a Zacks Rank of 3.
Price & Consensus: LUNMF
Centrus Energy: The company currently has a $4.5-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). Centrus completed all HALEU production required under its demonstration contract in June 2026. The company also signed the $900 million DOE task order supporting commercial-scale HALEU capacity, with first new capacity expected by 2029. Centrus continues to rebuild U.S. uranium enrichment capacity through a multi-billion-dollar expansion of its Piketon, OH, site and a multi-year centrifuge manufacturing program in Oak Ridge, TN. The company has shipped the first centrifuge, achieving a major milestone. LEU recently acquired one of its suppliers, Westerman Holdings. This acquisition is expected to lead to lower project costs and greater efficiencies with an integrated supply chain. LEU shares have declined 50% in the past six months.
Headquartered in Bethesda, MD, Centrus is a globally recognized supplier of Low-Enriched Uranium fuel. The Zacks Consensus Estimate for fiscal 2026 earnings has moved up 2.6% over the past 60 days. The estimate indicates year-over-year growth of 13.1%. The company currently carries a Zacks Rank of 3.
View the Zacks #1 Rank List
Image: Shutterstock
5 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) , First Quantum Minerals (FQVLF - Free Report) , Lundin Mining (LUNMF - Free Report) and Centrus Energy (LEU - 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?
Recent Dip in Metal Prices Raises Concerns: Copper futures slipped toward $6.50 per pound for a second consecutive session, pressured by a selloff in technology and AI stocks following disappointing earnings updates. Concerns over persistent inflation and a potential Fed rate hike also weighed on sentiment. However, tightening physical supplies in China and rising import premiums offered some support. Gold has slipped below $4,000 per ounce as persistent inflation and resilient economic growth in the United States fueled expectations of a potential Federal Reserve rate hike later this year. Silver prices have also declined below $51 an ounce, sinking to the lowest since November 2025. Gold is on track to decline nearly 4% in October, and silver is set to drop 15%, with both metals headed for a second consecutive monthly loss. Meanwhile, uranium prices remained near six-month highs at around $90 per pound, supported by supply concerns following delays at Kazatomprom's sulphuric acid plant and rising demand as major economies expand nuclear power investments.
Labor Shortages and Rising Costs Pressure Margins: 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 #188, which places it in the bottom 24% of 247 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 27.8% in the past year compared with the Zacks Basic Materials sector’s rise of 11.8%. The S&P 500 has risen 12.5% 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 13.77X compared with the S&P 500’s 17.76X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 12.37X. 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 9.56X.
5 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 918,000 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 $15 billion over the next decade in Peru and Mexico. 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 enhanced performance. The company's shares have gained 7.3% in the past six months.
The Zacks Consensus Estimate for the Phoenix, AZ-based company’s fiscal 2026 earnings indicates year-over-year growth of 53.2%. The estimate has moved up 5.5% over the past 60 days. The company has a trailing four-quarter earnings surprise of 5.7%, on average. SCCO has a long-term estimated earnings growth rate of 13.5% and 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: 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 Baghdad 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. The company generated 156 million pounds of incremental copper production in the first nine months of 2026. It aims to raise annual production from the current run rate of 220 million pounds to 300 million pounds by 2027, and expects to take it higher in the future. 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 is also making progress with the ramp-up of the Grasberg Block Cave mine in Indonesia following the mud rush incident in September 2025. FCX shares have gained 12.5% in the past six months.
The Zacks Consensus Estimate for FCX’s earnings for fiscal 2026 indicates year-over-year growth of around 73%. The estimate has moved up 8.1% over the past 60 days. FCX has a trailing four-quarter earnings surprise of 29.6%, on average. It has a long-term estimated earnings growth rate of 36.6%. The Phoenix, AZ-based company currently carries a Zacks Rank of 2.
Price & Consensus: FCX
First Quantum Minerals: The company’s Cobre Panamá mine was placed into a phase of Preservation and Safe Management in November 2023. Following formal approval, the processing of the stockpiled ore at Cobre Panamá commenced in the second quarter of 2026. The company is now focusing towards stabilizing the additional processing configuration and executing the remaining refurbishment and maintenance program required for sustainable two-train operation. It stated there are sufficient stockpiles to support the processing program until mid-2027. Panama’s Interministerial Commission delivered its final report, recommending negotiations to provide a restart of Cobre Panamá to support long-term, orderly, self-financed closure. During the third quarter, the company continued the program to evaluate the new near-surface gold zone occurrences in the South East Dome area at Kansanshi. Test work continues with the pilot plant facility. The company is meanwhile progressing with the Taca Taca copper-gold-molybdenum project in Argentina and is exploring the La Granja and the Haquira copper deposits in Peru. FQVLF shares have gained 2.9% in the past six months.
The Zacks Consensus Estimate for First Quantum Minerals’ fiscal 2026 earnings has moved up 4.5% over the past 90 days. The estimate of 23 cents suggests 2,200% growth from earnings of one cent per share in the year-ago quarter. The company currently carries a Zacks Rank #3 (Hold).
Price & Consensus: FQVLF
Lundin Mining: The company is progressing on its growth strategy, with approval for the construction of an additional ball mill at Chapada, which is key to unlocking the Saúva project. Another important milestone at Vicuña Corp. was reached with the approval of RIGI PEELP status in Argentina, supporting its target of reaching a Stage 1 sanction decision by year-end. Vicuña Corp. is a strategic joint arrangement between Lundin Mining and BHP, established to advance two major copper-gold deposits—Filo del Sol and Josemaria—within the highly prospective Vicuña District along the Chile-Argentina border. In the second quarter of 2026, the company strengthened its ownership in the Vicuña district through the acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados. LUNMF shares have declined 15.7% in the past six months.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2026 earnings indicates a year-over-year improvement of 65%. The estimate has moved up 5% over the past 60 days. It has a long-term estimated earnings growth rate of 14.8%. LUNMF has a trailing four-quarter earnings surprise of 13.8%, on average. The company currently carries a Zacks Rank of 3.
Price & Consensus: LUNMF
Centrus Energy: The company currently has a $4.5-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). Centrus completed all HALEU production required under its demonstration contract in June 2026. The company also signed the $900 million DOE task order supporting commercial-scale HALEU capacity, with first new capacity expected by 2029. Centrus continues to rebuild U.S. uranium enrichment capacity through a multi-billion-dollar expansion of its Piketon, OH, site and a multi-year centrifuge manufacturing program in Oak Ridge, TN. The company has shipped the first centrifuge, achieving a major milestone. LEU recently acquired one of its suppliers, Westerman Holdings. This acquisition is expected to lead to lower project costs and greater efficiencies with an integrated supply chain. LEU shares have declined 50% in the past six months.
Headquartered in Bethesda, MD, Centrus is a globally recognized supplier of Low-Enriched Uranium fuel. The Zacks Consensus Estimate for fiscal 2026 earnings has moved up 2.6% over the past 60 days. The estimate indicates year-over-year growth of 13.1%. The company currently carries a Zacks Rank of 3.
Price & Consensus: LEU