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The prospects of the Zacks Mining - Non-Ferrous industry remain challenged amid the recent volatility in metal prices, weak demand, and tariff uncertainty. Industry players must 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), Coeur Mining (CDE - 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?

Volatility in Metal Prices is Concerning: Copper prices had spiked earlier this year after the U.S. president launched a probe into copper tariffs, triggering a buying rush as traders feared duties on all refined imports. However, once the White House clarified that the 50% import tariff would only apply to semi-finished products, copper products, and copper-intensive goods while exempting ore, cathodes, and concentrates, prices tumbled 22% on July 31.

Copper futures have regained somewhat and are at around $4.55 per pound. Concerns over demand persist, with the Caixin China General Manufacturing PMI contracting to 49.5 in July from 50.4 in June. Uranium prices had been on a downtrend for the major part of this year amid adequate supply and uncertain demand. Prices have moved up lately to around $73.5 per pound, supported by renewed push on nuclear power by major countries and industries. However, it still moved down 5.36% in a year.

Meanwhile, gold prices have increased a solid 30% year-to-date, riding on trade tensions, as well as geopolitical uncertainty. Silver has also gained 35%, driven by these factors. Strong data from China’s photovoltaic sector bodes well for the metal.

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, should favor the industry in the long run.

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.

The 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 12-stock group within the broader Zacks Basic Materials Sector, carries a Zacks Industry Rank #17, which places it in the bottom 32% of 245 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

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

The Industry Versus the 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 lost 7.5% in the past year compared with the Zacks Basic Materials sector’s rise of 2.2%. The S&P 500 has gained 15.7% in the said time frame.

One-Year Price Performance

Image Source: Zacks Investment Research

The Industry's Recent 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 has been trading at 9.48X compared with the S&P 500’s 17.81X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 13.85X. This is shown in the charts below.

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

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

Over the past three years, the industry has traded as high as 15.14X, as low as 4.02X, and with a median of 9.52X.

5 Mining - Non-Ferrous Stocks to Keep an Eye On

Presented below is a rundown of the previously-mentioned stocks to watch.

Southern Copper

This company has the largest copper reserve in the industry and operates world-class assets in investment-grade countries, such as Mexico and Peru. Southern Copper has produced 483,395 tons of copper in the first half of 2025, reaching the halfway mark of its target copper production of 965,300 tons in 2025. This will be supported by higher production in Peru and production from the new Buenavista zinc concentrator.

The company’s capital investment program for Peru for this decade exceeds $10.3 billion, which includes the Tia Maria, Los Chancas, and Michiquillay projects. In Mexico, the company is trying to obtain permits and licenses that have been put on hold by the previous government. It is in talks with the current administration to go ahead with the company’s planned investments of $10.2 billion in Mexico. This includes investments for the El Pilar - Sonora and El Arco - Baja California projects in Mexico.

Given its constant commitment to increasing low-cost production and growth investments, Southern Copper is well-poised to continue delivering an enhanced performance. The stock's shares have gained 6.1% so far this year. 

The Zacks Consensus Estimate for the company’s fiscal 2025 earnings indicates year-over-year growth of 7.6%. The estimate has moved up 7% over the past 90 days and suggests a year-over-year rise of 8.6%. Southern Copper has a long-term estimated earnings growth rate of 14.5%. The company has a trailing four-quarter earnings surprise of around 5%, on average. The stock currently carries a Zacks Rank #3 (Hold) rating.

Price & Consensus: Southern Copper

Image Source: Zacks Investment Research

Freeport-McMoRan

This company is well-poised for growth, backed by its high-quality copper assets. It continues to expand reserves through exploration near existing mines. Freeport-McMoRan is implementing the latest technologies and data analytics in leaching processes across its North America and South America operations.

Freeport-McMoRan is targeting an annual run rate of 300 million pounds by this year-end. The company plans to take it to 800 million pounds over the next three to five years. PT Freeport Indonesia (PT-FI) produced the first copper anode in July at the newly constructed greenfield smelter in Eastern Java. PTFI is developing the Kucing Liar project, with production expected to start by 2030.

Freeport-McMoRan's organic project pipeline including Bagdad 2X, El Abra expansion and Lone Star sulfide expansions, have strong potential. The company's efforts to reduce its debt levels appear encouraging. The stock has gained 16.5% year-to-date.

The Zacks Consensus Estimate for Freeport-McMoRan's earnings for fiscal 2025 indicates year-over-year growth of 18.2%. The estimate has moved up 5% over the past 90 days. Freeport-McMoRan has a trailing four-quarter earnings surprise of 10.4%, on average. It has a long-term estimated earnings growth rate of 30.2%. The company currently carries a Zacks Rank of #3 (Hold).

Price & Consensus: Freeport-McMoRan

Image Source: Zacks Investment Research

First Quantum Minerals

In June, the company received approval from the government of Panama for its Preservation and Safe Management program at the Cobre Panamá mine. The company started shipping copper concentrates that had been on the site since it was shut down in 2023. The proceeds are being utilized to support critical preservation activities.

In the second quarter, the Kansanshi S3 Expansion project reached the final stages of commissioning and remains on track for first production in the second half of the year. Backed by this development, the company expects to achieve its production target of 160,000-190,000 tons of copper and 100,000-110,000 ounces of gold in 2025.

At Kanshanshi, the company is currently assessing the newly identified near-surface gold zone occurrences in the South East Dome area. Preliminary sample tests have shown encouraging results. First Quantum Minerals shares have gained 32.6% so far this year. 

The Zacks Consensus Estimate for First Quantum Minerals’ fiscal 2025 earnings has moved 120% north over the past 90 days. The estimate indicates a year-over-year upsurge of 650%. First Quantum Minerals has a trailing four-quarter earnings surprise of 133%, on average. The company currently carries a Zacks Rank of #3 (Hold).

Price & Consensus: First Quantum Minerals

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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 4.7 million ounces in the second quarter of 2025, which marked a 79% year-over-year surge, and gold output increased 38% to 108,487 ounces, attributed to solid contributions from all five of its North American gold and silver operations, and the first full quarter contribution from the Las Chispas mine.

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. Coeur Mining is also lowering its debt levels, and it ended the second quarter with a net leverage ratio of 0.4X. The company has also recently initiated a stock repurchase program. Coeur Mining shares have skyrocketed 119.5% year-to-date. 

The Zacks Consensus Estimate for Coeur Mining's fiscal 2025 earnings indicates a year-over-year improvement of 344%. The consensus estimate has moved up 21% over the past 90 days. Coeur Mining has a trailing four-quarter earnings surprise of 126.5%, on average. The company currently carries a Zacks Rank #3 (Hold).

Price & Consensus: Coeur Mining

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Centrus Energy

This company ended the second quarter 2025 with a solid backlog of $3.6 billion, which includes long-term sales contracts with major utilities through 2040. The company is pioneering the production of High-Assay, Low-Enriched Uranium (HALEU). It is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors. HALEU also has an edge over low-enriched uranium by offering improved efficiency, extended fuel cycles, and lower waste.

Under its HALEU Operation Contract with the Department of Energy (DOE), it has already delivered 920 kilograms of HALEU and has now moved into Phase III. The HALEU market value is expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035. Centrus Energy is, thus, planning to expand production capacity in Ohio so that it can meet the domestic demand for HALEU and low-enriched uranium.

The company recently struck a deal with Korea Hydro & Nuclear Power (“KHNP”) and POSCO International aimed at attracting private capital to expand its uranium enrichment plant in Piketon, OH. It is currently competing for funding from the U.S. Department of Energy to increase the enrichment capacity. The company’s shares have surged 214.3% so far this year.

The Zacks Consensus Estimate for Centrus Energy's fiscal 2025 earnings has moved up 21% over the past 90 days. The company has a trailing four-quarter earnings surprise of 262.3% on average. The company currently carries a Zacks Rank #3 (Hold) rating.

Price & Consensus: Centrus Energy

Image Source: Zacks Investment Research 

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