Why Non-Ferrous Metal Mining Is Getting Investors' Attention Right Now

The non-ferrous metals sector is heating up, and it’s not just hype. Here’s what’s actually driving the momentum.

The Price Story

Copper hit $5.1/lb recently—that’s a 25% jump year-over-year and the highest level in weeks. Silver’s even wilder: up 84% YTD and flirting with all-time highs at $53/oz. Gold? +58.8% YTD, sitting at $4,150/oz. Even uranium, despite a recent pullback to $77/lb from $84, remains well-supported.

What’s fueling this? Three things: Fed rate-cut expectations, global economic uncertainty driving safe-haven demand, and the U.S. Geological Survey recently added silver, copper, and uranium to the critical minerals list. That’s not just symbolic—it signals serious government backing for these metals’ strategic importance.

The Supply Squeeze Is Real

Here’s the catch: old mines are depleting, new projects take years and billions to develop, and the skilled workforce shortage is pushing up labor costs. Energy, materials, freight—everything costs more. But here’s the thing: when supply tightens while demand stays strong, prices typically go higher. The industry knows it can’t control commodity prices, so it’s doubling down on cost-cutting, digital innovation, and operational efficiency.

Why Demand Won’t Slow Down

Electric vehicles, renewable energy infrastructure, data centers, green building projects—non-ferrous metals are baked into all of it. The U.S. Infrastructure Investment and Jobs Act will require massive volumes of copper, nickel, and other metals for decades. This isn’t a one-year trend.

The Valuation Play

Here’s where it gets interesting: mining stocks are trading at 10.59X EV/EBITDA vs. the S&P 500’s 18.43X. The sector has gained 10.1% YTD while the broader market is up 15.8%, but the valuation gap suggests there’s still room to run. Over three years, the industry’s EV/EBITDA ranged from 6.86X to 15.14X—we’re currently closer to the low end.

Four Names Worth Watching

Southern Copper (SCCO): Largest copper reserves in the industry. Deploying $15B in capex this decade—$10.3B going to Peru for three major projects. New production from Michiquillay alone: 225,000 tons/year. Shares up 46% YTD; earnings growth estimate at +19.9% for 2025. Zacks Rank: #1 (Strong Buy).

Lundin Mining (LUNMF): Just crushed Q3 with $1B+ in revenue and $383M in operating cash flow. Consolidated copper cash cost hit $1.61/lb—lowest this year. Upgraded full-year guidance: 328,000 tons of copper production (up 11,500 tons), and lowered cash cost guidance to $1.85-$2.00/lb. Targeting top-10 copper producer status globally with 500K+ tons/year output. Shares up 111.7% YTD; 2025 earnings growth estimate at +68.4%. Zacks Rank: #2 (Buy).

Centrus Energy (LEU): Different angle—uranium enrichment. Has a $3.9B revenue backlog through 2040 with long-term utility contracts. Pioneering HALEU (High-Assay, Low-Enriched Uranium) fuel for next-gen reactors. Major expansion underway at Piketon, OH facility. Shares up a staggering 281.6% YTD, with a jaw-dropping 327.7% average earnings surprise over the last four quarters. Zacks Rank: #3 (Hold).

Coeur Mining (CDE): Acquiring New Gold to create a top-10 global precious metals producer. Combined entity will produce ~1.25M gold-equivalent ounces in 2026 (900K gold + 20M silver). Projected $3B EBITDA and $2B free cash flow at higher margins. Over 80% of revenue from North America. Shares up 183.1% YTD; 2025 earnings expected to surge 406% YoY. Zacks Rank: #3.

The Bottom Line

The Zacks Mining - Non Ferrous industry ranks #52 out of 243 industries (top 21%). Tailwinds are strong: rising prices, supply constraints, regulatory support, and structural demand growth. These four companies are positioned to capture that upside through capital investment, operational excellence, and strategic M&A.