Mining stocks heat up

Geopolitical stresses create bonanza for metals and minerals miners

U.S. President Donald Trump’s rationale for imposing high tariffs is to influence American companies that have moved some of their production offshore to return to the U.S. He also aims to push foreign corporations to invest in building new facilities in the U.S. to gain duty-free access to the market.

There are signs the strategy is having an impact on investment decisions, but at a cost. Many companies have publicly announced the higher prices imposed by the tariffs are being passed directly to consumers.

As if tariffs were not enough, the Iran war has made a wide range of products more expensive, and life more difficult for consumers. The blockage of the Strait of Hormuz goes well beyond raising the price of gasoline, diesel, jet fuel, and fertilizer. The cost of many minerals used in the production of a wide range of products is affected by the disruption in supply chains, extraction, and transportation costs.

For example, the Middle East accounts for a large portion of global sulfur production. Blockages and shipping disruptions have caused sulfuric acid prices to skyrocket, increasing by up to 245%.

Because sulfur is a crucial ingredient in high-pressure acid leach  processing, the shortage has drastically increased refining costs for copper and nickel. Smelters for zinc and lead are also experiencing squeezed margins,

And here’s something few people know. The Middle East is a major source of aluminum. With several regional producers declaring force majeure, aluminum prices have surged to near their four-year highs, at around US$3,700 per tonne. No wonder U.S. manufacturers have been pleading with Mr. Trump to lower aluminum tariffs.

Mining stocks have seen their prices rise as a result. Teck Resources Ltd. (TSX: TECK.B), one of the recommendations tracked in my Internet Wealth Builder newsletter, is ahead about 31% so far in 2026. Altius Minerals Corp. (TSX: ALS), another of our picks, has gained 36%. We’ve also seen a year-to-date return of 19% from the iShares North American Natural Resources ETF (CBOE BZX: IGE).

We recently added another Canadian mining major to our recommended list.

Hudbay Minerals delivers record revenue in first quarter

Hudbay Minerals Inc. (TSX: HBM) is an internationally diversified mining company based in Toronto. It produces base and precious metals, with a focus on copper, which accounts for over 50% of total revenue. The company grows organically and by acquisition. After years of trading in a range of $5 to $12, the stock started a strong upward trend in early 2025. It hit an all-time high of $44.48 this year but has since pulled back.

First-quarter financial results showed record revenue of $757.3 million (the company reports in U.S. dollars). Adjusted net earnings attributable to shareholders also set a record in the first quarter, driven by steady operating performance, expanding margins from strong copper and gold exposure, and a focus on cost control across the business. Net earnings were $191.5 million ($0.48 a share). Free cash flow was $102.3 million. The stock does not pay a dividend.

Consolidated copper and gold production was 27,929 tonnes and 61,700 ounces, respectively, in line with expectations.

“Hudbay delivered another quarter of record revenue, record adjusted EBITDA, and record adjusted earnings, driven by steady operating performance, expanded margins from strong copper and gold exposure and a focus on cost control across the business,” said CEO Peter Kukielski. “Our leading operating cost performance resulted in record low consolidated cash costs and contributed to continued strong free cash flow generation in the quarter. All our operations are on track to achieve 2026 production and cost guidance. Building on our commitment to prudent balance sheet management, we ended the quarter with over $1 billion in cash and cash equivalents.”

The company operates high-quality, long-life mines in politically stable, mining-friendly jurisdictions. This includes the Constancia mine in Peru, the Copper Mountain mine in British Columbia, and the Lalor mine in Manitoba, making it the third-largest copper producer in Canada.

Hudbay owns quality properties and is currently operating in a favourable environment. As long as metals continue to be in short supply and high demand, Hudbay stock should continue to flourish.

Mining is notoriously a high-risk business. Among the factors influencing share values are metals prices, exploration and production costs, and the overall state of the stock market. In this case, the risk is compounded by the fact the company is trading near its all-time high.

This stock is suited for aggressive investors who are comfortable with market volatility. Consult your financial advisor before investing, to ensure the stock aligns with you risk tolerance level.

Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website.

Follow Gordon Pape on X at X.com/GPUpdates and on Facebook at www.facebook.com/GordonPapeMoney.

For more information and details on how to subscribe to Gordon’s newsletters, go to www.buildingwealth.ca/subscribe.

Notes and Disclaimer

Content © 2026 by Gordon Pape Enterprises. All rights reserved. Reprinted with permission. The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.

Image: iStock.com/Nordroden