Cameco (TSX: CCO; NYSE: CCJ), Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF), Agnico Eagle Mines (TSX: AEM; NYSE: AEM) and Steel Dynamics (Nasdaq: STLD) are Bank of America’s top choices for mining and metals stock performers this year.
“For Cameco, we see significant potential hidden value (up to +US$22.30 per share), like its diversified exposure across the nuclear energy and fuel supply chains,” lead author Lawson Winder said in a report on Monday. “We are bullish uranium (Cameco’s key product), and see the shares attractively valued.”
The analysts predict peer-leading production growth, a competitive cost profile and copper exploration potential at Ivanhoe Mines. Agnico has a track record of meeting or beating targets, attractive growth projects as well as exploration potential.
Prices for hot-rolled coil and coated steel are to benefit Steel Dynamics this year, the analysts said, as it completes an aluminum rolling mill project and increases free cash flow.
Geopolitical tension
The metals and mining industry is set against a backdrop of geopolitical tension, foreign exchange volatility and resource nationalism, according to the researchers. Uranium and copper are benefiting from the energy transition, steel is gaining from a resurgence in non-residential construction while central bank buying and Asian demand is supporting the gold price, the analysts said.
The bank expects resources nationalism – like in Mali, Panama, Niger and the United States – to continue, with higher local fees and tariffs used as instruments to impact aluminum, rare earths, steel and uranium. Also, the strong U.S. dollar versus the currencies of most countries that host mining and metals operations should benefit companies that have operations outside for the U.S., it said.
Uranium is the bank’s highest conviction trade, with the spot price expected to average 36% higher year on year. Uranium was at US$75 per lb. on Monday, down from US$106 per lb. almost a year ago, according to Trading Economics.
“We think strengthening electrical energy demand growth, trade, global nuclear restarts, nuclear new builds, continued mine supply disruptions, and the return of utility buying are key themes to watch in 2025,” the bank said. “Purchase volumes in 2024 were depressed. These pushed-out purchases imply stockpile depletion, and thus heightened buying to come.”
US$3,000 gold
The bank’s 12-month gold target price is US$3,000 per oz., with the price to average 15% more year on year as demand outpaces falling expectations of U.S. Federal Reserve interest rate cuts. Gold fell US32¢ on Monday to US$2,637.03 per oz., according to Mining.com.
In steel and copper, tariffs and second-half supply challenges could also help prices. The red metal’s price should average 2% higher year on year, the bank said. The copper price was US$3.98 on Friday, according to Mining.com.
Bank of America also says it’s bullish on rare earth elements neodymium and praseodymium, aluminum and silver while bearish on platinum group metals and neutral other metals.
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