RBC analysts have tipped uranium, base and precious metal miners to have a strong year as diversified and fertilizer producers face mixed fortunes.
Each sector bagged an ‘overweight’ rating by analysts from the bank, on strong prospects for the likes of copper and gold, alongside tightness in the uranium market.
The diversified mining sector faced a downgrade from ‘overweight’ to ‘market weight’ in the meantime, bringing it in line with the fertilizer industry's rating.
“We see ongoing challenges in the Chinese property sector,” RBC said on base metals, adding US trade tariffs under incoming president Donald Trump also posed a risk.
“Challenged affordability” among farmers due to weak crop prices also threatened the fertilizer market, analysts added.
That said, the world’s largest fertilizer producer Nutrien Ltd and North American nitrogen pure-play CF Industries Holdings Inc (NYSE:CF) were picked out by RBC as its “best” sector stock ideas for 2025.
Among diversified firms, Glencore PLC (LSE:GLEN), Vale SA, Champion Iron Ore Ltd bagged RBC’s support.
Capstone Copper Corp, Ivanhoe Mines Ltd, Teck Resources Ltd (TSX:TECK.B), Hudbay Minerals Inc, Sandfire Resources Ltd, Pilbara Minerals Ltd (ASX:PLS) were cited across the base metals sector.
Copper’s outlook in particular looked “constructive,” analysts said, given supply constraints but energy transition-driven demand.
A similar story in the uranium market, with strong demand on renewed nuclear energy plans but potential supply shocks, was also cited as RBC named Cameco Corp and NexGen Energy Ltd as its top sector picks.
For precious metals, a string of companies were flagged by RBC, as “key central bank and investor purchasers” were seen boosting gold further from its record highs of 2024.
“We view valuation and the sector’s growing emphasis on return of capital as a potential opportunity,” the bank said.
RBC’s ‘best’ precious metal company ideas:
- Agnico Eagle Mines Ltd (TSX:AEM)
- AngloGold Ashanti (ASX:AGG) Ltd
- Gold Fields Ltd
- Osisko Gold Royalties Ltd
- G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF)
- Torex Gold Resources Inc (TSX:TXG)
- Coeur Mining (NYSE:CDE) Inc
- Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF)
- Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF)
- Westgold Resources Ltd (ASX:WGX, OTC:WTGRF)
- Bellevue Gold Ltd (ASX:BGL)