Mining Stocks “Gold Rush” 2025: Jefferies Prefer Tek.US (TECK.US), Alcoa (AA.US)

The Zhitong Finance App notes that TECK.US (TECK.US), Alcoa (AA.US), Glencore, and Anglo-American Resources Group were selected by Jeffrey as the first choice for this year's mining stocks on Monday.

Jefferies analyst Christopher La Femina said, “Although we have recently become more cautious about the short-term outlook for the industry due to cyclical factors, and we think the risk that is generally expected is downside, we believe it is too late to downgrade our rating.” “After the recent sharp weakening, we tend to buy the mining and steel producers we are optimistic about.”

Jefferies believes that the “special factors” driving the 2025 stock price performance include: Anglo-American Resources Group is in a spin-off model and may become an acquisition target in 2025; Glencore may increase capital returns and may move to the US — which will benefit stock liquidity; and Tektronix Resources may be the target or acquirer.

The bank also said that although Freeport McMoRan (FCX.US) is highly valued and faces challenges in Indonesian concentrate exports, it is optimistic about the stock, as well as Lundin Mining, due to its long-term investment in copper.

Jeffrey wrote, “Most importantly, 2025 will be an eventful year for the metals and mining industry. So the question is: 'Does all of this have an impact on industry stock valuations or the interest of ordinary investors? We believe it will have an impact in the end.”