The global trade landscape is shifting once again, and Canada’s resource-heavy economy is feeling the impact. With U.S. President Donald Trump back in the headlines over his proposed trade policies, speculation is mounting about the potential imposition of tariffs on Canadian exports. While tariffs generally spell trouble for industries that rely heavily on trade with the United States, Canada’s mining sector may have a different story to tell.
In particular, two mining giants, First Quantum Minerals (TSX:FM) and Teck Resources (TSX:TECK.B) are poised to benefit from the changes. If tariffs disrupt traditional supply chains, these Canadian stocks could find new opportunities to expand their market share, increase production, and capitalize on shifting global demand.
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First Quantum Minerals
First Quantum Minerals is a leading Canadian mining company specializing in copper, a metal that remains in high demand due to its essential role in everything from construction to electric vehicles. Despite facing significant headwinds in 2024, including production challenges and fluctuating commodity prices, First Quantum has remained resilient. In its third-quarter earnings report for 2024, the company posted a gross profit of $456 million. Meanwhile, net earnings attributable to shareholders came in at $0.13 per share. While revenue saw some decline due to weaker copper prices earlier in the year, the Canadian stock has taken proactive steps to enhance efficiency and streamline costs.
One of First Quantum’s key advantages is its global diversification. The company operates large-scale mines in Zambia, Panama, and Turkey. This means it is not entirely dependent on U.S. trade policies. In fact, a shift in global trade dynamics could push First Quantum to expand its market presence in Asia and Europe, regions with growing demand for copper. China remains a major importer of raw materials, and Europe is ramping up renewable energy initiatives that require vast amounts of copper. Therefore, First Quantum is well-positioned to benefit from a changing market landscape.
The Canadian stock has been volatile over the past year, but analysts remain optimistic about its long-term prospects. With copper demand expected to surge as the global push for electrification continues, First Quantum stands to gain significantly from both higher prices and increased production. Investors looking for exposure to the commodities sector should keep an eye on this stock, as it could be primed for substantial upside in 2025.
Teck Resources
Teck Resources is another Canadian mining leader that could see significant upside in 2025, especially if trade tensions push global buyers to seek alternative suppliers. Unlike First Quantum, which focuses primarily on copper, Teck Resources is a diversified mining company with exposure to multiple commodities, including steelmaking coal, zinc, and copper. This diversification provides Teck with a buffer against volatility in any single commodity market, making it an attractive investment in uncertain times.
Teck’s recent earnings report showcased impressive numbers, reinforcing its status as a financial powerhouse in the mining sector. As of writing, the company reported a market capitalization of $31.5 billion, with total cash reserves of $7.2 billion and a debt-to-equity ratio of 36.3%. More notably, Teck’s Quebrada Blanca mine in Chile has ramped up production, contributing to a 43.7% year-over-year increase in quarterly revenue growth. This strong performance is a testament to Teck’s ability to scale operations and navigate shifting market dynamics.
Looking ahead, Teck Resources could benefit from higher infrastructure spending worldwide. If Trump’s tariffs lead to increased infrastructure projects within the U.S., demand for steelmaking coal and base metals could rise. Given Teck’s strong foothold in these commodities, the Canadian stocks could see a boost in sales and profitability. Furthermore, as the world transitions to cleaner energy solutions, Teck’s copper assets will become increasingly valuable, reinforcing its long-term growth potential.
Foolish takeaway
As we head into 2025, investors looking for commodity-driven growth should keep these two stocks on their radar. With the potential for higher commodity prices, increased global demand, and a weaker Canadian dollar playing to their advantage, First Quantum and Teck Resources could explode in value, making them standout picks in an uncertain market.
