When commodity markets are sluggish, mining stocks tend to fall out of favour. Investors retreat, prices drop, and even the best names can get unfairly punished. But for patient investors, these down periods can be a golden opportunity to load up on future winners, especially those with world-class assets and long runways for growth. One such company is Ivanhoe Mines (TSX: IVN). It’s my pick for the next commodity bull market, and here’s why.
Source: Getty Images
Essential minerals
First off, this isn’t your average mining stock. Ivanhoe Mines is developing some of the most valuable copper, nickel, and platinum assets in the world, all located in the Central African Copperbelt, one of the richest mineral regions on the planet. The flagship Kamoa-Kakula copper project is already in commercial production and set a 2024 record of 437,061 tonnes of copper in concentrate. These underscore its rapid ramp-up. In fact, in its most recent first-quarter (Q1) 2025 earnings, Ivanhoe reported near-record quarterly production of 133,120 tonnes of copper concentrate, nearing a record April.
Those kinds of gains matter. Why? Because copper is essential for everything from electric vehicles (EVs) to power grids, global demand is expected to soar in the coming decade. Supply, however, remains constrained. There haven’t been enough new discoveries or developments to keep pace. That sets up a potentially massive supply-demand gap that Ivanhoe is well-positioned to fill.
But it’s not just the scale of Ivanhoe’s operations that impresses; it’s the margins. The Kamoa-Kakula mine is one of the highest-grade copper operations on earth, with cash costs of just US$1.69 per pound in the latest quarter. That means the company can stay profitable even if copper prices fall, and thrive if they rise. And with copper trading around US$4.50 per pound, there’s plenty of room for strong cash flow.
More to come
Ivanhoe is also building for the future. Construction of its Kamoa-Kakula phase three concentrator is now complete. The company expects to boost output to over 600,000 tonnes of copper annually, placing it among the top five producers globally. That kind of scale doesn’t come cheap, but Ivanhoe is sitting on over US$717 million in cash and continues to attract investment support.
There’s also the Platreef project in South Africa, a monster deposit of nickel, copper, and platinum group metals. Ivanhoe expects initial production from that site in 2025. Once online, Platreef could be another high-margin growth driver. Nickel and platinum are vital for battery tech and hydrogen energy, two trends poised to grow as the world transitions to cleaner energy.
Of course, investing in African mining comes with risks. Political uncertainty, infrastructure challenges, and regulatory hurdles all need to be factored in. But Ivanhoe’s management team has deep experience in the region, and so far, the TSX stock has maintained strong relationships with local governments. As production ramps and more cash comes in, Ivanhoe should gain even more stability and leverage.
Bottom line
Copper has long been called “Dr. Copper” for its ability to diagnose economic health. And if we’re heading into a new global growth cycle, copper demand will likely surge. While many miners struggle to scale or control costs, Ivanhoe Mines has already built a world-class operation with more growth on the horizon.
The market may be sleeping on it now. But when commodities take off again, Ivanhoe has all the ingredients to shine. That’s why it’s my top commodity play for the next bull market.
