Gold and copper prices have been on a tear, and that momentum is pulling some of Canada’s biggest miners into the spotlight. Agnico Eagle Mines (TSX:AEM) and Lundin Mining (TSX:LUN) have both been trending lately, riding strong commodity prices and operational wins. But with both mining stocks already showing big moves, the question is whether there’s still upside for new investors.
Source: Getty Images
AEM
Agnico Eagle has been one of the TSX‘s standout performers over the past year, with its share price up more than 75% and recently hitting an all-time high. That’s been fuelled by a mix of strong gold prices and exceptional operational execution.
In the second quarter (Q2) of 2025, the mining stock delivered payable gold production of over 866,000 ounces at total cash costs of just $933 per ounce, well below the mid-point of its guidance. Revenue jumped thanks to a realized gold price of $3,288 per ounce, while net income surged to $1.07 billion, more than doubling from the same quarter last year.
Perhaps more impressive, free cash flow hit a record $1.3 billion, allowing Agnico to pay down debt, build a net cash position, and return $300 million to shareholders through dividends and buybacks. The pipeline looks healthy too, with key growth projects like Canadian Malartic, Detour Lake, and Upper Beaver advancing on schedule. The risk for investors is obvious: gold prices have been a major tailwind, and if these retreat, margins and sentiment could take a hit. But with a strong balance sheet and a disciplined approach to capital spending, Agnico is in a good position to weather a softer market.
LUN
Lundin Mining is coming at the rally from a different angle. Its share price is up over 26% in the past year, boosted by solid copper production and a strategic shift toward long-term growth. Q2 2025 saw copper output of just over 80,000 tonnes, alongside nearly 38,000 ounces of gold, with consolidated copper cash costs dropping to $1.92 per pound. Revenue rose to $937 million, while net earnings from continuing operations climbed to $126 million.
The big headline, though, was the $1.4 billion sale of its European assets, which allowed Lundin to slash net debt to just $135 million. That gives the mining stock flexibility to invest in its ambitious growth plans, particularly the Vicuña Project. This project could become one of the world’s largest copper, gold, and silver mining complexes.
The project’s resource estimates are massive, but development will take years, and investors will need to be patient. In the meantime, Lundin looks to boost production through brownfield expansions and incremental efficiency gains at existing mines. Commodity price swings remain the biggest short-term risk, especially given copper’s volatility, but the mining stock’s improving cost profile and cleaner balance sheet give it more room to manoeuvre.
Bottom line
The challenge with both stocks is valuation. After big gains, neither is a bargain by traditional metrics, and any pullback in metal prices could cool the momentum quickly. Still, if you believe the macro backdrop for gold and copper remains supportive, these miners could have more room to run. The key will be whether they can keep delivering on costs, production, and project timelines while staying disciplined with capital. But these do offer a dividend, with a $5,000 investment in each bringing in about $95 each year.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| AEM | $183.75 | 27 | $2.22 | $59.94 | Quarterly | $4,961.25 |
| LUN | $15.73 | 318 | $0.11 | $34.98 | Quarterly | $5,001.14 |
In short, Agnico Eagle looks like the steadier, cash-rich play on gold, while Lundin offers more long-term torque from copper growth. Both are trending for good reason, and while buying after a big run always carries risks, those betting on sustained strength in precious and base metals may find either, or both, worth a closer look.
