Why Investors Should Watch Mining Stocks This Season

Agnico Eagle and Lundin Mining are converting soaring gold and copper prices into big cash flow and project optionality, so here’s why they deserve a spot on your watchlist.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 6, 2025 8:30 pm EDT

| More on: AEMLUN

Key Points

Agnico Eagle delivered record free cash flow ($1.3B Q2), went net‑cash, returned $300M, and renewed a $1B buyback—defensive gold exposure.
Lundin Mining posted strong revenue ($937M) and FCF ($211M), produced ~80,000t copper in Q2, and has transformative Vicuña upside.
Both offer long‑term metals upside, but watch gold/copper price swings, project timing and capital costs that can dent returns.

Investors may have already noticed that the price of gold has absolutely skyrocketed. Yet it’s not the only investment doing so. The price of copper has also been climbing after hitting all-time highs and taking a dip in the last year or so. And there’s a difference between gold and copper. Gold can’t be used for much, but copper? It’s an essential part of our everyday lives.

That’s why today we’re going to look at two companies taking advantage of both. While gold can be mined and used to help fund these companies, copper is the real long-term money maker. So, let’s look at two gold and copper stocks that belong on your mining watchlist.

People walk into a dark underground mine. — Source: Getty Images

AEM

First up, we have Agnico Eagle Mines (TSX:AEM), a gold stock showing its strengths on the TSX today. The company should be on everyone’s radar this season as a top-tier gold producer. During its most recent earnings, it reported record free cash flow, net cash balance sheet, and aggressive capital returns. This all makes it a high-quality, lower-risk way to play the gold rally.

All this came about to surge share prices after its second-quarter earnings. Net income hit $1.07 billion, with operating cash flow at about $1.85 billion. And again, free cash flow hit a record $1.3 billion for the quarter. During the quarter, $300 million was returned to shareholders through buybacks and dividends, with the buyback renewed up to $1 billion.

The key risks for AEM will be, of course, the price of gold. A sharp drop could compress margins and free cash flow, pressuring the share price as well. Large projects can also run over both in terms of time and costs. Plus, expectations are high, making this a defensive, but expensive stock.

LUN

Then there’s Lundin Mining (TSX:LUN) for a copper play. It’s a must-watch if you want to target copper, as well as other essential metals. For instance, the Vicuña resource and brownfield expansions are massive opportunities that could be transformative — all while the copper stock continues to perform quite well.

During the second quarter, Lundin stock hit revenue of $937 million, with free cash flow at $211 million. Copper production was quite solid at 80,000 tonnes in the second quarter, and 156,847 tonnes so far this year! This is due to rise even higher, with Vicuña one of the world’s largest copper, gold and silver resources. If developed, it could underpin enormous growth over the long term.

Now, again, it remains to be seen when and how much it will cost to finish up Vicuña. So, this is a long-term play. Plus, it’s not cheap either, as with AEM stock. And as with gold, the price of copper can also drop. However, overall, it looks like a top investment for investors seeking exposure to copper.

Bottom line

Both AEM stock and LUN stock are two excellent options for investors seeking strength in copper and gold prices. While both are a bit expensive, investors are buying for the long term. So, certainly consider these on the TSX today.