Why Mining & Energy Could Drive Canada’s Next Leg Up

Mining and clean energy are converging, so here’s why Lundin Mining and Northland Power are practical TSX plays for the energy transition.

Amy Legate-Wolfe

Author Bio

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. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy 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.

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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 8, 2025 5:00 pm EDT

The future of investment isn’t actually futuristic at all. Investors wanting in on the future of investment need to consider right now what the future holds. And if there are two places that offer stellar opportunities, they are mining and energy.

These two sectors actually connect now more than ever. The global push towards electrification, renewables, batteries, and decarbonization creates a huge demand for critical and transitional minerals. Think copper, nickel, and lithium, amongst others. And luckily, Canada has a lot of these metals. Meanwhile, we’re also investing in clean power, as the demand for renewables ramps up.

So, how can investors get in on these future opportunities today? Let’s look at two perfect options on the TSX today.

A lake in the shape of a solar, wind and energy storage system in the middle of a lush forest as a metaphor for the concept of clean and organic renewable energy. — Source: Getty Images

LUN

First up, we have Lundin Mining (TSX: LUN), a global base-metals miner focusing on copper, zinc, and other metals. Operations range from the Americas to Europe, with activities including mining, exploration, development, and production. The key here, of course, is the company’s investment in critical base metals. These are used in electrification, renewables, and industrial supply chains.

And the company has been investing more than ever in these areas. Clearly, it’s paying off, with revenue coming in at US$937.2 million for the most recent quarter, and free cash flow at US$211 million. It’s also posted guidance of earnings before interest, taxes, depreciation and amortization (EBITDA) of US$8.1 billion between 2025 and 2029!

Now granted, Lundin stock does trade near 52-week highs of $21.71 at writing. It’s also a bit more volatile at 1.9 beta. Yet investors can also grab a 1.1% dividend yield and create a smaller stake in the mining stock. This way, you can hold long term without feeling as though you have too much skin in the game.

NPI

Another solid option is Northland Power (TSX: NPI). This independent power producer focuses on offshore wind, onshore renewables, efficient natural gas generation, and utilities. These create the perfect intersection as a player in the energy transition and large-scale power infrastructure. It also includes partnerships with clean data centre power, an exploding area of investment.

In fact, these investments have proven to do quite well for the energy stock. During recent second quarter earnings, revenue came in at $509 million for the quarter, with free cash flow at $0.22 per share. Operating cash flow surged as well year over year to $451 million. While the stock operates at a net loss, this could in fact be an opportunity to get in before it rebounds.

As with Lundin stock, the energy stock trades near 52-week highs of $25 per share. However, it has far lower volatility at just 0.62 beta. Furthermore, investors can grab a higher 4.8% dividend yield. Therefore, this again is a solid long-term investment, but perhaps less risky than Lundin mining stock.

Bottom line

Clean energy and mining are two areas that have a lot more to gain. Investors wanting to see long-term growth could put even a small stake in these stocks and see them explode over the next few years to come. And these two are perfect options to start out those stakes.