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Metals may rise amid currency risk
Economy
Jefferies published a research note on Friday expressing concern about currency depreciation and the US budget, suggesting that mining stocks could serve as a hedge against these risks.
The company pointed to recent price movements in gold and cryptocurrency as early indicators, noting that it wouldn't be surprised if copper and other industrial metals followed suit. This week, Jefferies initiated coverage of several Canadian copper and gold producers.
The company initiated coverage of Faraday, an early-stage copper miner focused on developing the Arizona copper district, with a "buy" rating. Trekor also received a "buy" rating. Trekor's assets include the Gibraltar copper-molybdenum mine in Canada, the Florence copper project in Arizona, and a number of copper, gold, and niobium projects. Jefferies also initiated coverage of IAG, EGO, HL, and LUNR, noting that the market may be underestimating the impact of growing budget deficits, high debt levels, and currency depreciation.
The company reported a preliminary trade agreement between the US and Canada, which provides for tariff reductions from 50% to 25% on certain US imports of Canadian steel and aluminum, according to Bloomberg and other sources.
BHP's EBITDA, net debt, and dividend for the second half of its 2026 financial year exceeded consensus estimates. Jefferies noted that credit growth in China remains at record lows, and the country's economy continues to face headwinds.