Jefferies has initiated coverage on several Canadian-listed copper and gold miners, warning that mining shares may outperform as a hedge against currency debasement and elevated U.S. fiscal deficits.
The investment bank highlighted concerns over the U.S. fiscal trajectory and broader currency risks, noting that recent gains in gold and cryptocurrency prices could precede similar moves in industrial metals. Jefferies initiated buy ratings on Faraday, Trekor, IAG, EGO, HL, and LUNR, emphasizing that the market may be underestimating the implications of rising debt levels and trade policy shifts.
Faraday, an early-stage copper developer focused on Arizona, received a buy rating as part of the coverage expansion. Trekor, which operates the Gibraltar copper and molybdenum mine in Canada and the Florence copper project in Arizona, also received a buy rating. The firm’s asset portfolio spans copper, gold, and niobium, with a project pipeline spanning multiple jurisdictions.
Jefferies also cited a tentative U.S.-Canada trade deal that would reduce tariffs on certain steel and aluminum imports from 50% to 25%. The agreement, reported via Bloomberg, follows broader trade tensions and aims to ease restrictions on key industrial metals.
Separately, BHP reported second-half fiscal 2026 EBITDA, net debt, and dividend figures that exceeded consensus estimates, reflecting stronger-than-expected operational performance. However, Jefferies noted that China’s credit growth remains at a record low, signaling continued economic headwinds for the world’s largest metals consumer.
