Jefferies sees metals breakout on currency concerns

Investing.com -- Jefferies issued a research note on Friday highlighting concerns about currency debasement and the US fiscal situation, suggesting mining shares could serve as a hedge against these risks.

The firm pointed to recent price movements in gold and cryptocurrency as early indicators, stating it would not be surprised if copper and other industrial metals follow suit. Jefferies initiated coverage on several Canadian-listed copper and gold miners this week.

The firm initiated coverage on Faraday, an early-stage copper development company focused on developing an Arizona-based copper district, with a buy rating. Trekor also received a buy rating initiation. Trekor's assets include the Gibraltar copper and molybdenum mine in Canada, the Florence copper project in Arizona, and a pipeline of projects in copper, gold and niobium.

Jefferies also initiated coverage on IAG, EGO, HL and LUNR, stating the market may be underestimating the implications of growing fiscal deficits, elevated debt levels and currency debasement.

The firm reported on a tentative trade deal between the US and Canada that would lower tariffs from 50% to 25% on certain US imports of Canadian steel and aluminum, according to Bloomberg and other sources.

BHP's reported second half fiscal year 2026 EBITDA, net debt and dividend all beat consensus estimates. Jefferies noted China credit growth remained at a record low, with the country's economy continuing to face headwinds.

You May Also Be Interested In

• BofA maintains underperform ratings on six BDC stocks
• Myriad Uranium completes acquisition of Rush Rare Metals
• Alzamend Neuro (ALZN) files for 98.4M share offering by selling stockholders