Trump announced a 25 per cent tariff on Canada within two weeks after taking office, and a 10 per cent tariff on Canadian energy. As the global trade landscape is changing, Canada is experiencing challenges as a resource powerhouse, especially in the energy and automotive sectors.
However, for Canadian mining companies, if the Trump tariffs disrupt traditional supply chains, Canadian companies may find opportunities to expand market share, increase production and capitalise on shifts in global demand. In this scenario, stocks like First Quantum Minerals (TSX:FM) and Teck Resources (TSX:TECK.B) have the potential to explode in 2025.
First Quantum Minerals is a leading Canadian mining company that focuses on copper, which plays a vital role in a variety of industries from construction to electric vehicles. Despite facing significant headwinds in 2024 such as production challenges and commodity price volatility, the company reported a gross profit of C$456 million in its third quarter report.
Meanwhile, net income attributable to shareholders was C$0.13 per share. The company stabilised its earnings by taking proactive measures to improve efficiency and streamline costs in the face of a drop in revenue due to weak copper prices earlier in the year.
A key strength of First Quantum is its global diversification. The company operates large mines in Zambia, Panama and Turkey. This means that it is not entirely subject to U.S. trade policy. In fact, changes in global trade dynamics could push the company to expand its market share in Asia and Europe, where demand for copper is growing.
China remains a major importer of raw materials, while Europe is ramping up renewable energy projects that require large amounts of copper. As a result, First Quantum is well positioned to benefit from the changing market landscape. As global electrification continues, copper demand is expected to surge, driving First Quantum shares higher.
Shares in Teck Resources could see a sharp rise in 2025 if trade tensions prompt global buyers to seek alternative suppliers. Unlike First Quantum, which focuses primarily on copper, Teck Resources is a diversified mining company with exposure to a wide range of commodities, including steelmaking coal, zinc and copper. This diversification provides it with a cushion against volatility in any single commodity market, making it an attractive investment in times of uncertainty.
Teck’s recent earnings report shows its position as a mining giant. The company has a current market capitalisation of C$31.5 billion, total cash reserves of C$7.2 billion and a gearing ratio of 36.3%. It’s worth pointing out that Teck’s Quebrada Blanca coal mine in Chile has begun to increase production, with quarterly revenues up 43.7 per cent year-on-year. This strong performance demonstrates the company’s ability to scale its operations and navigate changing market dynamics.
Looking ahead, Teck Resources will benefit from increased global infrastructure spending. If Trump’s tariff policy leads to an increase in U.S. infrastructure projects, demand for steelmaking coal and base metals could rise. Given the company’s solid position in these commodities, this Canadian stock could see a boost in sales and profitability. In addition, Teck’s copper assets will become increasingly valuable as the world transitions to clean energy solutions, enhancing its long-term growth potential.
