If investors believe that inflation will fall faster than the general market expects, copper stocks on the Toronto Stock Exchange are worth paying attention to in their investment portfolios. When inflation cools faster than expected, the market usually begins to digest expectations of interest rate cuts, improved financing conditions, and the weakening of the economic slowdown narrative. This often first benefits stocks sensitive to the economic cycle, especially those closely related to the construction industry, manufacturing sector, and energy transition. Here are three Canadian copper stocks worth considering.
Teck Resources is a mining company increasingly focusing on its copper business. The biggest change for the company over the past year has been the sale of its steelmaking coal business, establishing a new positioning away from coal, making its performance more directly related to copper and the electrification theme. Recently, market attention has focused on Teck’s strong copper production and prices, while rumors surrounding a major copper merger with Anglo American continue to attract investor interest.
The latest financial report shows the importance of the backdrop of cooling inflation for such companies. In the fourth quarter of 2025, Teck Resources reported revenue of C$3.06 billion, adjusted EBITDA of C$1.5 billion, and adjusted profit from continuing operations of C$671 million, or C$1.37 per share. The company reaffirmed its 2026 copper production guidance, expecting between 455,000 and 530,000 tonnes, with its growth outlook unchanged.
First Quantum Minerals is a copper mining company whose market sentiment is primarily dominated by the situation surrounding the Cobre Panamá mine and Panama. Over the past year, investors have closely watched any viable progress regarding this mine, while the company’s other assets have strived to support performance.
In the fourth quarter of 2025, the company reported a gross profit of C$416 million, EBITDA of C$464 million, net earnings attributable to shareholders of C$0.03 per share, and adjusted earnings per share of C$0.01. Results benefited from higher realized prices for copper and gold. If inflation cools and interest rates are cut, the stock could benefit from improved risk appetite, but the real catalyst remains an operational and political solution.
First Quantum is the highest-risk, highest-potential-upside stock on this list. Due to the unresolved issues at the Cobre Panamá mine, the current share price reflects uncertainty. Should political conditions take a favorable turn, the stock could rebound quickly.
Hudbay Minerals is another copper-related stock, whose diversified operating platform provides production and growth options. Over the past year, the company successfully navigated operational setbacks, including a wildfire evacuation in Manitoba and temporary disruptions in Peru, while still achieving its production guidance.
Hudbay delivered strong performance in 2025, achieving record annual revenue of C$2.2 billion and record annual adjusted EBITDA of C$1.1 billion, reporting copper production of 118,188 tonnes and gold production of 267,934 ounces. If interest rates fall, market tolerance for growth projects and capital expenditures may increase, but core risks remain: commodity price volatility and cost pressures can still quickly impact performance.
These three companies offer investors different options for positioning under a cooling inflation scenario: Teck Resources represents scale advantages and potential M&A opportunities, First Quantum Minerals offers a high-risk, high-reward proposition, and Hudbay Minerals demonstrates operational resilience. If you are looking to position your portfolio for a more favorable macroeconomic environment, while maintaining a clear awareness of the ever-present commodity and project risks, these are the types of Canadian stocks worth watching.
