With inflation still high and oil prices rising due to the ongoing conflict with Iran, the Federal Reserve decided to keep its benchmark interest rate steady during its March 18 meeting. This suggests that any potential rate cuts might be postponed until 2027.
It’s not just the economy; metal and mining stocks are feeling the pinch.
Metal prices are declining sharply, which is interesting since wars typically boost the demand for precious metals like gold and silver. But this time around, elevated interest rates have made the U.S. dollar and bonds more appealing as safe investments.
At the same time, miners are facing skyrocketing operational costs because of rising fuel expenses. For instance, Brent crude oil prices have surged by over 50% since the conflict began.
It’s not surprising, then, that major mining stocks are having a tough time holding their ground.
For example, shares of Newmont Co., Ltd. have dropped 13.5% just this week and over 25% since the start of the conflict. Similarly, Barrick Mining has seen a comparable decline.
Hecla Mining’s stock price has plummeted more than 50% from its peak in late January. Hecla is recognized as the largest silver producer in both the United States and Canada.
Another significant player, Wheaton Precious Metals, which is about 52% linked to gold and 46% to silver, has seen its stock decline by 18% in just one week and about 30% over the course of March.
Industrial metal stocks are also in a tough spot, with shares of BHP down nearly 20% this March.
A key factor now is figuring out whether these declines are driven by broader market issues or point to deeper, fundamental problems.
The metals and mining sector is stuck between high interest rates, climbing energy costs, a strong dollar, and worries about economic slowdown. Each of these factors is exerting downward pressure on metal prices while testing the endurance of established miners.
For instance, Newmont achieved a record free cash flow of $7.3 billion in 2025 and effectively used it to reduce its debt by $3.4 billion, all while paying dividends and buying back stock. The company plans to maintain at least $5 billion in cash throughout its product cycle.
Barrick Mining is also making strategic moves by planning to separate its North American gold assets into a different company, aiming to maximize shareholder value.
Hecla is in a strong position as well; it’s looking to sell its unprofitable gold mines, which could provide much-needed cash at a crucial time.
Wheaton Precious Metals operates a streaming model. Basically, you pay up front to the miner for the right to buy a portion of future metal output, which means the rising fuel costs don’t impact them directly.
BHP remains a solid performer with strong profit margins. Brandon Craig, a long-time company veteran, will step into the CEO role on July 1, continuing its shift toward copper amidst growing demands for electrification and data centers.
Overall, as long as there’s a solid demand for metals and investor confidence remains, there shouldn’t be too much concern over a sharp market sell-off.
Before considering an investment in Newmont stock, you might want to weigh some alternatives.
According to analysts, there are other stocks that might offer greater potential, and Newmont didn’t make the cut. These options could lead to impressive returns in the following years.
It’s worth pondering what long-term investments like Netflix or Nvidia might yield if chosen wisely from the start.
Ultimately, the performance of Total includes an impressive average return relative to the S&P 500. So maybe it’s worth keeping an eye on newer opportunities as well.
