Q2’26 preview: a sector in search of a catalyst amidst significant macro volatility

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Q2’26 preview: a sector in search of a catalyst amidst significant macro volatility

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North American Metals & Mining

Q2’26 preview: a sector in search of a

catalyst amidst significant macro volatility

Industry Overview

Can management teams manage the Q2’26 cost spike? 09 July 2026

The North American (NA) Metals & Mining (M&M) sector is to kick off Q2’26 results Equity

reporting next week with aluminum producer, Alcoa (AA). Releases are set to pick-up the North America

following week with the copper, precious metals, and steel subsectors represented by Metals and Mining

Freeport McMoRan (FCX), Newmont (NEM), Reliance (RS), and Steel Dynamics (STLD).

Lawson Winder, CFA >>

The ability of the sector to manage the Hormuz-driven Q2’26 inflation spike should be Research Analyst

key to share price performances this earnings season. Stand-outs in Q2’26 among our Merrill Lynch (Canada)

+1 416 369 7592

broader NA M&M coverage include: Cameco (CCJ) for its multi-faceted exposure to lawson.winder@bofa.com

nuclear, including rising uranium prices; FCX as it ramps back-up its Grasberg copper Sathish Kasinathan

mine; and Pan American Silver (PAAS) for its aggressive capital return policy. Research Analyst BofAS

Execution critical in down metal markets +1sathish.kasinathan@bofa.com646 855 2769

Execution is never more important in the Metals & Mining sector as when metal prices Adam Smiarowski, CFA >>

are soft. Thus, with average Q2’26 gold, silver, and uranium prices down 7.5%, 12.6%, ResearchMerrill LynchAnalyst(Canada)

and 1% vs. Q1’26 (and copper (+4%) and other base metals up modestly vs. unit cost +1 416 369 7780

increases (+9%)), companies that effectively manage the Q2’26 cost inflation spike, adam.smiarowski@bofa.com