With inflation persistently high and oil prices surging because of the ongoing Iran war, the Federal Reserve kept its benchmark interest rate steady on March 18 and signaled that interest rates cuts will be delayed, possibly until 2027.
That's a double whammy for metals and mining stocks.
On the one hand, metal prices are tanking. A war traditionally boosts demand for precious metals like gold and silver. This time, however, the U.S. dollar and bonds have emerged as the chosen safe-haven assets, thanks to high interest rates.
On the other hand, operational costs for miners are exploding on higher fuel costs. Brent crude oil price, for instance, has surged more than 50% since the Iran war.
Not surprisingly, the major mining stocks are struggling to hold their ground.
Image source: Getty Images.
The biggest metals and mining losers
Shares of the world's largest gold miner, Newmont Corporation (NEM 0.71%), sank 13.5% this week and have dropped over 25% since the Iran war. Shares of Barrick Mining (B 1.30%), another top gold producer, have fallen nearly as much.
Hecla Mining (HL 2.79%) stock has plunged over 50% from its late-January 52-week high. Hecla is the largest silver miner in the U.S. and Canada.
Another notable name is Wheaton Precious Metals (WPM 2.19%), which has roughly 52% exposure to gold and 46% to silver. The stock has lost 18% value in one week and 30% in March so far.
Industrial metals and mining stocks are also feeling the pinch. Shares of the world's largest mining company, BHP (BHP 0.89%), have fallen nearly 20% in March so far.
Should you sell mining stocks now?
The critical challenge in the current environment is distinguishing between a macro-driven sell-off and a fundamental collapse.
Right now, the metals and mining sector is caught between high interest rates, surging energy costs, a stronger dollar, and fears of an economic slowdown, all of which are weighing on metal prices and testing the resilience of even the most established miners.
Newmont, for instance, generated record free cash flow of $7.3 billion in 2025 and used it judiciously to cut $3.4 billion in debt while paying dividends and repurchase shares. Newmont wants to hold a minimum cash balance of $5 billion through commodity cycles.
Barrick is also in a strong position, with plans to spin off its premier North American gold assets into a separate company later this year to unlock greater value for its shareholders.
Hecla's balance sheet, too, is in top shape, and it is about to sell a non-performing gold mine. That should infuse cash at a crucial time.
Wheaton Precious Metals is not even a miner. It is a streaming company, which means it pays upfront cash to a miner and gets the right to purchase a percentage of future metal production from the mine. So high fuel costs don't hurt Wheaton.
BHP is a cash flow machine with superior margins. Company veteran Brandon Craig will take over as the CEO on July 1. Craig has been instrumental in BHP's pivot to copper, positioning it to ride the electrification and data center trends.
Point is, as long as the fundamental demand for metals persists and your conviction in a stock doesn't waver, do not let sell-offs scare you.
