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Agnico Eagle, Cameco and Freeport-McMoRan named as Bank of America’s top mining picks for 2026

Bank of America has named Agnico Eagle Mines Ltd (TSX:AEM)[1], Cameco Corporation (TSX:CCO)[2] and Freeport-McMoRan Inc (NYSE:FCX, XETRA:FPMB)[3] as its top equity picks for 2026 across the North American metals and mining (M&M) sector, citing supportive macro conditions, selective valuation opportunities and constructive commodity price forecasts. In a year-ahead outlook, the bank wrote that the recommendations follow its recent commodities update and reflect a preference for precious metals alongside targeted exposure to nuclear fuel and copper. Bank of America identified Agnico Eagle Mines as its preferred name in precious metals, Cameco as its top pick in nuclear energy and fuel, and Freeport-McMoRan as its favored copper exposure.

The bank said its positive stance is underpinned by several macro themes. "We expect rising US industry policy, a potentially weak USD, geopolitical tensions, and US tariffs to be key macro themes for the M&M sector in 2026," the analysts wrote. Within precious metals, Bank of America said it views the sub-sector as the most attractive area of coverage. The analysts highlighted Agnico Eagle's execution and growth profile, pointing to its operating track record and project pipeline.

They also flagged Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS)[4] as a way to gain gold and silver exposure, but cautioned on expectations. Explaining the rationale behind its top picks, the bank said Agnico Eagle stands out for its consistency and upside potential. "For AEM, we like management's track record of meeting or exceeding targets, suite of attractive growth projects, substantial exploration upside potential, and recent relative share price underperformance," the analysts wrote. Cameco was highlighted for its positioning across the nuclear fuel cycle and the potential for a rebound in uranium prices later in the year. "For CCJ, we see significant potential hidden value, like its diversified exposure across the nuclear energy and fuel supply chains, we see a sharp H2 2026 price recovery for uranium (CCJ's key product), and see the shares reasonably valued," the analysts wrote.

For copper, Bank of America said recent weakness in Freeport-McMoRan shares has created a buying opportunity. "For FCX, we see recent share price underperformance presenting a particularly attractive buying opportunity for a portfolio of world-class copper assets, with falling unit costs, meaningful gold exposure, and driven by a strong management team with deep experience," the analysts wrote. On commodity fundamentals, the bank remains constructive on copper despite uneven global demand. It expects softer consumption in China to be offset by a recovery in the US and Europe, alongside supply constraints and trade protection.

Bank of America forecasts copper prices rising 18% year over year to average £5.33 per pound in 2026. The outlook is especially bullish for precious metals. The analysts said many of the factors that have supported gold remain in place, forecasting gold to average £4,538 per ounce in 2026, up 32% year over year, with a stated price target of £5,000 per ounce.

The bank's commodities team also expects silver prices to average £60 per ounce in 2026. In steel markets, Bank of America struck a more cautious tone on flat-rolled products amid rising domestic capacity and low import levels, while favoring long products. It expects US hot-rolled coil prices to average £840 per short ton in 2026, down 1% year-over-year, compared with rebar prices averaging £892 per short ton, up 10%.

Uranium remains a key area of conviction, with Bank of America pointing to structural demand growth and tight supply. The analysts said rising electricity demand, US trade policy, Japanese reactor restarts and mine disruptions are central themes, alongside the return of US utility buying later in the year. They forecast uranium prices rising 43% year-over-year to £105 per pound in 2026.

Reflecting its outlook, Bank of America raised its price objectives for Cameco and Freeport-McMoRan to £125 (C£175) and £68, respectively, from £115 (C£160) and £58, citing higher valuation multiples aligned with stronger uranium and copper price expectations.

References

  1. ^ Agnico Eagle Mines Ltd (TSX:AEM) (www.proactiveinvestors.com)
  2. ^ Cameco Corporation (TSX:CCO) (www.proactiveinvestors.com)
  3. ^ Freeport-McMoRan Inc (NYSE:FCX, XETRA:FPMB) (www.proactiveinvestors.com)
  4. ^ Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS) (www.proactiveinvestors.com)