Five Mining Stocks Plunge Amid Concerns the Federal Reserve Could Postpone Interest Rate Reductions

Metals and Mining Stocks Face Headwinds Amid Economic Uncertainty

With inflation remaining stubbornly high and oil prices climbing due to the ongoing conflict involving Iran, the Federal Reserve chose to maintain its key interest rate on March 18. The central bank also indicated that any potential rate reductions may not occur until as late as 2027.

This combination of elevated inflation and surging energy costs is creating significant challenges for metals and mining companies.

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Typically, times of war drive up demand for precious metals such as gold and silver. However, in the current climate, investors are favoring the U.S. dollar and government bonds as safe havens, largely due to the appeal of higher interest rates. As a result, metal prices are falling.

Meanwhile, mining companies are grappling with soaring operational expenses, fueled by rising energy prices. For example, Brent crude oil has jumped over 50% since the start of the Iran conflict.

Given these pressures, it’s no surprise that leading mining stocks are underperforming.

Image source: Getty Images.

Major Declines Among Leading Mining Companies

• Newmont Corporation (NYSE: NEM), the world’s largest gold miner, saw its share price drop 13.5% this week and is down more than 25% since the Iran war began. Barrick Mining (NYSE: B), another major gold producer, has experienced a similar decline.
• Hecla Mining (NYSE: HL), the top silver producer in the U.S. and Canada, has lost over half its value since reaching a 52-week high in late January.
• Wheaton Precious Metals (NYSE: WPM), with significant exposure to both gold and silver, has seen its stock fall 18% in just one week and 30% so far in March.
• Industrial metals companies are also struggling. BHP (NYSE: BHP), the largest mining firm globally, has seen its shares decline by nearly 20% this month.

Is It Time to Sell Mining Stocks?

Investors now face the challenge of determining whether the current downturn is driven by broad economic factors or signals deeper issues within the sector.

The metals and mining industry is currently navigating a tough landscape, with high interest rates, escalating energy costs, a robust U.S. dollar, and concerns about a potential economic slowdown all putting downward pressure on metal prices and testing the strength of even the most established companies.

Despite these obstacles, some industry leaders remain financially sound. For example, Newmont generated a record $7.3 billion in free cash flow in 2025, which it used to reduce debt by $3.4 billion, pay dividends, and repurchase shares. The company also aims to maintain at least $5 billion in cash reserves throughout commodity cycles.

Barrick is also in a solid position, planning to spin off its top North American gold assets into a new company later this year to unlock additional value for shareholders.

Hecla Mining’s financial health remains strong, and the company is preparing to sell a non-performing gold mine, which should provide a timely cash boost.

Wheaton Precious Metals operates as a streaming company, providing upfront capital to miners in exchange for a share of future production. This business model insulates it from rising fuel costs.

BHP continues to generate robust cash flow with high margins. Brandon Craig, a company veteran, will become CEO on July 1, having played a key role in BHP’s strategic shift toward copper to capitalize on trends in electrification and data centers.

Ultimately, as long as the underlying demand for metals remains and you have confidence in your investments, short-term market declines should not deter you.

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Neha Chamaria does not own shares in any of the companies mentioned. The Motley Fool has a position in BHP Group. For more information, see our disclosure policy.