Kepler Cheuvreux Names Top 5 European Mining Stocks for Critical Minerals Boom

Investing.com -- European mining and metals companies with exposure to critical minerals are attracting investor attention as the continent seeks to secure supply chains for energy transition materials. A recent analysis by Kepler Cheuvreux highlights five standout companies positioned to benefit from growing demand for minerals essential to decarbonization technologies.

The research identifies companies across various segments of the mining value chain, from equipment manufacturers to mineral processors and recyclers, all carrying "buy" ratings based on their strategic positioning and growth prospects.

Imerys received a "buy" rating with a target price of EUR34 and a market capitalization of EUR1.8 billion.

The company’s Emili lithium project at its Beauvoir site in France represents one of Europe’s largest hard-rock lithium deposits, with estimated resources of 373 million tonnes at approximately 1.00% lithium oxide grade.

The project targets annual output of 34,000 tonnes of lithium hydroxide with extraction costs estimated at EUR7,000-9,000 per tonne.

Commercial production is expected around 2030, with the European Commission designating it as a strategic project in March 2025, providing accelerated permitting and financial support.

FLSmidth holds a "buy" rating with 14% upside potential and a market capitalization of EUR3.8 billion.

The company manufactures equipment for mineral processing across the value chain, serving copper, lithium, nickel, and other critical mineral projects.

Despite commodity price volatility, FLSmidth maintained stable operating margins over the past decade, averaging mid-teens return on invested capital between 2015 and 2025.

Metso Corporation received a "buy" rating with 9% upside and a market capitalization of EUR11.8 billion. The company supplies technology and equipment for mining operations, including grinding mills, flotation systems, and refining equipment.

Metso posted average operating margins above 15% over the 2014-2025 period and delivered return on invested capital consistently above 20%.

In recent developments, Metso Corporation reported a 13% decrease in first-quarter sales to EUR 1,299 million, with an adjusted EBITA of EUR 210 million. Concurrently, Morgan Stanley upgraded the company’s rating to ’Overweight’.

Befesa carries a "buy" rating with 29% upside potential and a market capitalization of EUR1.1 billion. The company recycles steel dust and aluminum salt slags, recovering zinc and aluminum that can displace primary mineral production.

Zinc plays a role in galvanizing steel used in wind energy infrastructure. Befesa’s operations span steel mill residue processing and aluminum recovery, with operating margins between 15% and 25% over the past decade.

Befesa announced its first-quarter results, with adjusted EBITDA rising 15% year-over-year to €45.1 million on revenue of €280.1 million.

Aurubis holds a "buy" rating with 14% upside and a market capitalization of EUR4.9 billion.

As Europe’s largest copper recycler, the company processes both primary copper concentrates and secondary materials to produce refined copper cathodes and specialty products.

Aurubis’s integrated facilities can process mixed, impurity-rich scrap to produce 99.99% purity copper suitable for high-conductivity applications.

For the second quarter of its 2023/24 fiscal year, Aurubis reported operating EBT of €166 million, a 31% decrease from the prior year, on revenue of €4.0 billion, while confirming its full-year forecast.

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