Mining Shares Steadily Climbing in Canada: Mkango Completes Spin-off Announcement, Jumps 90%
In the second quarter of 2025, the Canadian mining sector experienced a significant resurgence, with several companies showcasing robust performance and strong growth potential. The top performers in this period include Cameco Corp., OR Royalties Inc., Mkango Resources, Excellon Resources, Benz Mining, and Aris Mining.
Cameco Corp., one of the best-performing large-cap stocks on the TSX, recorded a 67.6% gain in Q2 2025. This impressive performance was aided by the rebound of Canadian equities, as the S&P/TSX Composite Index gained 7.3%, thanks to easing trade war concerns and strong corporate profits.
OR Royalties Inc. reported record Q2 revenue of $60.4 million, producing 19,700 gold equivalent ounces and maintaining a high cash margin of 95.8%. The company demonstrated financial strength by reducing debt and holding a solid cash position. Analysts are optimistic about OR Royalties, with price targets reaching up to $29.99.
Mkango Resources gained 90% recently, reflecting investor enthusiasm around its exploration prospects. The company is also advancing its recently acquired Mallay silver mine in Peru, aiming to bring it back into production.
Excellon Resources is making strides with its mine restart strategies, and production is expected to significantly ramp up by Q2 2026. The company has also strengthened its board with the appointment of a seasoned mining executive.
Benz Mining is progressing with gold projects in Quebec and Australia, which indicate strong growth potential. The company's flagship Eastmain project, located in Central Quebeck, shows promise within the Upper Eastmain Greenstone belt.
Aris Mining exhibited strong gold production growth in H1 2025, with Q2 production up 7% quarter-on-quarter and sales up 12%. The company's operational scale and successful mill expansion support a positive outlook amid favorable gold prices.
Recent economic events, such as the easing of U.S.-Canada trade tensions, have contributed to the strong performance of Canadian mining stocks. The rally was driven by relief over reduced tariff risks and robust corporate earnings across sectors, including materials and mining. Precious metals royalties and streaming companies like OR Royalties benefited from strong gold prices and high margins despite macroeconomic uncertainties.
In addition to these success stories, other mining companies like Oceanic Iron Ore and Lithium South also reported impressive gains. Oceanic Iron Ore had a weekly gain of 46.81%, while Lithium South saw a weekly gain of 50%.
The mining and mining exports sector showed a modest 0.4% growth in Q1 2025, with manufacturing of metallic mineral products growing 4% and non-metallic mineral extraction rising 3.2%. The energy subsector also showed a 2.2% growth, driven by increases in crude oil and electricity.
However, energy exports started the year on a slightly negative note, with a 1.8% decline due to a 12.4% decrease in outgoing refined petroleum products. Despite this, the overall outlook for the Canadian mining sector remains positive, underscoring its resilience and potential in the current economic environment.
Gold investing in the second quarter of 2025 saw a boost in the Canadian mining sector, as Cameco Corp., one of the top performers, recorded a 67.6% gain. OR Royalties Inc., another industry leader, reported record Q2 revenue and strong financials, attracting optimism from analysts. The resurgence in the mining sector also extended to Mkango Resources, which gained 90% due to investor enthusiasm around its exploration prospects. Moreover, the finance sector has shown interest in the sector, with gold prices remaining strong and precious metals royalties and streaming companies like OR Royalties benefiting from high margins. The business outlook for the Canadian mining sector in the second half of 2025 remains positive, given the sector's resilience and the potential for growth in various sub-industries.
