Jefferies has identified several mining companies it views as positioned to withstand the current bout of market turbulence, saying commodity markets look likely to remain resilient even as geopolitical tensions and risk-off sentiment pressure equities.
The investment bank's analysis comes after a week in which mining stocks were sold off in line with broader equity declines and investor concerns about a possible economic slowdown. Jefferies argues that, on a fundamental basis, the sector could remain constructive provided oil price spikes do not materially impair global growth.
Glencore
Jefferies notes that commodity prices should hold up and that mining equities can act as somewhat defensive assets while the conflict-related risks persist, again subject to the caveat about oil-driven economic stress. The company recently ended merger talks with Rio Tinto. In addition, Glencore is reportedly close to a transaction to divest its 70% stake in Kazzinc, the Kazakhstan-based zinc and gold producer.
Alcoa
Despite what Jefferies characterizes as positive fundamentals across the metals complex, Alcoa was among the mining names hit in the recent selloff amid a general risk-off move in equities. The firm that provided the note observed that the rally in metals and mining shares over the prior six months may have reflected heightened geopolitical risk, a structurally weakening U.S. dollar and the risk of inflation. Alcoa has disclosed plans to sell multiple closed or curtailed sites to the data center industry. After a period of relative outperformance, Morgan Stanley moved its rating on the company to Equalweight from Overweight.
Peabody Energy
Jefferies highlights the role that the growing use of artificial intelligence in mining could play across the sector. The firm says broader AI adoption has the potential to lift productivity, reduce dependence on fossil fuels and other consumables, lower environmental footprints, improve safety outcomes, and boost profitability and returns. Peabody reported fourth-quarter 2025 results that beat analyst expectations, delivering revenue of $1.02 billion and earnings per share of $0.08.
Core Natural Resources
Jefferies also points to Core Natural Resources, saying the company should be well positioned in the event that fears around the conflict lead to an economic downturn.
This analysis emphasizes two central constraints on Jefferies' constructive view: first, that commodity prices remain supported by geopolitical and inflation-related factors; and second, that a significant oil price shock that meaningfully weakens global economic activity would undermine the defensive qualities the bank assigns to these miners.