PDAC due for investor surge as mining ‘has its moment’

A buoyant BMO metals conference this week marked by rising prices, disciplined miners and renewed deal talk is setting the stage for the world’s largest mining convention starting Sunday in Toronto.

Investor interest in mining is broadening, with generalist funds returning to the sector amid strong margins and demand tied to artificial intelligence, electrification and infrastructure buildout, BMO said in a wrap-up of its gathering near Miami. The conference drew about 1,500 attendees and more than 300 companies, with record participation from investors.

“Mining is finally having its moment,” the bank said, citing a surge in meetings. “Despite being a few years into this current margin expansion cycle, there’s little evidence of capex exuberance.”

The upbeat tone is expected to carry into the Prospectors and Developers Association of Canada conference, slated to be the largest in its 94-year history, with about 1,300 exhibitors and 100 hours of programming, PDAC President Karen Rees said. The annual event to March 4 typically draws 30,000 people and preliminary events are already underway.

Mining momentum

The convergence of strong prices, disciplined capital allocation and rising investor interest is setting up PDAC as a key test of whether the sector can convert momentum into sustained capital inflows, new partnerships and a fresh wave of mergers and acquisitions.

Geopolitics is also reshaping the backdrop as the United States and Europe increase efforts to secure critical mineral supply chains. Even after the U.S. Supreme Court ruling, tariff tensions that dominated last year’s discussions have faded into the background, BMO said. The focus is now more on funding, permitting and strategic partnerships.

The themes emerged from BMO’s 35th Global Metals, Mining and Critical Minerals Conference, where investors signalled growing appetite for deals, with production growth and reserve replacement driving conversations across the sector.

Recent transactions such as Anglo American’s (LSE: AAL) takeover approach of Teck Resources (TSX: TECK.B; NYSE: TECK) highlight a market repositioning towards scale and portfolio optimization.

Copper, gold favoured

Despite gold trading above $5,000 per oz., miners are emphasizing balance sheets, dividends and lower-risk brownfield expansions over large greenfield builds. Barrick Mining (TSX: ABX; NYSE: B) and Agnico Eagle Mines (TSX, NYSE: AEM) have both pointed to disciplined capital allocation and incremental expansions rather than major new builds.

Copper and gold remain the preferred commodities for investors, supported by electrification and safe-haven demand, while uranium, coal and lithium are also attracting interest. Companies such as Cameco (TSX: CCO; NYSE: CCJ) in uranium and Freeport-McMoRan (NYSE: FCX) in copper continue to draw attention as supply constraints meet rising demand.

AI has emerged as a new demand driver, with data centre growth and power infrastructure expected to lift demand for copper and other metals, drawing new generalist investors into the sector.

The Toronto convention will also reflect growing retail participation in metals markets and the rise of the HALO trade, shorthand for a focus on hard assets with low obsolescence risk. Copper, gold and other essential commodities are seen as durable stores of value in an era of rapid technological change.

Policy, capital

Government policy is also climbing the agenda. U.S. officials at the BMO event signalled continued support for mining projects through financing tools aimed at crowding in private capital, particularly for critical minerals.

In Canada, PDAC is pressing for greater policy certainty and longer-term tax incentives to sustain exploration investment.

“We’re very encouraged by the investment flowing into Canada’s mineral sector,” Rees said in an interview. “But we want to continue to attract investment at current levels, and that depends on policy certainty, fiscal competitiveness, and long-term investor confidence.”

The industry wants Ottawa to deepen support through more durable policy tools, including making the mineral exploration tax credit permanent, creating a critical minerals sovereign wealth fund to take equity stakes and support offtake price floors, and accelerating approvals through the new Major Projects Office.

Companies are also looking for clearer signals on which projects will be designated nationally significant, faster movement of advanced assets towards construction, and new infrastructure spending to unlock remote deposits, including in the North.