The UK stock market has made an impressive comeback over the past month, with many industries enjoying renewed investor interest. This has been prompted by improving economic sentiment, falling inflation expectations, and hopes for interest rate cuts in the second half of 2025.
One sector in particular is the UK mining industry, which appears to be entering a fresh phase of growth.
After years of volatility, demand for key industrial metals seems to be rising again. This is likely due to increased infrastructure investment, the global energy transition, and resilient Chinese consumption. This renewed appetite for raw materials has sparked gains across mining shares, from blue chips to mid-caps.
Investors keen to capitalise on this trend may want to consider two mid-cap FTSE 250 mining companies that are helping fuel the resurgence: Ferrexpo (LSE: FXPO) and Atalaya Mining (LSE: ATYM).
An undervalued miner with strong fundamentals
Ferrexpo has delivered a 15.6% gain over the past month, more than any other major miner in the UK. With a market capitalisation of £391.2m, the iron ore pellet producer remains modestly sized, yet its valuation appears attractive. Its price-to-sales (P/S) ratio of just 0.53 suggests the stock is trading well below what investors are willing to pay for similar stocks.
Currently, it’s unprofitable, with an earnings per share (EPS) of -7p. Yet the company’s balance sheet remains a solid indication of promising performance. It holds £737m in equity, £84.5m in cash, and only £4m in debt — a remarkably low gearing level for a resource firm. This financial position provides it with the flexibility to weather commodity price fluctuations and potentially return to profitability should market conditions continue to improve.
As is common in mining, geopolitical risks are a key concern. Ferrexpo operates in Ukraine, and while recent operations have continued, the ongoing conflict in the region poses a persistent threat. Still, for risk-tolerant investors, the current share price could hold significant growth potential if iron ore prices remain firm.
Copping a copper comeback
Atalaya Mining is another FTSE 250 miner gaining traction, having seen its share price rise 14.6% in the past month. With a market cap of £585.5m, the Spanish-based copper producer is benefiting from renewed optimism around copper demand, particularly due to its role in electric vehicles and renewable energy infrastructure.
Atalaya has a moderate price-to-earnings (P/E) ratio of 22.71 — reasonable given its growth potential. Its balance sheet is also in good shape, with £428.7m in equity, £43.7m in cash, and just £17.8m in debt, allowing it to fund development projects and navigate market volatility.
While its valuation reflects some optimism, copper prices are notoriously cyclical and could be derailed by a global slowdown. Nonetheless, Atalaya appears well-positioned to benefit from the current demand and has strong operational leverage if prices rise further.
A growth driver in 2025?
The FTSE 250 is not the only index benefiting from this trend. A similar situation is mirrored in the FTSE 100, where larger miners like Antofagasta and Anglo American have also rallied over 10% in the past month. The broader mining sector is once again asserting itself as a pillar of UK market performance.
With global industrial demand picking up and investor sentiment shifting, mining could play a vital role in driving UK economic and stock market growth in 2025 and beyond.
