This Undervalued TSX Stock Is Down 44% – and Worth Holding for the Long Term

Investing in the stock market feels like a roller coaster in 2026, especially as escalating geopolitical tensions and macroeconomic uncertainties are continuing to keep investors on edge, with stocks experiencing heightened volatility. But experienced investors know that short-term pullbacks could also create attractive long-term opportunities. When a fundamentally strong business trades well below its highs, it’s usually worth considering. In this article, I’ll break down one such TSX stock and explain why it could still be a solid long-term hold despite short-term headwinds.

Ivanhoe Mines stock

Ivanhoe Mines (TSX:IVN) has had a challenging year, with its stock down about 44% from its 52-week high. As a result, it now trades at $11.50 per share with a market cap of $16.4 billion.

However, that doesn’t mean its operations are deteriorating. In fact, the company reported strong results for 2025, with profit after tax rising to US$228 million from US$193 million in 2024. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached US$578 million, reflecting solid operational strength.

Ivanhoe’s Kamoa-Kakula Copper Complex remained the key contributor, generating revenue of US$3.3 billion and EBITDA of US$1.5 billion in 2025. This came despite lower production and sales since May. Its cash cost (C1) for payable copper stood at US$2.16 per pound, in line with its revised guidance. Meanwhile, the company’s Kipushi project added US$441 million in revenue and US$91 million in EBITDA (earnings before interest, taxes, depreciation, and amortization), with a margin of 21%.

Strength in financial growth trends

Ivanhoe Mines continues to build on its strong asset base. The Kamoa-Kakula complex produced 388,841 tonnes of copper concentrate in 2025, with the Phase 3 concentrator delivering a record 144,489 tonnes at more than 30% above design capacity. The on-site smelter, which is Africa’s largest and most advanced copper smelter, is ramping up faster than expected and is already operating at over 60% feed rate.

The company’s capital expenditure for 2025 came in at US$1.2 billion, below its revised guidance. Looking ahead, Ivanhoe expects its cash cost to improve further to between US$1.90 and US$2.30 per pound by 2027, driven by efficiency gains and higher production.

Focus on long-term growth initiatives

Ivanhoe Mines has several long-term growth drivers in place. Its Platreef project in South Africa is expected to deliver a 400% increase in production starting in the fourth quarter of 2027. This expansion alone could significantly boost the company’s output profile over time.

The company also maintains a strong balance sheet, with US$885 million in cash and short-term deposits as of December 2025. Its exploration budget is set to rise to approximately US$90 million in 2026, up from US$48 million in 2024, showing a clear commitment to future growth.

Why Ivanhoe Mines is a great long-term investment

Ivanhoe Mines stands out because of its high-quality assets and long-term growth visibility. Its focus on operational efficiency and expansion projects continues to strengthen its outlook. Even after a sharp stock decline, the business fundamentals remain intact.

The company also offers exposure to a wide range of critical minerals, including copper, zinc, nickel, palladium, platinum, and rhodium. This diversification helps reduce reliance on any single commodity and positions it well to benefit from rising global demand for these resources.

The post This Undervalued TSX Stock Is Down 44% – and Worth Holding for the Long Term appeared first on The Motley Fool Canada.

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More reading

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.