Several mining stocks have been on an absolute tear over the past year, significantly outpacing broader equity markets. This outsized performance stems from multiple macro factors, which include:
- Persistent inflation and heightened geopolitical tensions have driven investors toward precious metals as protective hedges.
- Ongoing conflicts, including the Russia-Ukraine war, Israel-Hamas hostilities, and the trade war, have amplified uncertainty across global markets.
- Additional instability from cyber warfare, which has targeted critical infrastructure, has reinforced demand for safe-haven assets.
- Supply-side constraints have supported the valuations of mining stocks driven by environmental restrictions on new mine development.
- Industrial applications in consumer electronics and renewable energy infrastructure have fueled consumption growth.
- Technological improvements are boosting mining profitability as automation, artificial…
