The big play on precious metals mining stocks is that production costs remain (much) smaller than the metal's spot price

For gold - the cost to produce/mine 1 oz is roughly $2000. Then, those same miners sell it for more than $4000. Instant >$2000 profit per ounce (again, rough numbers) 😄

So from the current levels, assuming production costs increase less than the spot price of the metal - miners win big. I believe this will be the case.

I wrote a more detailed article explains gold mining costs and miner profits here: https://illya.sh/threads/1-oz-of-gold-production-cost-and-miner-profit