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

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