Mining Stock Daily An Engineer's Take on Hot Metal Markets and Mining Investment Strategy
Sep 29, 2025
Neil Ringdahl, a mining engineer and market commentator, shares his insights on current metal markets. He dissects the recent $1B sale of the Hemlo gold mine and assesses its valuation. Neil explains how soaring metal prices affect mining operations, often raising costs along with profits. He also highlights the tight copper market and the impact of the Grasberg mine disaster on supply. Neil reveals his preference for established, cash-flowing mining companies over speculative ventures, emphasizing long-term investment strategies.
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Billion-Dollar Hemlo Valuation Is Plausible
- The Hemlo sale at about $1B can be justified based on projected production and existing reserves.
- Neil believes the valuation is realistic if gold stays elevated and the new operators execute effectively.
Don't Buy At Peak Gold Without A Strong Thesis
- Avoid buying mines when gold is at peak prices unless you expect much higher long-term gold.
- Prefer deals that remain sensible at moderately lower gold prices to reduce downside risk.
Higher Prices Often Inflate Mining Costs
- Rising metal prices often push up wages, royalties and supplier costs, eroding margin gains.
- Engineers see long-term views while stakeholders pressure for short-term payouts and projects.