Rise in metals prices likely to bring on more production

[MongiIG]

Mining companies may be seeing the biggest ever rise in metals’ prices, but John Meyer, mining analyst at SP Angel, says the same companies are also experiencing higher input costs.

 

A rise in energy is one of the biggest headwinds for the industry, but ongoing parts for machinery and labour costs are also going to eat into some if not all the benefits from the higher prices of the minerals they are mining.

At the same time, that rise in metals prices will also bring on more mines which should have the effect of bringing the prices for some metals down. The only issue there is that it can take years to bring on that new production.