Rising commodity prices due to the supply chain disruptions and soaring demand bode well for mining companies. The surging global demand for metals and materials and rising prices amid the multi-decade high inflation should drive the mining industry’s growth.
Moreover, the industry should benefit from the rising infrastructure projects, automation of production processes, and sustainability goals. The global mining market is expected to grow at a CAGR of 12.9% to $3.36 trillion by 2026. Investors’ interest in mining stocks is evident from the SPDR S&P Metals and Mining ETF’s (XME) 15.5% gains over the past six months versus the SPDR S&P 500 Trust ETF’s (SPY) 19.7% loss.
