Posts  / #POST-244605
REDDIT

Mining/mineral companies

I
Aug 3, 2026 · 20:00

companies that have mining rights, have a natural moat and should be pretty stable in the long term. As long as the commodity they mine stays similar to inflation it should have stable earnings. However the pe ratio of such mining companies tend to be relatively lower than the sp500 (pe ratios of \~15). Why is there a better price for these theoretically lower risk companies? Is there a hidden risk I’m not considering?