Economic Backdrop
The precious metals miners took a beating when COVID first reared its ugly head in the US in March. News of mine closures and restrictive measures throughout the mining supply chain, not to mention a disastrous fall in travel, had adversely affected mining operations. Falling asset prices, which had also spread into the precious metals sector, did not help margins for the miners that could still operate in the constrained economy.
However, the rising precious metals prices since March have buoyed the mining sector, which have begun to see sharp upward ticks across