Here are some insights from an article on Globe & Mail. You can read it here:
Mr. O’Rourke, a 47-year veteran of mining, insists long-term demand for copper is strong and other commodities is strong. Copper Mountain is the first major mine to open in B.C. since 1998 and is the third-largest copper mine in Canada. It was opened to capitalize on higher prices and was greenlighted on a feasibility study that rested on $1.80 a pound copper.
The price per pound fell on Thursday to about $3.50, from $3.75 on Wednesday, and an average of $4.20 in August, an extremely lofty level for copper. Mr. O’Rourke said his company would still make money at $2.50.
He also noted prices remain high. Copper is higher than it was a year ago and precious metals remain lofty, though off their peaks. “Gold is still $1,730 an ounce,” said Mr. O’Rourke. “Silver’s $36. I mean, those are unbelievable prices for miners.”
Yes Mr O'Rourke...prices are high! They are unbelievable prices! So unbelievable that they are about to fall.
As an investor I look for downside risk protection and those comments above are some huge red flags.