The David Lin Report · Thursday, July 16, 2026
Brent Cook notes that major mining companies' price-to-NAV multiples have fallen from 1.6x last year to 0.7x, suggesting they are more attractive M&A targets. However, he observes that historically, M&A activity tends to increase when valuations are already stretched.
“But consider the price to NAV last year was about 1.6x for mining companies, the major mining companies. And now it's down to about 0.7.”
“So, you know, prices have gotten better. Are our companies now an more attractive M&A target now than, uh, when they were stocks were 35% or higher?”
“Historically, that's been the case in the mining sector. You see it all the time that, uh, you know, mining companies go and spend a lot of money on buying a company right near the top.”