I have exactly the same feeling about the ASX engineering...

I have exactly the same feeling about the ASX engineering companies. I recently bought into Lycopodium based upon the same thesis. Someone has to build the new mines needed for the electrification / renewables metals; which will be needed in abundance over the next few years. Inflation, tightness in the labour market / competition for talent, and a limited, fixed number of companies able to provide this valuable service means prices will rise. Reliable companies with strong reputations will be able to charge more -- especially if they can save mining companies' money through smart and efficient project designs. The barriers to entry in mine construction are high and reputations, earned over years/decades matter.

I note the following recent comment from a contributor on the Lycopodium (LYL) page whom I respect highly. H/she has the same belief as you that mining construction companies are/will be doing very nicely this decade:



Hog Ranch is probaby at a similar stage to Caraval's (CVV) WA copper project. I might be way off and incorrect in saying that. I doubt RL would be so ambitious as to expect both Hog and Hillside will be seeking finance, and to be overseeing mine construction, simultaneously. It's certainly a nice problem to have. My guess is they will continue doing the type of drilling and exploration that does not drain too much money from our coffers. They'll steadily increase the proven reserves as much as possible without going overboard with expenditure, get it nicely packaged and tie a nice shiny ribbon around it, with great headline numbers, then sell it when the gold price is more favourable. If the gold price is over US$2,000 in a year or two, I imagine it will be sold. Its acquisition seemed opportunistic rather than strategic. RL had an opportunity to grab the site for a bargain which he had familiarity with from his WMC days. It was a smart move. But I doubt anyone has sentimental attachment to the project. From YouTube interviews I've watched with RL, Hillside is the main show.