Fresnillo Share Discussion Threads

[hussyo] 29/10/2018 20:27

It's important to follow, because if the SP500 continues to fall, then at a certain level - 2250, 2300, 2510, are all being debated - the call for the Fed to go doveish will be too strong to ignore. Precious metals will not be able to rally into the headwind of a hawkish Fed.

[hamhamham1] 29/10/2018 20:08

Although I shouldn't really bother to follow it so granular.

[eeza] 29/10/2018 19:21

Together with FTSE futures.

[hamhamham1] 29/10/2018 19:17

Dow falling quite quick.

[imastu pidgitaswell] 29/10/2018 14:22

Mmmm. There was a massive divergence with the FTSE from June, having had a reasonable correlation for a time - some significant movement lately, but as they now seem to move in opposite directions for the time being, not sure where it goes next. Probably means nothing...



free stock charts from uk.advfn.com

[hamhamham1] 29/10/2018 13:48

Huss. Yep it only can be good for FRES with Randgold delisting.
If you want to invest in a FTSE100 which covers precious metals then your options will be limited and hopefully it should induce extra investment in FRES.
Re. Current global markets situation. Any market where shares whipsaw up and down by 5 or 10% in a couple of days is getting a bit schizophrenic of you ask me.
After 10 years of not losing by going long then when people sell up a bit they feel the need to keep jumping back in regards of the signs as its worked so well before.
Interesting to see China's Shanghai Index down again today by another 2% but Europe has ignored that and fears missing a rise. All aboard.
To me there are more and more warning signs popping up, time will tell.

[hussyo] 29/10/2018 13:35

Thanks Ham... It will be curious to see what impact the de-listing of Rand will have on Fres.. There are differences between the two, of course, but the narrowing of London options for exposure to precious metals can only be positive.

[hamhamham1] 29/10/2018 13:16

Goldman Sachs have reiterated their "Conviction Buy" rating for FRES with a slightly lowered new target price of 1475p.
I'll take that as an initial target :)

[eriktherock] 29/10/2018 13:15

885 will do. That's me fully loaded. Long may we all prosper.

[hussyo] 26/10/2018 16:11

Tonight's cftc gold report will be interesting... if last week's spike is followed through then it will indicate that sentiment on rates is changing.

[hamhamham1] 26/10/2018 16:08

Huss. FRES will whip upwards me thinks.
And with gold heading north, interest in silver will mount and reduce the gold/silver ratio.
Let's watch and see over the coming months.

Oops, I will pretend I didn't post that, I said I was off from posting for the rest of the day!

[hussyo] 26/10/2018 16:06

Consensus is for Dec hike followed by at least 3 next year. I don't see it

[hussyo] 26/10/2018 16:05

This is Fres's moment but it's flopping

[ukgeorge] 26/10/2018 16:02

Gold breaking out £10 next week :)

[edmondj] 26/10/2018 14:25

"In terms of the commodities, we see gold (and sliver) as oversold and see potential for a tactical bounce and possibly even a secular turning point as the rates cycle in the US come into question."

Are Fed hikes really in question?

hxxps://www.washingtonexaminer.com/policy/economy/fed-vice-chair-says-interest-rates-should-continue-to-rise



Merrill seems to acknowledge the interest rate influence on PMs, if a tad hopeful, to make an all-round bullish case.

Still, thanks for posting that, ham!

[ashwani01] 26/10/2018 14:09

Iweb. Reasonable prices. Easy to use.

[eriktherock] 26/10/2018 13:53

Support around 884 but below 880 to hit the stops.

[hamhamham1] 26/10/2018 13:48

Ok, very, very last :)
I missed this upgrade on Monday from Merrill Lynch to a 'Buy' with a target of 1150p....

Fresnillo may become the go-to precious metals miner after Randgold Resources delists, says Merrill Lynch.

Merrill Lynch upgraded Fresnillo to a ‘buy’ recommendation and set a target price of 1,150p.

Fresnillo PLC (LON:FRES) could become the go-to, high-quality liquid precious metals stock in London once Randgold Resources Ltd (LON:RRS) delists as part of its merger with Canada’s Barrick Gold, according to Bank of America Merrill Lynch.

Barrick has agreed to buy Randgold in an all-stock deal valuing the African-focused miner at US$6.5bn and creating the world’s largest gold producer. The new Barrick company will be listed in New York and Toronto.

Merrill Lynch upgraded Fresnillo to a ‘buy’ recommendation and set a target price of 1,150p as it believes the miner could assume the mantle in Randgold’s place.

"Fresnillo has a track record of value creation by delivering growth from small, often brownfield, high-return projects," the investment bank said.

"In terms of the commodities, we see gold (and sliver) as oversold and see potential for a tactical bounce and possibly even a secular turning point as the rates cycle in the US come into question."

Merrill Lynch said Fresnillo is large with a market capitalisation of US$8.5bn, is liquid and is one of the highest quality precious metal producers in its coverage.

"Fresnillo has been a great growth story and has delivered almost unrivalled growth since its IPO in 2008, paying out dividends of US$2.4bn along the way."

Growth has been driven by high-value-add projects in Mexico. Fresnillo favours smaller projects, often brownfield or near mine with high net present value and returns, Merrill noted.

"Political uncertainty in Mexico with a new presidential regime still exists but appears to be grinding forward without any dramatic surprises," Merrill Lynch said.

In afternoon trading, shares rose 1.6% to 901.8p.

investors.co.uk/companies/news/207589/fresnillo-may-become-go-to-precious-metals-miner-after-randgold-resources-delists-says-merrill-lynch-207589.html

(remove the space between proactive and investors in url to see the link)

[ken tennis] 26/10/2018 13:47

HAM You have a good weekend as well, I got the grandchildren round this weekend so no peace for me haha I love em though.

ATB Ken

[hamhamham1] 26/10/2018 13:15

Another reiterate from RBC today as their 'Tip Pick' at 1300p.




Last post from me today, you'll be glad to see, have a good weekend all.

[hamhamham1] 26/10/2018 13:02

Let's see what happens after 2:30pm.
I think Barrick will go up > Rangold will go up > Fres will go up.
Let's see, if not, well at least it's the weekend :)

[hamhamham1] 26/10/2018 11:42

If JP Morgan have been accumulating physical silver, their average buy price over the past 5 years must be around $18 per oz???
And if one things for sure, JPM are no fools ;)

[hamhamham1] 26/10/2018 11:26

Gold and silver are precious metals and a safe haven play.
But with the current gold silver prices, FRES actually gets more income from their gold than their silver, even though they are the largest silver miner in the world.
I don't think the traders have really cottoned onto this fact.
Rangold up plenty as they are a pure gold play, I really think the traders are missing a trick in my view especially with the gold/silver ratio at around 85x, well above the usual average ratio.

[ukgeorge] 26/10/2018 11:20

dollar index , basket of currencies against the dollar