Fresnillo Share Discussion Threads

[wallywoo] 04/1/2021 07:36

Fres certainly has been a great trading share over the last 12 months. However, for now the market is ignoring the fact that silver price has risen over 50 percent in 12 months (where the gold price is around 25 percent). This has also been boosted by a Mexican peso drop for 8 months, though it is back up now and of course a low oil price.


Once that filters down to the bottom line, the share price will move quickly on to £15+ IMO. I know Fres have had a production problem or two, but compared to most miners have fared the covid crisis well. With the vaccine and the metal prices it will fly soon.


I won't be selling now until that level is reached. January is often the best month for gold and silver prices, so that level could come very quickly IMO. Gold and silver up strongly this morning too!!

[imastu pidgitaswell] 03/1/2021 20:49

Yes, I (currently) have a lot more money in POLY than FRES (although both are significant), but the volumes I hold on both changes all the time. POLY's visibility on production, income, capital commitment and dividend is notably better, and I prefer that to another dodgy production RNS from FRES - at current prices.

But everything has its price, and for me there is an appropriate volume at each price - more shares at lower prices, fewer shares at higher prices etc. And just trade them ad nauseam. Same with POLY. Some people prefer to hold for price targets - there is more than one way to make money, which is what this lark is about.

As regards gains from PM prices outweighing dips in production, well, that's what gives a (quantified) increase in revenue, as noted. Nothing is ever totally binary and the question whenever 'higher' or 'lower' is mentioned should be 'how much'.

Imho only, of course.

[zicopele] 03/1/2021 19:27

Lads...fres is a trading share. I am in now but would exit at £12.....unless.

Unless Ag jumps heavily and I might stay until £13.

Of course if Ag jumps to $40 per ounce, I would stay until £15...maybe more.

As for disappointing...that is any announcement that might cause the share price to fall. I will know it when I see it and Fres has a propensity to announce nasty RNS at the most inconvenient times.

I love the poly dividend.

[lovewinshatelosses] 03/1/2021 18:34

Thanks for your thoughts trader. I certainly cannot see PM prices dropping in the next six months at the very least. Can't see PM being a bad investment for a much longer timeframe than that either to be honest!

[trader536] 03/1/2021 17:48

The gains from higher PM prices will far outweigh losses from dips in production.

[lovewinshatelosses] 02/1/2021 12:07

It was the geographical issue that made me plump for FRES over them a couple of years ago.
Consequently, not only have I only recently gone into profit here, after multiple averaging downs from the lows, but I also missed out on a three bagger had I chosen POLY then instead and done nothing else! As a friend pointed out to me, it's not as though Mexico is a completely politically stable nation either. Maybe keeping both, but tweaking my current weighting, is the way to go.

[zicopele] 01/1/2021 23:17

Poly a better bet I think. Look at that juicy dividend and forecast to increase by up to 65% this year.

Only problem Poly is in Russia. Actually, it is a big problem. Not sure if Mexico is much better.

I have both, just in case.

[lovewinshatelosses] 31/12/2020 20:52

My only worry is whether they will issue yet another disappointing update due to production problems, as they so often seem to since I've been invested here! I remain very bullish on PM prices for the same reasons as others here have stated. I am pondering whether to transfer over to POLY from here because of this fear - but if they do meet projections, I agree we should rerate positively from here. It's a tricky one! I have a small amount of POLY in a side account already, but a lot more FRES.

[plunger2] 31/12/2020 17:22

Patience is very difficult in markets like these where growth stocks are all the rage and the lack of them pushes demand to extraordinary levels and sends prices to the moon (probably in a Tesla rocket :) )
That said most of us here are feeling the increasing disconnect between current PM prices and current prices of PM shares like FRES. This disconnect leads to many ST investors throwing in the towel very quickly as their eyes are drawn to fast moving opportunities elsewhere. That's okay - each to his own. But if PM prices stay elevated (and with truckloads of state debt everywhere how can they not?)it is only a matter of time before PM share prices catch up.

Every time there is a large bubble in any asset price the first naysayers are shot down, the second naysayers can go broke, the third naysayers are so isolated that they are dismissed as lunatics and retire to their caves to be hermits!
And when that all has happened then KER-POW the bubble bursts.
And that's when everything is up for grabs and FRES and co could go up a lot or even go ballistic.
I will not be panicking.

JMHO

[roguetreader] 31/12/2020 16:11

If silver stays anywhere near $26 or above then, FRES should really start to move in early 2021. Subject to no nasty surprises in the next update.

[imastu pidgitaswell] 31/12/2020 13:54

free stock charts from uk.advfn.com



Vrooom...

🙄

[permbear] 31/12/2020 08:11

USD doesn't continue to weaken? Erm, EUR/USD hit 1.23 yesterday and Cable heading towards 1.37. All of the textbook tailwinds for a stronger PM price surge are present but the facts cannot be disputed: it is just not happening and gold is actually down over the last 6 months.

If a Democrat victory in Georgia still doesn't do it then we'll definitely be just like the two guys in 'Waiting for Godot'. Even if we're right on paper about where PM prices should be heading, it's futile trying to fight the Fed and JPM who are clearly suppressing it. Gold should have rocketed after Trump signed the latest stimulus deal, instead it briefly touched 1906 and then sank back to circa 1870.

[rarther] 30/12/2020 21:11

Gold creeping backwards in GBP terms and money flowing to more exciting markets perhaps? All the LSE midcap miners seem to be in a similar boat.MAG silver is up 25% this month but here we are owning more than half of it and trading flat all month.Hopefully results in march will force this tide to rise.

[zicopele] 30/12/2020 19:19

How did Fres fall today? Silver strong and miners in USA all good.

[plat hunter] 27/12/2020 14:32

US Dollar index has been getting battered

[zicopele] 24/12/2020 12:19

Except...the USD does not really continue to weaken. Hopefully, a brexit deal can lead to some good gains.

Not too long ago I thought we were going to break through 1400. Then came the vaccine and the price has been weakish since.

[ashwani01] 22/12/2020 16:55

Bought a few at 1137.63 to add to existing pile. Am expecting a decent rise from here. Let's see.

[permbear] 22/12/2020 07:05

Another U.S stimulus package approved, money printer going brrr again, USD continues to weaken and a new mutant COVID strain spreading around the world means PM prices must be going parabolic right? Oh no that's not part of the script...As of this minute, gold has lost $38 in the last 24 hours.

[topazfrenzy] 21/12/2020 13:49

bought back in with a few @ 1131p would have been rude not to lol

[2603] 21/12/2020 12:50

With silver on the verge of braking to the upside, massive rise in Asia, sell off in Europe probably due to margin calls on general sell off and nervousness. Silver is really showing some very good strength getting bought back on dips and out performing gold, this is great news for fres going forward. Fres joint venture with Mag silver, does anyone have any up to date news on this and what the potential there is over the next couple of years? Much appreciated

[trader536] 21/12/2020 10:14

The buying opportunity was anywhere below 700p

[rarther] 21/12/2020 10:05

I would be short if i could decide silver would be $25 tomorrow for me to cover the short and pocket the difference. Then i would go long until the market spikes again then short the hell out of it again. Free money if you can control the racket see everyone's cards.Supply and demand is forcing it up in long term though. If you don't control the house then pullbacks are your buying opportunities.

[diggybee] 21/12/2020 09:50

I certainly would not want to be short.