Late comers are landing, they’ll help get us to 1500p for March results |
🚀 Fresnillo #FRES shines as Citi’s top EMEA gold pick! 🎯 Target price raised to 1,000p as strong Q4 gold production (+30%) & soaring cash flow yield (12%) bolster the investment case. With gold eyeing $2,950/oz, Citi sees big upside! ✨
Plus actionable TA |
Citi names Fresnillo as top gold mining pick
JPMorgan has raised its target price for precious metals miner Fresnillo from 900p to 1,000p and named the stock its top pick among the EMEA-listed gold mining sector.
The bank, which is 'overweight' on the EMEA gold mining sector as a whole, said Fresnillo was its preference given it is trading on a 3.5x enterprise value-to-EBITDA ratio at a 12% free cash flow yield.
"We expect management guidance on opex inflation at FY24 results (4 March) to further de-risk 2025/26E earnings forecasts," JPM said. |
Up even more in late afternoon, with FRES uncrossing at the days high (?) and arguably completing the cup and handle.
Silver marginally up to another 3-month high of MXN673 but gold still more records of MXN59,625 / $2883 / £2304 / Euro 2766. |
Gold at new highs yet again - £2301 / $2878 / Euro 2763, and especially MXN59,505.
Silver only up in MXN this afternoon, at 672, but that's the one that FRES cashflow likes.
FRES continues to outperform silver in MXN since November, after serious underperformance since early 2023.
free stock charts from uk.advfn.com |
The trend really is your friend |
Gold and silver flying . Don’t forget 50% of turnover is gold and this is well ahead of silver atm . |
Do I need to say that PMs are flying in local currency again?
Silver MXN668 and gold MXN59157. Silver is only about 4% off its ATH now, but it was only above the current price for about 2 weeks back then. The current rise feels more sustained - but who knows? MXN gold keeps smashing records out of the ball park. One wonders why FRES shares not going for records. The market must think current PM prices are not sustainable - but it's been acting like that for months as PMs have kept rising.
Dec 28 contract closed at $37.20 so also getting close to taking out 3-month highs, suggesting something a bit more sustained than just a Trump spike. |
A cup and handle target traditionally is the same height of the handle again in a similar timeframe - adding a second handle. That would take the shares quickly to around 900p before consolidating over another 15 weeks
I don't particularly subscribe to this,though. I just draw the channels. A cup and handle is a channel change pattern from bear to bull, like an inverse head and shoulders or a double bottom. The key to targets is the width and channel direction that bounders the patterns and it's angle of fall or rise. At the moment, it's clearly trying to break out of a very long down channel (by just staying over around 712p today), backed by boooming PMs/fundamentals, but a bull channel that it might be breaking out in is only roughly apparent to me as yet.
free stock charts from uk.advfn.com |
Well I have joined you this am. Like the chart, loving the projected profit/cashflow̷0; All on the likelihood of a silver breakout…
Not my usual buy and watch it drop…. So far! |
Is this the start of the re-rate |
I never understand this share ... the results are predicted to be sensational and the share price rises a little .. why will they do with all the profit ... why don't they reward shareholders IMHO |
I meant in relation to the cup and handle formation ... however, point well made. |
Timbo_Slice
i refer you to Trader465 if i may :)
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trader465 - 09 Jan 2025 - 11:45:36 - 21367 of 21468 FRESNILLO precious metals - FRES
Its not, try hitting the refresh button
When you see £20 on the screen its time to sell half and let the rest run to £50
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1170 target - is that what you are looking at? |
And off we go again. $2842 is a another ATH for gold. Silver a perky $32.26.
Gold will also be a new closing ATH in MXN and silver a 3-month MXN closing high if they just hold onto this afternoon's gains. |
I missed gold's new high of $2838 overnight and it's picking up again a bit now, at $2834. Silver creeping back over $32. Dec 2028 contract still near 3-month highs at $36.67.
Looking more like a 20-month cup and handle each day ... |
MXN gold and silver down are about 1.5-2% off Trump-inspired highs but both remain comfortably above their rising 50-day averages. |
US tariffs on Mexico suspended for one month for negotiations after Mexico agree to send troops to border (to deal with illegal immigration and fentanyl shipments?).
Most of today's silver and gold gains given up and new closing highs looking much less likely, except for USD where a close over $2800 for gold still looks probable. |
I can't keep up with the new ATHs in gold .... er, $2829 for now.
Silver not going up more but holding strong at levels that look set to see a close at new 3-month highs?
Does Trump not realise that reducing US trade will reduce demand for $s as global forex holdings? Anybody can strengthen the nominal GDP growth by collapsing the currency. Go ask Turkey or Zimbabwe. It's no wonder PMs are going up. US investors will be flee cash with his inflationary policies unless the Fed turns around and starts banging rates up again - but Trump will start arguing with them if they do that.
$2833 / £2294 |
No tariffs on PM’S ? American people will get pretty fed up very quickly when they see their shop prices rising out of control . It’s all bluster as usual from Trump . |
It is possible but the majority holding in Penoles hands would ensure they dictate the price .. and they’d want at least double the current share price . I doubt they would sell the biggest silver producer in the world ! |
Any thoughts on implications of tariffs on Mexico and specifically on Fres? |
Gold up over 2% to MXN59,167, after a new ATH of MXN59,404 earlier. Also ATHs of £2289 / Euro2751 / US$2823 earlier.
Margin increases here should Trump any volume losses. We have not even absorbed previous margin increases yet. Shares should be up on today's news and continue to rise as previous news sinks in. I imagine they should rise into results when we will get a clearer picture. |
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