Fresnillo Buy Upgrade Amid Precious Metals Rally

13 days ago

Khloe Mele

"Yeah, a couple of positive things for Fresno this morning. So, first of all, it got upgraded to a buy rating by HSBC and it's also benefiting from a real big rally in gold and silver. So, silver hit the highest level in decades because a short squeeze in London boosted what was already a really massive rally this year. And then gold, which last week saw a little bit of a dip because of traders exiting their positions to lock in those profits, surged again to another record. And because Fresno operates both gold and silver mines, when there is a lot of investor enthusiasm around those precious metals, it's always really reflected in the shares."

The speaker highlights the recent upgrade of Fresnillo to a buy rating by HSBC, underpinned by a robust rally in gold and silver. The commentary notes that silver has reached multi-decade highs due to a short squeeze, and gold is recovering from a minor dip, benefiting the mining company which operates both metals. The strong performance, evidenced by shares up over 300% year-to-date, is attributed to safe-haven inflows amid geopolitical tensions.