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Something quite extraordinary is happening in the gold and silver market. Gold prices don’t move by a $1,000 in just over a year, for no reason. Rather than pay expensive storage fees for buying the physical stuff, I am much more interested in the metal in the ground. As a miner of both gold and silver, this FTSE 100 stock remains one of my favourites.
Cash cow
Surging gold prices have been a tonic for the Fresnillo (LSE:FRES) share price. Up over 100% in a year, I think the bull run is just getting going.
Considering its small market cap, the amount of cash flow that the company is generating dwarfs the Magnificent 7 stocks, including the mighty Nvidia.
The key to its growing cash pile is not all down to metal prices. In 2024, efficiencies resulted in cost savings of $40m.
All-in sustaining cost (AISC), a key measure in the mining industry, has been moving in the right…
