Latest news with #Fresnillo
Daily Mail
3 days ago
- Business
- Daily Mail
Why gold mining shares are too cheap, according to JP Morgan analysts
After a strong run for precious metals, gold mining shares still look undervalued. That's the view from JP Morgan's latest note on listed producers, which argues there's room for substantial upside, especially if its bullish forecast for the precious metal proves right. Its commodities team is pencilling in a price of $4,100 an ounce for 2026. That's well above current spot levels of $3,320 and would mark a new all-time high. Based on that estimate, JP Morgan sees around 40–50 per cent upside to average analyst expectations for earnings before interest, tax, depreciation and amortisation across the sector. While the American bank focused on the larger producers, citing names such as Fresnillo and Hochschild, there's plenty of value lower down the evolutionary chain. Stocks on this layer of the pyramid are increasingly disconnected from the rising gold price, rather than moving in step. Of course, being small and mid-cap companies, it often takes time for the market to focus on inherent value, even when backed by gold. These smaller players are also more prone to operational mis-steps that larger organisations can absorb. Below is a far-from-scientific roll call of gold stocks that have thus far flown under the radar. Probably the pick of the bunch is Pan African Resources, which, with a £940 million market capitalisation, has broken free from the small-cap bracket. While its share price is up around 30 per cent year to date, it still lags the performance of Endeavour (+51 per cent) and Fresnillo (+80 per cent). Dropping down a division, Caledonia Mining stands out. Its performance has been stronger than Premier African and it comes with a very decent dividend. As valuations shrink, the link between the gold price and share price weakens. A case in point is Ariana Resources, which has modest production from its Turkish operations but ambitious growth plans in Zimbabwe. Panmure Liberum analysts, fresh from a site visit to Ariana's Dokwe project, described it as a potential multi-million-ounce asset with strong development prospects. That optimism is in stark contrast to Ariana's stock market performance, down more than 40 per cent year to date. It suggests value and opportunity may be buried in AIM's twilight zone. Ariana is preparing to list in Australia, a savvy move in a market where investors, both private and institutional, know how to value smaller gold companies. Appetite for diggers and prospectors is strong, supported by self-directed flows from Australia's generous superannuation schemes. So, watch this space. Wider market moves Turning to the wider market, the AIM All-Share continued to outperform its benchmark, rising 1.3 per cent to 746.39 and outpacing the FTSE 100, which nudged just 0.4 per cent higher. This reflects growing confidence, underlined by a slew of successful fundraisings that made May a bumper month for companies replenishing their coffers. The week's standout performer was Blue Star Capital, which jumped 150 per cent after news of its investment in cross-border crypto payments platform SatoshiPay. Avacta rose 43 per cent, a performance that would have topped the leaderboard most weeks. The appointment of two heavyweight independent directors helped ease investor concerns over a delay to the company's results. One of the new recruits, Richard Hughes, brings deep capital markets experience, possibly signalling a strategic shift for the precision medicines group. ATOME climbed 35 per cent following the launch of a new renewable energy division, initially focused on Latin America. And the laggards… At the other end of the table, Totally fell 84 per cent as investors digested the healthcare provider's semingly insurmountable funding position. Watkin Jones dropped 21 per cent after the developer of student housing and build-to-rent properties posted a loss and painted a gloomy picture of current trading. Finally, the small-cap market, especially where trading is thin or controlled by market makers, tends to react sharply to news, with professional price-setters often moving to protect positions rather than reflect true value. A case in point is hVIVO. Shares slumped 45 per cent on Friday following the loss of one contract and the postponement of another. Seasoned small-cap investors will know that sanity usually prevails, but it can take time for stocks like hVIVO to find their footing. In the meantime, it's worth remembering this is a business with £47million of contracted revenue already secured for the current year and, as of its last results, £44million in cash.
Daily Mail
6 days ago
- Business
- Daily Mail
Which 10 FTSE 100 shares have jumped most in the past six months?
A mining giant headquartered in Mexico City has been the FTSE 100's biggest riser over the past six months. Fresnillo shares have jumped 77 per cent amid a surge in gold prices, as President Trump's tariffs have led to considerable turmoil in global stock markets and driven investors to safe-haven assets. Gold prices smashed a record $3,500 per ounce on 22 April, a few weeks after Trump announced a 10 per cent baseline tax on all US goods imports, as well as 'reciprocal' tariffs of 25 per cent on dozens of countries. Prices have also been driven up by inflows into gold-backed exchange-traded funds and high demand from central banks since Russia's full-scale invasion of Ukraine. Silver prices have similarly been lifted by geopolitical turmoil, although not to the same extent as gold. The element increased in value by approximately 21 per cent last year, from $23.65 to $28.90 per ounce, thanks to strong industrial demand for use in green technologies such as solar panels and electric vehicles. Rising prices and moderately higher production output combined to help Fresnillo's turnover jump by 29.3 per cent to $3.5billion in 2024, and its pre-tax profits skyrocket more than sixfold to $743.9million. Another firm that has enjoyed a fruitful last six months is the little-known telecoms provider Airtel Africa, whose shares have soared by around 70 per cent. This is despite the group recently reporting that its revenues flatlined at just under $5billion in the year ending March. Its operating profits also declined by 11.1 per cent to less than $1.5billion. Some distance behind, at 57 per cent, is Rolls-Royce Holdings, which has enjoyed an exceptional turnaround under chief executive 'Turbo' Tufan Erginbilgic. Having severely struggled during the pandemic when airline travel virtually ground to a halt, the engine manufacturer slashed costs by cutting jobs and improving its supply chain. The measures coincided with a rebound in foreign travel boosting the amount of time its engines were in use and governments ramping up defence spending in response to Russia's full-scale invasion of Ukraine. Consequently, the company's market value has jumped about ninefold since the start of 2023, from £7.9billion to £71.5billion, and is on track to reach its 2027 profit targets two years ahead of schedule. BAE Systems has likewise benefited from growing military expenditure; shares in Europe's largest defence contractor have climbed by 47 per cent. Among the Footsie's other top ten performers over the last six months are Lloyds Banking Group (up 48 per cent) and NatWest Group (up 34 per cent). The latter exceeded first-quarter earnings forecasts, achieving an operating pre-tax profit of £1.81billion, compared to analyst estimates of £1.56billion. Ahead of NatWest are Coca-Cola Hellenic Bottling Company (up 40 per cent), whose shares traded at a record high on Tuesday, and motor insurer Admiral Group (up 36 per cent). Behind the firm in ninth and tenth place are Next (up 32 per cent), which has just become the fourth British retailer to score at least £1billion in annual pre-tax profits, and British Airways owner International Airlines Group (up 31 per cent). The FTSE 100 was up 0.8 per cent today to hit 8,785 - back to levels seen at the start of March. It is up 14.3 per cent since 9 April, when Trump's tariff shock sent global markets into freefall.
Yahoo
25-05-2025
- Business
- Yahoo
Are these the best UK stocks to consider buying right now?
Investors are constantly hunting for the best stocks to buy. And 2025 has so far proved to be a great year for some of Britain's largest businesses, such as Fresnillo (up 58%) and Airtel Africa (up 52%). Sadly, not every company in the FTSE 100 has been so fortunate. And three of the weakest performers include: WPP (LSE:WPP) – down 28% Glencore – down 27% Ashtead Group – down 13% While frustrating, it's not uncommon for top-notch stocks to go through periods of lacklustre performance. And for long-term investors who dig deeper, examining the biggest short-term losers can sometimes reveal massive long-term winners. With that in mind, let's explore the worst-performing business of this batch – WPP. WPP's lacklustre performance isn't particularly new for existing shareholders, given the stock has been on a downward trajectory since hitting highs of around 1,200p in 2022. Not all of this can be blamed on the management team. As a firm that specialises in advertising and public relations, market conditions have been quite unfavourable following the rise of inflation in 2023. However, the firm has seemingly been slow to respond to the shifting landscape of AI-driven tools. And it seems that the group's corporate culture is also diminishing. Anonymous employee reviews on Glassdoor don't paint a rosy picture. And earlier this year, CEO Mark Read faced significant backlash after introducing a mandatory return-to-office policy that didn't go down well with employees. In fact, over 20,000 workers signed a petition to try and overturn this decision. Needless to say, in an industry where top-tier talent is crucial, having a large part of the workforce seemingly unhappy doesn't bode well for attracting and retaining the best staff. Despite the seemingly gloomy state of the business, there's room for cautious optimism. The firm's multi-year restructuring plan is finally nearing completion. As such, shareholders may soon be reaping rewards from some long-awaited efficiency gains. At the same time, investments in AI tools, while late, have started accelerating with systems like WPP Open. Such moves are anticipated to improve client retention. And with the wider economic landscape improving and advertising spend on the rise, WPP could soon enjoy recovery tailwinds that get its financials back on track. With the shares trading at a forward price-to-earnings ratio of just 6.6, investors have seemingly set the bar quite low. So, if WPP can get things back on track, the share price could bounce back significantly, enabling contrarian investors to benefit. Having said that, continued weak performance paired with a fiercer competitive environment could equally result in further share price losses. In other words, there's an element of risk that investors need to investigate further before jumping in. The post Are these the best UK stocks to consider buying right now? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Basic Materials Roundup: Market Talk
Find insight on gold prices, Emirates Global Aluminum, Fresnillo and more in the latest Market Talks covering Basic Materials.
Edinburgh Reporter
16-05-2025
- Business
- Edinburgh Reporter
Market Momentum in May 2025
As of May 2025, the FTSE 100 index has demonstrated notable resilience, reflecting a complex interplay of sector-specific performances and broader economic factors. While certain sectors have propelled the index forward, others have lagged, underscoring the importance of targeted investment strategies, particularly for those engaged in Contracts for Difference (CFD) trading. Defense and mining sectors have emerged as significant contributors to the index's strength. Companies like Babcock International and BAE Systems have experienced substantial gains, driven by increased defense spending and geopolitical tensions. Similarly, mining firms such as Fresnillo have benefited from rising commodity prices, particularly in precious metals. These sectoral movements offer CFD traders opportunities to capitalize on upward trends through long positions. Conversely, other sectors have faced headwinds. For instance, the financial sector has encountered challenges due to regulatory changes and fluctuating interest rates, impacting banks' profitability. Retail and consumer goods companies have also experienced volatility, influenced by shifting consumer behaviors and supply chain disruptions. Such dynamics present CFD traders with potential short-selling opportunities, allowing them to profit from declining asset values. Photo by Maxim Hopman on Unsplash Forex Markets: Currency Fluctuations and Strategic Considerations The forex market in May 2025 is characterized by heightened volatility, driven by geopolitical events, economic data releases, and central bank policies. The U.S. dollar has exhibited strength against traditional safe-haven currencies like the Japanese yen and Swiss franc, buoyed by positive developments in U.S.-China trade negotiations. This appreciation reflects increased investor confidence in the global economic outlook. However, the dollar's performance is not uniformly robust. Concerns about the U.S. fiscal deficit and potential interest rate cuts by the Federal Reserve have introduced uncertainty. A Reuters poll indicates growing skepticism among forex strategists regarding the dollar's long-term stability, with over 55% expressing concern about its reliability as a safe-haven currency. Other currencies have also experienced significant movements. The euro and British pound have shown resilience, supported by stable economic indicators and cautious optimism about future growth. Emerging market currencies, such as the Chinese yuan and Australian dollar, have fluctuated in response to commodity price changes and domestic economic policies. These dynamics offer CFD traders a range of opportunities to engage in currency pairs that align with their market outlooks. For instance, traders anticipating continued strength in the U.S. dollar might consider long positions in USD/JPY or USD/CHF pairs. Conversely, those expecting a dollar decline could explore long positions in EUR/USD or GBP/USD. It's crucial for CFD traders to employ robust risk management strategies, including stop-loss orders and position sizing, to navigate the inherent volatility of the forex market effectively. Commodities: Market Trends and Investment Opportunities Commodity markets in May 2025 present a mixed landscape, influenced by supply-demand dynamics, geopolitical developments, and macroeconomic factors. Oil prices have experienced an uptick, driven by progress in U.S.-China trade talks, which have restored market optimism and signaled potential increases in demand from the world's two largest crude-consuming nations. In contrast, gold prices have declined as improving trade relations have reduced investor demand for safe-haven assets. Spot gold has fallen by 1.4%, with analysts suggesting that in the near term, gold could continue to decline due to the appreciating dollar and reduced haven demand. Silver, however, has shown modest gains, rising by 0.4%, and is viewed by some analysts as having potential for a rally, especially given its broader industrial applications, including use in solar panels. For CFD traders, these commodity trends offer various avenues for investment. Those anticipating continued oil price increases might consider long positions in oil CFDs, while expecting further declines in gold could lead to short positions in gold CFDs. Silver's potential for growth presents opportunities for long positions, particularly for traders focusing on industrial demand factors. It's essential for traders to stay informed about global economic indicators, geopolitical events, and supply chain developments that can impact commodity prices. Employing technical analysis tools and maintaining a disciplined approach to risk management will be crucial in navigating the commodity markets effectively. Strategic Considerations for CFD Traders The diverse movements across the FTSE 100, forex, and commodity markets in May 2025 underscore the importance of strategic planning and adaptability for CFD traders. Understanding sector-specific dynamics within the FTSE 100 allows traders to identify potential opportunities for both long and short positions, depending on the prevailing market trends. Commodity markets require a keen awareness of global supply-demand balances, geopolitical tensions, and macroeconomic indicators. CFD traders should monitor these factors closely to identify potential entry and exit points for their trades. Across all markets, effective risk management is paramount. Implementing stop-loss orders, diversifying trading portfolios, and maintaining appropriate position sizes can help mitigate potential losses. Additionally, continuous education and staying informed about market developments will enhance traders' ability to capitalize on opportunities and navigate challenges in the dynamic landscape of CFD trading. Like this: Like Related
