Fresnillo: Still Not Expensive After Its Share Price Quadrupled
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The Investment DoctorInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryFresnillo is poised for a robust H2, driven by surging silver and gold prices and strong production guidance.H1 free cash flow reached $700M; full-year 2025 free cash flow is projected at $1.4–1.5B, with significant leverage to metal prices.The Probe Gold acquisition offers strategic diversification into Canada, adding a large, high-NPV gold project at an attractive multiple.Despite a quadrupled share price and $29B market cap, FRES' valuation remains justified if precious metals sustain current elevated levels. herstockart/iStock via Getty Images Introduction Fresnillo plc (FNLPF) is one of the largest silver and gold producers in the world with an anticipated production of approximately 50 million ounces of silver and exceeding half a million ounces ofThis article was written byThe Investment Doctor23.34K FollowersFollowThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I have no position in Fresnillo. I have a long position in Probe Gold and will tender my shares into the Fresnillo offer, or sell them on the open market.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.