RE: Fres trades over 20x p/e vs Hoc at 7x15 Mar 2024 21:22
The problem FRES has tornado is the yield, who wants mining risk for a 1% return when you can get 4% risk free on 2 year notes?
It however at a tipping point imo, higher metal prices translate to higher distributions of income which should be increase in like with higher metal prices which inturn become more interesting for income investors as rates begin to fall.
For me at least this is a pivot trade we should see leveraged capital returns as soon as the fed and MCB start to pivot, perversely though FRES needs the MCB to pivot first.