RE: fres down31 Dec 2020 07:35
There's been a noticeable decoupling of FRES SP and PM prices. Even on solid green days for PMs, FRES bumbles along sub +2% and is nearly always outperformed by POLY and CELTF. I suspect the hedgies have tweaked their algos after the last disappointing lower ore grade report; I fear the next production report will be even worse. It looks like FRES has fallen out of favour after a brilliant Q2 and Q3 SP performance, despite the recent stimulus approval the SP is now lower than before. I just don't see tailwinds on the horizon that will propel FES back to 1380 and beyond. The fundamentals for higher PM prices due to money printer going brrr are sound, but I suspect Jamie Dimon and his mates at the Fed will continue to suppress PM prices.