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Fresnillo a ‘buy’ after recent falls, says UBS http://www.ifamagazine.com/news/broker-snap-fresnillo-a-buy-after-recent-falls-says-ubs-284590
Hi New Kid, personally I cannot see this falling to anywhere near £8 but I have been known to be wrong! I am adding more Fres to my portfolio at these prices. Wouldn't recommend a buy to anyone who needs a quick return though just in case I am wrong, but as you say this is a share to buy into at a good price if possible and to hold. The question is what is a good price having regards to the nice divis I receive on my FRES shares.
See url http://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=FRES.L British Bulls system recommending a buy according to their charts.
UBS cuts Fresnillo target because of impact of Mexican mining taxes See url http://www.ifamagazine.com/news/broker-snap-ubs-cuts-fresnillo-target-on-mexican-mining-taxes-283218 Still confused as to which way this SP is likely to go in the near future so sold half of my holding in FRES just in case!
Most gold and silver miners saw their share prices fall in-line with underlying metal prices last week, but when markets opened this morning, three of the biggest London-listed gold and silver producers saw their share prices plummet. Shortly after markets opened this morning, Fresnillo (LSE: FRES), Hochschild Mining (LSE: HOC) and African Barrick Gold (LSE: ABG) all fell by 10% or more, despite the price of gold remaining stable at around $1,325 per ounce. So what's behind these sudden falls? One factor could be a proposed mining levy in Mexico. All of Fresnillo's gold and silver production is in Mexico, and Hochschild Mining also has significant operations in Mexico. According to the FT, the Mexican government is proposing a new 7.5% levy on miners' pre-tax profits. Both Hochschild and Fresnillo are already struggling against the effects of high operating costs and falling metals prices, and this further cost could leave both companies struggling to turn a profit, now that gold and silver prices are trending lower again. Shortly after 9am, both Fresnillo and Hochschild Mining were down by 13%. One factor could be a proposed mining levy in Mexico. All of Fresnillo's gold and silver production is in Mexico, and Hochschild Mining also has significant operations in Mexico. According to the FT, the Mexican government is proposing a new 7.5% levy on miners' pre-tax profits. Both Hochschild and Fresnillo are already struggling against the effects of high operating costs and falling metals prices, and this further cost could leave both companies struggling to turn a profit, now that gold and silver prices are trending lower again. Shortly after 9am, both Fresnillo and Hochschild Mining were down by 13%.
When stocks fall they say never try to catch a falling knife by averaging and with all the past news, results, commodity prices and opinions over recent months it is not surprising that FRES fell so badly. When stocks rise they say reach for the sky for the sky's the limit ; with articles like this http://www.maxkeiser.com/2013/08/gold-and-silver-surge-on-open-in-asia-short-squeeze-likely sentiment could soon be turning to signal that it is a time to buy. Anyone have an opinion about FRES
Tom 78, I thought somebody would have replied by now to your question. I saw it when you posted iy but have been tied up since. The answer is that jumping metals prices across the board on the back of Bernanke's dovish comments sparked some big moves in the mining sector today. Gold rose 2.9%, silver was up nearly 4.0%, while copper jumped over 3.0%. Fresnillo, Vedanta, Randgold, Anglo American, Antofagasta, Rio Tinto, BHP Billiton and Glencore Xstrata were among the best performers this morning on the FTSE 100.
Thanks for your timely post., I only saw it at 13.18 and thought I would add to my FRES holding and dealt at 10.47280 to bring my average purchase rice of that stock down to 11.53 not that I am in the sellig mood for that onyl fell badly today because of the Citigroup SELL even though they said: Despite a recent site visit showing "impressive progress". Management is delivering on goals, transparent and shareholder focused. We have maintained for some time that Fresnillo is best-in-class among UK precious metals miners, but our bearish view on silver and our concerns about its limited free float causing excessively high valuations means we rate Fresnillo as sell
I agree with you New Kid, indeed yesterday I doubled my holding in this company albeit I am showing a substantial paper loss on my original investment. My reasoning being that since First Eagle Investment Management invested in the 19,633,430 new ordinary shares at £11.30 per Placing Share, that being a 1.99% discount to the closing price at Friday 26th of April and represented approximately 2.74 per cent. of the number of existing shares of the Company, the current price could well be an exceptional investment opportunity at the current SP. Indeed the girations of this SP demonstrates the advantages of the management agreeing to a deal with a single shareholder rather than making a proposal to all existing holders, it was less expensive and avoided the possibility of a pitfall problem if the share fell suddenly, as in our case. Good Luck.
I hold many mining stocks, some I buy hoping SP to rise and others I invest in for the dividends, it was the latter that influenced my puchase of this stock albeit I am currently sitting on quite a loss but am not too concerned. Incidently I have an investment in ESSR I wonder what they will do to become compliant with changes to FTSE rules. Personally I like the idea of one sharehiolder being involved as in the FRES case and will be expecting this share to move upwards, albeit slowly as their investment was substantial and I think will inspire confidence for the future.
Qheen Elvis you said on 18th April that you would like some news one way or another about the free float issue. The news today of the sale of 19.6 million shares at 11.30 pounds per share - a 1.99 percent discount to Friday's close - raises roughly 220 million pounds ($341 million) for the group, and means the world's largest primary silver producer is now compliant with changes to FTSE rules that require constituents to have at least 25 percent of their stock available for sale must be reassurring, for an existing shareholder to invest 220 million must be the best vote of confidence for everyone - do you agree
I read a similar worded article in today's Telegraph. Here is url to online version http://www.telegraph.co.uk/finance/newsbysector/industry/mining/10006333/Speculative-traders-caused-gold-to-crash-says-WGC.html Quote: “It has become increasingly clear over the course of the past week that the fall in the gold price was triggered by speculative traders operating in the futures markets,” Aram Shishmanian, chief executive of the WGC, said. “Their short-term view of generating a trading profit is in stark contrast to the views of long-term investors in gold, as evidenced by the massive wave of physical gold buying that began over the weekend and accelerated following Monday’s further decline.”
Sam I am showing a loss on my recent purchase of FRES but hold a lot of other shares in my mining portfolio which have all taken a recent hamering. That said, I am confident that mining stocks are more likely to go up than down and I will be purchasing more stock once I see a positive upward trend.
Article published today recommending buying of FRES and other gold shares See url http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20836932 Quote: In our view, this sell-off has once again created some short- and long-term opportunities to pick these mining stocks up at what could be once-in-a-lifetime low prices," said Ronnie Chopra, Head of Strategy at Tradenext. He said that Tradenext is a buyer of African Barrick Gold, Petropavlovsk, Kazakhmys, Vedanta, Fresnillo and Ferrexpo.
I thought that this morning's RNS was both Positive and Reassuring but wonder if it can impact SP in the short term - interested in learning of other opinions and whichway this share is likely to me. Personally, withcash to invest I am still not buying or selling any of my mning stocks for the time being but was nearly tempted to buy RRS this morning.
RRS do word their RNS as adverts, they generate more positive articles via their RNS's than any of my other mining stocks and that last one I am sure will do well and generate publicity and impact the SP ;positively. Regarding FRES, I think tomorrw will show which way this share is likely to go in the near future, if it can hold its current price when going ex-dividend it will be a very positive pointer in my opinion
I am not selling or buying any of my mining portfolio at the moment. That said, I do have a cash bank awaiting to invest in mining stocks but it is so difficult to read the market at the moment so doing nothing seems to be my best option. How do you see things progressing?
As you may know I have an investment in RRS and other mining stocks but decided to invest in FRES because of a possibility of future silver scarcity materialising that I had read should have anupward impact on this share price making it worthwhile. I was unsure because of the SELL recommendations mentioned by sam959 but took the plunge, albeit my mining portfolio is taking a battering at the moment and am wondering just how much more they are likely to fall for they seem to be so out of favour at the moment.