Fresnillo Soars as Top FTSE 100 Performer Amid Precious Metals Rally

Fresnillo is on track to conclude 2025 as the top-performing stock on the FTSE 100, boasting an impressive year-to-date surge of 416%. This remarkable growth is fueled by the strong performance of gold and silver, driven by central bank demand and global economic factors.

Fresnillo's Dominance in Precious Metals Market

The Mexican company, registered in the UK with headquarters in Mexico City, has made significant gains in the City. In today's session, the stock rose by 4.95%, recovering from a 1.5% dip the previous day, following strong fluctuations in precious metals.

Analysts are optimistic about Fresnillo's prospects. Citigroup raised its target price for the shares to 3,900 pence from the previous 3,000, reaffirming a “buy” recommendation.

Other Mining Giants Follow Suit

Other major mining companies in London also experienced positive performance. Anglo American increased by 2.5%, and Glencore rose by 1.8%, reinforcing the upward trend in the sector.

Gold and Silver Rally Drives Fresnillo's Success

Fresnillo secured its position as the top-performing stock of the year, according to the Financial Times, benefiting from the rally in gold and silver prices.

In 2025, gold gained 65%, while silver recorded an astonishing 130% increase. This surge was driven by record purchases from central banks seeking alternatives to the dollar, investors eager to capitalize on a “historic” movement, and a global environment marked by geopolitical instability, persistent inflation, and high public debt.

Precious Metals Prices Remain High

Despite a sharp decline yesterday, which saw silver experience its largest daily drop in over four years and gold also falling, prices remain close to record levels. Spot gold is trading at $4,370 per ounce (+0.9%), while silver is at $74.15 per ounce (+5%).

Fresnillo's Dual Advantage: Gold and Silver Production

In addition to its gold mines in Mexico, Fresnillo is the world's largest primary silver producer. The company benefits from the growth of industrial markets linked to solar panels and electric vehicles.

Financial Performance Highlights

This dual gold-silver approach has propelled profits to extraordinary levels. In the first half of 2025, earnings per share increased by 399%, the EBITDA margin rose to 56.9% from 36.5% the previous year, and free cash flow exceeded $1 billion, compared to $187.4 million in the previous period.

"Our continued commitment to managing operations as efficiently as possible will allow us to further capitalize on high precious metal prices," said Octavio Alvídrez, CEO of Fresnillo.

Potential Risks and Challenges

A significant drop in gold prices remains the primary risk. All of Fresnillo's mines are located in Mexico, where the government has introduced new environmental regulations and increased mining taxes.

Diversification Efforts

However, the recent acquisition of Canadian company Probe Gold for approximately $560 million demonstrates Fresnillo's efforts to geographically diversify its operations, gradually reducing its concentrated risk in Mexico.

Goldman Sachs' Optimistic Outlook

Goldman Sachs recently stated that they expect gold to reach $4,900 per ounce by the end of 2026 in their base scenario.

Fresnillo Financial Performance

The financial performance of Fresnillo in the first half of 2025 showcases a remarkable surge in profitability and cash flow, driven by the strong performance of gold and silver.

These figures highlight the significant impact of rising precious metal prices and efficient operational management on Fresnillo's bottom line.

Gold Price Trends in 2025

The gold market experienced substantial gains in 2025, driven by various global economic factors. The following table summarizes the key trends observed throughout the year.

Silver Price Trends in 2025

Similar to gold, silver prices saw a remarkable increase in 2025, fueled by both investment demand and industrial applications. Key factors influencing silver's performance are outlined below:

The combined effect of these factors led to silver's impressive 130% gain in 2025.

London Stock Exchange: Key Mining Stocks Performance

The performance of key mining stocks on the London Stock Exchange (LSE) reflects the broader positive trend in the precious metals sector. The following table compares the performance of Fresnillo, Anglo American, and Glencore.

This table illustrates the positive momentum in the mining sector, with Fresnillo leading the gains.

Breakdown of Fresnillo's Production

Fresnillo's financial success is closely tied to its production output. The following table presents key data on Fresnillo's production volumes.

Fresnillo's Stock Performance (2025)

Fresnillo's stock performance in 2025 has been exceptional, making it the top performer in the FTSE 100 index.

Factors Driving Precious Metals Rally

The rally in gold and silver prices during 2025 can be attributed to a combination of factors, including economic and geopolitical influences.