Fresnillo PLC Sees Further Upside Amid Gold‑Market Strength
The mining company Fresnillo PLC (OTC: FNLPF) has attracted renewed analyst attention following a surge in gold prices, the highest annual rally since 1979. According to a report from Benzinga dated 17 October 2025, JPMorgan analyst Patrick Jones has upgraded the stock to Overweight and projects an additional 80 % upside.
Key Drivers Highlighted by JPMorgan
| Item | Detail |
|---|---|
| Gold Market Context | Gold has experienced a 300 % year‑to‑date gain, driving demand for gold‑mining equities. |
| Fresnillo’s Performance | The stock has risen more than 300 % YTD and outperformed peers by roughly 200 %. It is the best‑performing miner on the FTSE 100 for both YTD and year‑over‑year. |
| Macro Tailwinds | Positive tail risks for gold and a re‑rating potential for Fresnillo were cited as catalysts for the projected upside. |
| Analyst Upgrade | JPMorgan first upgraded Fresnillo to Overweight in April 2024; the recent report extends confidence in continued upside. |
Company Fundamentals
Fresnillo PLC operates a portfolio of mines in Mexico, including Fresnillo, Saucito, Cienega, Herradura, Noche Buena, and San Julian. The company also develops the Pyrites Plant and Herradura DLP, and maintains several exploration projects such as Orisyvo, Juanicipio, Las Casas Rosario, Cluster Cebollitas, and Centauro Deep. Fresnillo holds concessions covering approximately 1.8 million hectares and offers ancillary services such as leasing equipment, producing dore bars, and providing administrative support.
The firm’s market capitalization is 442 136 140 800 MXN. Its 52‑week trading range is 161.54 MXN – 605 MXN, with a close of 600 MXN on 16 October 2025. The price‑to‑earnings ratio stands at 57.12.
Market Context
While the FTSE 100 experienced a modest decline on 17 October 2025, falling 0.86 % to 9 354,57 points, Fresnillo’s performance remains decoupled from broader UK market movements. The miner’s share price has shown resilience against market volatility, driven primarily by commodity fundamentals.
Outlook
JPMorgan’s 80 % upside projection reflects expectations that Fresnillo will continue to benefit from:
- High gold prices and sustained demand for gold‑silver concentrates.
- Positive tail risks that could further elevate gold valuations.
- Re‑rating potential as market participants reassess the company’s growth prospects.
Investors monitoring the materials sector should note Fresnillo’s strong recent performance and the analyst endorsement that may influence future trading dynamics.
