It’s no shock that Fresnillo‘s (LSE:FRES) been one of the FTSE 100‘s best performers over the past week. The Mexican miner’s risen 17.8% as heightened macroeconomic fears have pushed gold and silver costs by way of the roof.

Can Fresnillo share costs proceed to take off, nevertheless? Let’s have a look.

Leveraged play

Fresnillo’s most well-known because the world’s largest silver miner, producing 56.3m ounces of the stuff final 12 months. However its vary of gold belongings has helped it to ship a greater return than silver up to now in 2025, up 53.2%.

Gold’s hit new peaks of round $3,245 per ounce in latest days, one other new excessive. It’s up 23.1% within the 12 months up to now, whereas silver’s additionally risen a wholesome 11.5%.

You’ll discover, nevertheless, that the Fresnillo share price has risen much more sharply than each these valuable metals in 2025. It is because miners present leveraged publicity — in different phrases, when commodity costs recognize, their revenue margins rise extra quickly as their fastened prices imply any income inceases have an outsized impression on earnings.

Operational energy

Fresnillo’s rocketing share price additionally displays the corporate’s strong working efficiency in latest occasions. Income and EBITDA leapt 29.3% and 136% respectively, in its newest 12 months, outcomes which completely display the ‘leverage’ impact in motion.

The underside line was bolstered too by $40m value of value financial savings, which pulled adjusted manufacturing prices 2.6% decrease. On the manufacturing entrance, each silver and gold output rose, the latter by 3.6% and beating expectations.

Fresnillo additionally continued to display its repute as a powerful money creator, which meant it completed 2024 with web money of $458.3m. It had recorded web debt of $304.4m a 12 months earlier.

In addition to giving it monetary headroom to take a position for progress, that is additionally permitting the enterprise to furnish traders with some tasty dividends.

Fresnillo raised the strange dividend on its shares to 32.5 US cents per share from 5.6 cents in 2023. It additionally delivered a particular dividend of 41.8 cents.

Threat vs rewards

This isn’t to say every part’s is ideal on the FTSE 100 miner.

Operational points at Peñoles‘ Sabinas mine impacted Fresnillo’s proceeds below the ‘Silverstream’ contract final 12 months. It’s doable that the contract’s ebook worth might be considerably decreased later in 2025.

It’s additionally essential to recollect the complexity and unpredictability of metals mining, and that whereas the corporate is prospering immediately, the specter of manufacturing outages, hovering prices, and disappointing exploration outcomes are a relentless menace.

But on stability, I’m optimistic Fresnillo’s earnings (and due to this fact its share price) can preserve hovering. That is thanks mainly to beneficial circumstances that might proceed fuelling valuable metallic costs.

Pressure over international commerce wars — the first driver for gold and silver extra just lately — isn’t prone to go away any time quickly. Issues over intensifying inflation and their impression on rates of interest may additionally worsen, whereas rising geopolitical instability and escalating army battle additionally looms within the background.

Whereas it’s not with out threat, I really feel Fresnillo might be the most effective shares to think about within the present local weather.