London, Feb 2, 2026, 10:30 GMT — Regular session
- Fresnillo shares dip after gold and silver prices take another hit, rattling miners listed in London
- Volatility in metals and stricter futures margin requirements are prompting traders to stay on edge
- FY25 results are set for March 3, while guidance for 2026 output remains under close watch
Fresnillo’s stock dropped 3.7% to 3,564 pence in early trading, following a 3,702 pence close on Friday. The shares have been volatile since reaching a one-year peak of 4,470 pence on Jan. 26.
This matters since Fresnillo acts as a high-beta proxy for precious metals in London. When silver and gold prices shift, the stock tends to follow — and recently, those swings have been intense.
This time, the squeeze is driven by the commodity side, not fresh company news. Traders scrambled to reprice the “metals boom” play in days instead of weeks.
Spot gold dropped 6.1% to $4,565.79 an ounce by 0726 GMT, while silver plunged 12% to $74.48, following a sharp selloff on Friday. The CME Group raised margin requirements—the cash traders must post to maintain futures positions. Tim Waterer at KCM Trade pointed to “forced liquidations and margin increases” triggering “a cascading effect.” CME says the new rules take effect after Monday’s market close. Reuters
The selling has extended past metals. Donald Trump’s choice of Kevin Warsh to head the Federal Reserve boosted the dollar and weighed on risk assets, analysts noted. “Investors view Warsh as more hawkish,” said Vivek Dhar of Commonwealth Bank of Australia. Reuters
Mining shares dragged the FTSE 100 lower in early London trading, slipping 0.4% by 0820 GMT, per Investing.com data. Fresnillo tumbled 4.5%, with fellow miners Antofagasta, Anglo American, and Glencore also retreating.
Fresnillo reported on Jan. 28 that full-year 2025 attributable silver production hit 48.7 million ounces, while gold reached 600,287 ounces. The company trimmed its 2026 outlook, now expecting silver output between 42 million and 46.5 million ounces and gold production from 500,000 to 550,000 ounces. The revisions reflect changes to mine plans and delays, including work on the Jarillas shaft at the Saucito mine. CEO Octavio Alvídrez emphasized the firm’s commitment to “safety, operational discipline and efficiency” amid what he described as a supportive metals-price environment. Investegate
The mood shifted sharply. Reuters noted silver is on track for its worst two-day drop since at least the 1980s, following a surge that more than doubled its price to a record $121.64 on Jan. 29. Ole Hansen of Saxo Bank pointed to “a massive retail frenzy” in silver-related products as the catalyst for the sharp reversal. Reuters
The next move could swing either way. Should forced selling ease and bullion hold steady, miners might rebound sharply. But if the sell-off continues, leverage works against them, pushing stocks lower amid thin liquidity.
Fresnillo’s FY25 preliminary results are due March 3.
