Fresnillo jumps 5% as gold, copper rally lifts FTSE 100 miners

Mining stocks led the FTSE 100 higher, with Fresnillo up 5% as gold held above $4,060 an ounce and LME copper pushed toward $14,000 a tonne.

Fresnillo's gains followed interim results that beat expectations on higher volumes and lower-than-forecast operating costs, with gross profit more than doubling year on year. The Mexico-focused precious metals producer reported first-half revenue of $3.38 billion, up 74.7%, and gross profit of $2.36 billion, up 130.7%, with adjusted earnings per share of $1.75 against a $1.66 consensus estimate.

Copper traded near its highest in two months on the London Metal Exchange, supported by falling exchange inventories against a supply backdrop that has eroded all year. A rock burst at Codelco's El Teniente, force majeure at Freeport's Grasberg operation in Indonesia and disruption at Kamoa Kakula in the Democratic Republic of Congo have stripped a substantial slice of output from the 2026 balance. Chilean storms have since forced Codelco to halt surface operations at Andina and suspend ore shipments from El Teniente.

Traders are also watching metal accumulating in United States warehouses ahead of a decision from Donald Trump on copper import tariffs, which is tightening supply everywhere else. Underneath it sits structural demand from data centre construction and grid investment.

Endeavour Mining, which operates gold mines across West Africa, rose 3% on the same tailwind, while Antofagasta gained 3% as copper held near its two-month high. Glencore completed the picture with a 3% rise on the day it reported half-year results, having already flagged that adjusted earnings before interest and tax from its marketing division would come in at roughly $3.3 billion, more than double the $1.4 billion booked a year earlier. The trading arm did the heavy lifting through a first half in which copper output rose 15% but zinc, cobalt and gold all fell, with full-year guidance left unchanged.

Gold, Silver Prices Underpin Fresnillo's Beat

Fresnillo's operational numbers, pre-released in its second-quarter production update in July, showed silver production fell 11.4% year on year to 22.0 million ounces and gold output declined 7.3% to 290,900 ounces. That was more than offset by a 134.4% surge in the average realised silver price to $78.9 an ounce and a 47.3% jump in the gold price to $3,666.80 an ounce. The company held full-year production guidance but cut its 2026 capex projection to $500 million-$550 million, down from the $765 million guided at its annual results in March.

The sector has also drawn money rotating out of energy, after Brent slid toward $80 a barrel on hopes of a deal to reopen the Strait of Hormuz. The mining rally comes as gold sits well above its historical average and copper's supply-demand balance tightens, with the next catalyst being the US tariff decision and any further disruption across Chilean and Indonesian operations.

This article is for informational purposes only and does not constitute investment advice.