Despite double-digit levels of inflation, gold looked listless for many months in 2022 – a price spike after the onset of war in Ukraine was followed by an underwhelming period due to the strong US dollar and rising interest rates. Miners, meanwhile, were hit by rising costs given their need for fuel and other pricey consumables.
Meanwhile, the top ranks of the UK’s listed gold and silver miners have thinned significantly in the past 12 months, as Russian producers have either been forced off the exchange or decided to up sticks themselves. But investors can still find largescale production, stable dividends and an expansion play among the remaining companies.
The old favourite of this bunch is Fresnillo (FRES), the Mexican silver miner. It was a pandemic standout, its share price skyrocketing in 2020 before retreating as the silver price failed to hold onto its highs. Costs climbing and operational challenges have also hit the shares, although the recent precious metals bull run has brought buyers back.