First Eagle Gold Fund on Industrias Peñoles SAB de CV
Thesis
Peñoles is a major Mexican producer of refined silver as well as gold, zinc and lead. A significant part of its earnings comes from its 75% ownership of Fresnillo, giving the company substantial precious-metals exposure. First Eagle highlighted strong headline results during the quarter. The fund believes operating leverage and cost-cutting initiatives position the business for continued margin expansion and cash-flow growth.
“Operating leverage and cost-cutting initiatives position Peñoles for continued margin expansion and cash flow growth.”