Billionaire Carlos Slim’s gold and silver producer Minera Frisco SAB soared 26 percent in its first day of trading in Mexico City after being spun off from Grupo Carso SAB as investors bet precious metals prices will increase.
Precious metals prices will climb 28 percent in the next year, giving investors the best returns among commodities in 2011, Goldman Sachs Group Inc. said Dec. 13. The bank raised its 12-month forecast for the S&P GSCI Enhanced Total Return Index’s rally to 18 percent from 16 percent.
Source: Bloomberg News
“It’s good news for the Mexican mining sector that the world’s richest man is very interested in the mining business,” said Rodrigo Heredia, an analyst at Ixe Grupo Financiero SAB in Mexico City.
Mining is a good investment as demand grows for construction and manufacturing in developing nations such as China, Slim said in a June speech in New York.
Frisco runs gold, silver, copper and zinc mines in Mexico.