5 days to the date of ISA, this cash machine is my high -100 ftse stock

On April 5, the window to take refuge up to £ 20,000 at the end of fiscal year 2024/25. But eleven I have parked my proceeds in a tax-free vehicle, my attention Than Turns to where to invest. One of my outstanding actions is this Ftse 100 Cash cow

Tenga en cuenta que el tratamiento fiscal depende de las circunstancias individuales de cada cliente y puede estar sujeto a cambios en el futuro. The content in this article is provided only for information purposes. It is not intended to be, it does not constitute any form of fiscal advice. Readers are responsible for carrying out their own due diligence and obtaining professional advice before making investment decisions.

A touch of gold

Despite publishing a set of flutted results in the fiscal year24, Fresnillo (LSE: Fresh) Still more or less under the radar of most private investors. A year ago I could collect shares in the company for 435p. Today, 948p are operated.

In the very recent past, most investors would not touch precious metal miners with a bargepole. But when a company has a net cash of $ 458 million, it sees that its income grows by 26% and Ebitda more than double, then it is surprising that I have been increasingly excited with the growth potential here.

Gold prices have remained above $ 3,000 now for several weeks. I have no idea if they can push higher from here; But I know that for each ounce of gold is mines, its profit margin is $ 1,000. In 2025 and 2026, he hopes to produce around 580 Koz per year. That gives a gross gain of gold production only $ 580 million.

The silver link to the gold cycle

Despite an increase in gold prices, the true reason why I remain so optimistic in the actions is for its silver game.

La Plata has a movement history explosively. In March last year, the price of metal increased by 50% in a matter of months. And that is nothing compared to some of the movements of the past.

In the early 1980s, at the top of an inflation cycle of a decade, its price literally became parabolic, surpassing to $ 50. The feat was repeated again 2011, after the world financial crisis.

I am increasingly becoming the opinion that we are potentially on the cusp of another important explosive movement. A fact is safe: there has never been a gold cycle in which silver has not participated.

Risks

The last years have been extremely difficult for Fresnillo. The increase in energy, labor and explosive costs really came to the conclusion. The spectrum of greater regulation on the mining industry is, and will continue to be, an undoubted threat to the viability of its operations.

Many years ago he concluded a contract with Peñoles (the 'Silversstream' contract), for which he would receive a net cash agreement of his Sabinas Silver mine. However, last year he received a warning that the life of that mine has been significantly reduced, which resulted in lower future cash flows. At the moment, the exact amount is unknown.

Fresnillo is still one of my most risky moves in my actions and actions of Isa. But the possibility of huge yields in a bullish market with sustained precious metals is very real.

In 2024, savings and cost efficiencies totaled $ 40 million. If you can maintain and develop this type of savings, then the price of the shares could obtain an additional increase if metal prices remain close to where they are now. For me, I can never have enough of the actions, so I bought more in the last month.