Here’s a FTSE 100 share that I think could beat Rolls-Royce in 2026

Gold and silver costs have been hovering greater in latest months. Gold hit document highs over $5,500 per ounce and silver soared previous $100 per ounce for the primary time.

Enter FTSE 100 miner, Fresnillo (LSE:FRES). This mining large digs up gold and silver, primarily in Mexico. Over the previous yr, its share value rocketed greater by 430%. That’s insanely good for a FTSE 100 share as the typical for the index was round 22%.

Over the previous 5 years, it has even crushed Rolls-Royce shares, which could appear arduous to consider on condition that firm’s post-pandemic energy.

FTSE 100 high performer

However can Fresnillo proceed its meteoric rise in 2026?

Properly, that will depend on whether or not demand for gold and silver continues to climb. Rising gold costs have been pushed by central banks snapping up the shiny metallic, a weaker US greenback, and geopolitical tensions.

As for silver, it tends to maneuver much more dramatically than gold. Some even name it ‘gold on steroids’. Like gold, silver can be seen as a secure haven in instances of uncertainty. However in distinction, it has robust industrial makes use of too. As an illustration, it’s utilized in photo voltaic panels, electrical autos, and AI information centres. All of that are anticipated to be high-growth sectors for the approaching years.

Previously, when valuable metals have seen explosive rallies, they might grow to be fairly risky. Costs can swing wildly in each instructions. They may additionally expertise profit-taking within the quick time period.

That stated, many consultants anticipate medium- to long-term developments to push costs upward. Many main banking establishments goal over $6,000 for gold and over $150 for silver this yr.

As for Fresnillo, its direct tie to commodity supercycles just like the one we might be experiencing now make it a standout for continued outperformance in 2026. It delivered sturdy 2025 outcomes, however latest downward revisions to 2026 output have launched some warning.

Leveraged play on gold and silver

As a low-cost operator, it stays aggressive and provides revenue margin resilience and robust cash-flow era. A return on capital employed of over 17% suggests good use of capital. And a ahead price-to-earnings ratio of 30 is in keeping with historic averages throughout bull cycles. As a bonus, Fresnillo additionally provides a 2% dividend yield.

However keep in mind, if costs for valuable metals reverse for an prolonged interval, Fresnillo shares might endure within the close to time period.

That’s why I’d solely personal it as a part of a balanced and diversified portfolio. FTSE 100 shares are usually massive, mature, and established corporations that don’t usually witness triple-digit returns.

However every so often, there are outliers. Previously yr, there have been six FTSE 100 shares that resulted in returns of over 100%.

Whether or not we’ll see a repeat in 2026 is unknowable, however definitely attainable. That stated, after any near-term volatility in valuable metals costs, I feel long-term developments will proceed to help them. That ought to bode properly for Fresnillo in 2026.