Fresnillo Plc (LON: FRES) share price has fallen 27.7% since the year started, but they appear to have recently bottomed. Can they rally higher?
The precious metals miner’s shares have been slowly trending lower since the year started despite releasing multiple positive announcements, including its recent earnings report.
The Mexico-focused company released its H1 earnings results on 3 August 2021, revealing that it generated profits worth $308.4 million, representing a 445.8% jump to the $56.5 million profit recorded in a similar period last year.
Fresnillo’s revenues rose to $1.47 billion in the six months, a 39.1% increase in sales generated in H1 2020. Furthermore, the company lowered its capital expenditure estimates to $580 million from the previous figure of $680 million.
The mining company maintained its full-year production guidance of 53.5 million to 59.5 million ounces of silver and 675,000 ounces to 725,000 ounces of gold. Yet, its share price barely moved following the announcement.
Fresnillo’s share price edged higher following the earnings announcement but has since given up all its gains over the past two months, driven by investor apathy towards the miner’s stock.
However, all this could change if the past few days rally is sustained for much longer.
Fresnillo shares have edged higher since hitting the 772p support level, tested thrice since June this year. The shares have formed a bottoming pattern on the price chart, but it remains to be seen whether the rally shall last much longer.
So far, we have the proper setup for a rally higher, but Fresnillo shares must first clear the hurdles at the 824p and 869p resistance levels before they can rally much higher. Investors should watch how the shares react to these levels before jumping in.
*This is not investment advice.
Fresnillo share price.
Fresnillo shares are down 27.71% since the start of the year but are attempting to rally higher. Can they?
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