new-recommended-broker-banner new-recommended-broker-banner
Practice Stock Trading Your capital is at risk

Fresnillo Share Price Has Fallen 27.7% This Year but Could Have Bottomed. What’s Next?

Updated: 8 Oct 2021

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.

new-recommended-broker-banner

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.

IG chart of Fresnillo share price 08-10-2021

Fresnillo shares are down 27.71% since the start of the year but are attempting to rally higher. Can they?

Should You Invest in Fresnillo Shares?

After a fall from the $2,000 level, could gold be set for another run higher? If you're a gold investor, you won't want to miss out on these stocks… Discover which companies our analysts are focusing their attention on for the coming months. If gold does move back to $2,000, these investments could see significant gains

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .