Shares of Fresnillo Plc (LON: FRES) are down 28.3% in 2021, and many are wondering whether the mining company’s shares will recover and rally higher.
While nobody has a crystal ball on the markets and a rally in Fresnillo prices would be driven by factors such as the prices of gold and silver, among other internal company factors.
Most analysts have a hold rating on Fresnillo shares, while some have a buy rating on the company, but there are no sell recommendations on the miner.
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Fresnillo is still the world’s largest silver miner globally, but analysts are worried about the steady decline in mine productivity witnessed since 2015.
The miner is also a major gold producer in Mexico and should benefit from rising gold and silver prices, yet its shares haven’t responded positively to the rising prices.
Fresnillo’s long-serving chairman Alberto Bailleres resigned from the company’s board, and his son Alejandro Bailleres took over the position in April.
The company’s shares are trading at what appears to be a support level, but the shares have a history of not respecting support and resistance levels in the past. Therefore, there are no guarantees that the current level shall hold.
I will be monitoring Fresnillo shares to see if they can rebound and rally higher in future. In the meantime, I would not open any new positions in the firm until we get a strong bullish signal in the form of a rally over several days.
*This is not investment advice.
Fresnillo share price.
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