...when the silver price is deflated. The H1 2019 average silver price was approximately $15/0z. The average silver price for H2 2019 is likely to be around $17 which is a 13% increase. Now considering the output of silver was reduced by approximately 10% i'd say we are in a much better position than the current share price would suggest. But I agree, if the silver price does not explode higher from here to the 20's then Fresnillo will likely go down again. I think the H2 2019 results will be much better than expected as a result of the higher silver price.
This has been hammered far too much for a small reduction in output, considering the gold and silver price and projection going forward. Hopefully this is now the bottom (apologies for my last bottom prediction) and this now can break out of the downward trend its been on since 2016.
Agreed, however Fres must find support here otherwise its going lower. Long term horizontal support back from 2015 is about 570p. If the price breaks lower from here to say 560p, it'll decend further lower to a much lower price target.
...the gold and silver price. Gold and silver should do very well in the coming months as the Trade War deal hoax is revealed and investors head to safety assets. Based on technical analysis I predict a $21-22 /oz silver price by summer 2020. At that silver price Fresnillo will be twice this current share price or higher. They are still the biggest silver miner in the world and just by sheer volume of silver their Q4 and Q1 2020 results should be much better than most investors expect.
The 2016 support level of 575 held like a dream. With Silver about to explode higher I would imagine this will be the last time you see the 500's ever again. Not brave enough to average down though (if only I hadnt just bought a house).
In perspective these results makes sense. The silver price was back below $15/oz for the majority of the first quarter after being up above $16/oz the first quarter the year before. With inflation and higher costs this has led to really terrible results, however there must be balance and when silver gets going again, Fres will fly. However that is probably a lot further away now as a result of these results.
It could go as low as 735p. That's where the long term upward trend support line resides. Provided we bounce off of that we should recover quickly, especially as the silver prices is in a bull market. Gold silver ratio is getting battered, which is great for the bull market of precious metals. Look at Centamin, they had a cautious mining production statement and nearly 4 months later they have swung down and rising back up to where they were.
9% drop for a less than 5% drop in production in an environment where bullion prices are rising. Oversold. Wish I could buy more but I've already overpositioned myself in miners to the point where it'd be silly buying more.
nearly 5 years ago, it was the period of peak optimism for this company. The company had just consolidated its shares and the price went up 100% following this. I was sat on approx £10,000 profit. In my greed I kept my money in only to watch the share price drop, year after year after year as they handed out countless warrants and placings with me eventually making a huge loss. This company does one thing and one thing only. Rip off its shareholders. RUN! RUN FOR THE HILLS!
Gold is technically poised to break above the $1375/oz area. Once that goes it won't be long before $1500/oz is reached. Gold recently reclaimed it's 2016-2018 upward trendline and therefore the bullish trend is back on track. Expect the gold and especially silver miners to around double in the next year or so.