Berenberg lowers target price on Fresnillo

Berenberg acknowledged that Fresnillo, which operates a portfolio of precious metals mines in Mexico, had announced fourth-quarter silver production of 12.95m ounces and gold production of 215,000 ounces, taking 2020 production to 53.0m ounces of silver and 769,000 ounces of gold and beating expectation and guidance for gold on a stronger end to the year at its Herradura asset.

However, the German bank said disappointing guidance for 2021, with attributable silver production of 53.5-59.5m ounces, as a result of Covid-19 impacts on the ramp-up of its new Juanicipio mine caused it to trim 2021 expectations to 714,500 ounces of gold and 55.5m ounces of silver.

Berenberg also stood by its 'hold' rating on the stock.