The Conversation (0)
Mineweb’s Kip Keen published an overview of silver miners whose share prices have taken hits in the wake of this week’s poor silver price. The white metal reached a “fresh multi-year low” of under $14 per ounce on Wednesday, and major miners like Fresnillo plc (LSE:FRES) felt the effects.
Mineweb’s Kip Keen published an overview of silver miners whose share prices have taken hits in the wake of this week’s poor silver price. The white metal reached a “fresh multi-year low” of under $14 per ounce on Wednesday, and major miners like Fresnillo plc (LSE:FRES) felt the effects.
As quoted in the market news:
Among group of falling silver miners, Fresnillo’s decline stood out.
Fresnillo – the world’s dominant silver miner and also an important gold producer – was taken down over 7% to under 600GBp and to lows last seen in 2009. Its market capitalisation sank beneath $6 billion.
Apart from the fact its decline was among the worst – especially given it is the world’s largest silver miner – the market in London was clearly not giving Fresnillo credit for being a key gold miner (~50 million ounces silver & 700,000 ounces gold per annum).
In that respect it’s important to note gold – at its worst during London trading – declined half as much as silver, percentage wise (down about 2% versus 4% respectively.) And subsequently the price of gold recovered more than silver.
Fresnillo was clearly singled out and treated harshly for its silver production Wednesday.