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Silver miner Fresnillo has seen its shares rally in recent sessions even as the silver price tests a new low.
This divergence raises the question as to whether the bounce in the share price can be sustained. We have already seen production at the firm begin to falter, and while Fresnillo expects output to rise over the coming year, the immediate future looks difficult.
The chart below shows the clear divergence between Fresnillo’s share price and the silver price: