• Citigroup upgrades Fresnillo PLC (OTC:FNLPF) to a "Buy" rating with a new price target of 4,600 GBp, reflecting confidence in the company's future amidst rising silver prices.
• Projected silver prices could reach $100 per ounce, potentially boosting Fresnillo's EBITDA to approximately $4.9 billion, a 24% increase from previous forecasts.
• Despite a slight decrease in stock price, the positive outlook is based on strong momentum in spot silver prices, which could significantly enhance Fresnillo's cash generation capabilities.

Fresnillo PLC (OTC:FNLPF) is a leading precious metals mining company, primarily focused on silver and gold production. It operates several mines in Mexico and is one of the largest silver producers globally. The company competes with other major mining firms like Pan American Silver and First Majestic Silver. Recently, Citigroup upgraded FNLPF to a "Buy" rating, reflecting confidence in its future performance.

On January 14, 2026, Citigroup announced an upgrade for FNLPF, setting a new price target of 4,600 GBp, up from 4,000 GBp. At the time, FNLPF was trading at $50.45. This upgrade is largely driven by the ongoing surge in silver prices, which Citi believes will benefit Fresnillo significantly. The bank's optimism is based on the strong momentum in spot silver prices, currently in the high $80s per ounce.

Citi projects that silver prices could reach $100 per ounce, potentially altering the earnings profile for silver producers like Fresnillo. Under these projections, silver is expected to average $78 per ounce in 2026. This could boost Fresnillo's EBITDA to approximately $4.9 billion, a 24% increase from previous forecasts. Such growth would significantly enhance the company's cash generation capabilities.

Despite the positive outlook, FNLPF's current price of $50.45 reflects a slight decrease of 0.06, or -0.12% in percentage terms. The stock has fluctuated between $50.12 and $51.50 today. Over the past year, FNLPF has seen a high of $51 and a low of $7.75, indicating significant volatility. The company's market capitalization stands at approximately $37.18 billion.

The trading volume for FNLPF is currently at 700 shares on the OTC exchange. Citi notes that consensus estimates have not fully accounted for the potential impact of rising silver prices on Fresnillo's earnings. As silver prices continue to rise, the implications for Fresnillo's free cash flow and overall financial performance are substantial.