From a fundamental viewpoint, the security price reflects an over-valuation with P/E ratio at 28.7x for 2013 and at 23.6x for 2014. EPS underlines a real difficulty to generate cash. Fresnillo has disappointed investors with a high level of depreciation on profits. During the last 12 months, EPS for 2013 and 2014 has been depreciated by 65%.

Technically, the GBp 737 support is still far and we don't see any durable rebound before the contact with this area. The recent breakout of the GBp 902 support offers a new decrease potential.

Active investors can initiate a short position around the current price to target a contact with the support at GBp 737. A stop loss must protect the position at around 50% a the anticipated performance.