After two punishing years for Industrias Penoles SAB investors, the stock is poised for a rebound as the world’s biggest silver miner is having the best start in 8 years from surging metal prices, Bloomberg reports.
Penoles, the operator of seven silver, zinc and lead mines in Mexico, has returned 4.9% this year through Wednesday, the stock’s best start to a year since 2007. The eighth-best performer on Mexico’s benchmark IPC index this year, Penoles was the worst performer on the index the prior two years when it tumbled 56%.
The turnaround for Torreon, Mexico-based Penoles, founded in 1887, is linked to rising gold and silver prices, according to Fernando Bolanos, an analyst at Grupo Financiero Monex SAB.
The price of Indian silver rose 3.4% on Monday, February 2, making it the day’s biggest mover. After two days of falling prices, it closed at INR 38,655 ($623.26) per kilogram. Japanese silver took a large hit on yesterday, sliding down 3.1% before landing at JPY 646.00 ($5.51) per 10 grams. Following a two-day drop, the price of US silver increased by 1.8% to $17.23 per ounce. After falling for two days, the price of Chinese silver rose 1.7% to CNY 3,635 ($581.65) per kilogram.
Following a 2.0% rise yesterday, the price of US gold bullion closed at $1,283 per ounce. The price of Chinese gold bullion rose 1.7% to CNY 257.90 ($41.27) per gram after a two-day drop. Indian gold bullion saw its price rise 1.6% to INR 27,899 ($449.84) per 10 grams. Japanese gold bullion finished the day down 0.1% to JPY 4,843 ($41.32) per gram.
The price of US platinum bar is back up, rising by 1.6% on Monday to close at $1,238 per ounce. Japanese platinum bar ended the day at JPY 4,658 ($39.75) per gram, after the 1.5% drop yesterday. Following a two-day drop, the price of Chinese platinum bar increased by 0.8% to CNY 266.00 ($42.56) per gram.
The price of US palladium bar fell 0.3% to $769.00 per ounce. The price of Japanese palladium bar fell 0.2% to JPY 2,944 ($25.12) per gram on Monday after two days of no change. Chinese palladium bar held its value on Monday at CNY 174.00 ($27.84) per gram.