Citi Increases Price Targets for Glencore and Fresnillo Ahead of Q1 Production Reports

Citi has adjusted its price targets for Glencore PLC to £6.70 and Fresnillo PLC to £50, retaining buy ratings for both companies. The bank expects copper recovery to be delayed until the second half of 2026, with flat first-quarter outputs anticipated, influenced by lower mining grades and scheduled maintenance.

Iron ore production is projected to remain subdued due to seasonal shipment decreases in Australia. Citi has also forecasted stable gold and silver production at Fresnillo, while revised financial models incorporate higher energy prices and changes in gold price forecasts as key factors behind the target price modifications. This situation may lead to a cautious sentiment in the mining sector, particularly concerning production volumes.