Fresnillo PLC (LSE:FRES) shares headed higher on Friday after the miner was granted an upgrade by Berenberg analysts.
Results earlier in March reflected improving financials, both on strong precious metal prices, but also operational stability and better cost control, Berenberg said in a note.
“That, in our view, underpins better visibility on shareholder returns,” analysts added, as Fresnillo was taken from a ‘hold’ to a ‘buy’ rating.
Results had shown a near seven-fold increase in operating profit to $945.8 million for last year, as a special dividend was also declared to take shareholder returns to $547.5 million.
Berenberg noted there was “scope” for other special payouts, were gold and silver prices to remain elevated, given Fresnillo’s now strong balance sheet.
Shares were up 3.3% at 866.50p on Friday.