Floated in may '08 at a share price of 525p. Shares in issue Dec '08 717,160,000.
Based in Mexico & listed on the LSE FTSE 250 index. (FTSE100 March '09)
Miner of Gold, silver, Zinc & Lead in Mexico
Produces approx 3m Oz silver, 280k Oz gold, 20k tons Zinc, 17k tons lead p.a.(2008)
Fresnillo has three producing mines, all of them in Mexico - Fresnillo, Ci�nega and Herradura; two advanced development projects - Fresnillo II, Soledad & Dipolos; and three exploration prospects - San Juan, San Julian, Orysivo, as well as a number of other long term exploration prospects and, in total, has mining concessions covering approximately 1.3 million hectares in Mexico.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Although this is currently in a sector which is not tipped to outperform the market in 2009, it seems that gold may be a safe haven which is currently boosting the FRES sp. Div yield for 2009 is 4.1%, P/E (08) 16.8 & currently a broker 'Strong buy' recommendation.

Given as a buy in todays' Sunday Telegraph- the worlds' largest silver miner.

Unfortunately, Shares Mag recently gave their opinion that the price of silver would not rise much during 2009, in comparison to gold. As FRES mines both, then they are at least covering both options, but Shares thought that gold only miners would benefit more.

The price of silver is down from a high of 20.81 last May .Did Shares say why they felt the price of silver would not rise much?

Regret can't put my hands on the article I read & just to add to the confusion it may have been a Minesite review rather than Shares mag. Apologies.
This from News Silver site:
"-- Posted 20 January, 2009
Silver did as predicted in the last update, dropping back towards $10 from the then price at $11.50. It got down to about $10.20 and then bounced. Now it is clearly rounding over beneath a small Dome distribution pattern, marking out what looks like a small Head-and-Shoulders top. Thus, we can expect a retest of the support in the $10.20 area soon, and should this fail then silver is likely to drop back to the next significant support level near last year's lows in the $8.50 - $9.00 area. While the earlier breakout from the severe downtrend and above the 50-day moving average were important technical developments that retain longer-term bullish implications, the falling 200-day moving average still a long way overhead means that it would appropriate for silver to drop back here and do more base building as preparation for a more determined advance later."

Thanks Harry.
I guess the increase of some 150% in the price in 2 months must suggest this share may be on hold for a bit.

Up 25 today(10%)

In this week's Shares Mag, Simon Griffin pretty much echoes the chart analysis as per my post #6. He is optimistic that silver will prove to be a good investment in 2009, as long as the critical chart support ($10.20) level holds & then breaks the $11.65 resistance level. Part of his theory is that the gap between the gold & silver price is unusually high. Given that the gold price is likely to increase this year, he predicts that silver will close the gap upwards.

"Fresbal Investments Ltd. ('Fresbal'), a subsidiary of Fresnillo plc, today announces that it received notice on 1 February 2009 from MAG Silver Corp (TSX: MAG, AMEX: MVG) ('MAG Silver') that its Independent Committee had instructed its independent valuator to suspend all work on the formal valuation being prepared in connection with Fresbal's offer for MAG Silver.

On 1 December 2008, Fresbal announced its intention to make a formal offer to MAG Silver shareholders and requested that a valuation be prepared, pursuant to applicable Canadian law. Fresbal has complied with its obligations under applicable securities laws in connection with the preparation of the valuation and has provided the independent valuator with all relevant information. Fresbal is disappointed with what it views as an inappropriate delaying tactic by MAG Silver.

Fresbal has asked staff of the Ontario Securities Commission to review the MAG Silver Independent Committee's decision to suspend work on the valuation. Fresbal intends to take the necessary steps to enable MAG Silver shareholders to receive the offer in compliance with all laws as soon as practicable, subject to the relevant conditions as outlined in the announcement dated 1 December 2008."

The stock is certainly firing on all cylinders at the mo.,up a further 23p so far today.
Wish I had got in at 1. !!

up by some 60% in the last month,and still well short of its flotation price.
Also,the outlook looks rosy for precious metals,
must still be a good run ahead

There cannot be many stocks that have had a run like fresnillo.
Up from 100 to 428 in a matter of a few months

Awesome & no major profit taking yet.
Difficult to set a target price , but I wonder if 500/550p is going to be a resistance level? Am happy to hold until that time, but with gold & silver prices set to increase throughout 2009 (?) I may be tempted to hang on if it breaks out further up.

The way things are at the moment,precious metals are being held up as one of the few places left to put your dosh.
It says volumes that it is no longer safe in the bank,

Broker very bullish here...

Fresnillo PLC

FORECASTS WI
2008 2009

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Canaccord Adams
19-12-08 BUY 33.80 13.52 27.04 6.76

2008 2009
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 182.53 24.03 9.44 138.51 18.87 6.93
1 Month Change 182.53 -9.77 -4.08 138.51 -8.17 0.17
3 Month Change -17.28 0.92 -0.06 86.16 6.92 2.81


GROWTH
2007 (A) 2008 (E) 2009 (E)
Norm. EPS -25.82% 131.48% -21.47%
DPS % % -26.59%

INVESTMENT RATIOS
2007 (A) 2008 (E) 2009 (E)

EBITDA 130.94m 278.09m 223.50m
EBIT 106.10m m m
Dividend Yield % 2.16% 1.59%
Dividend Cover x 2.55x 2.72x
PER 42.05x 18.16x 23.13x
PEG -1.63f 0.14f -1.08f
Net Asset Value PS 25.01p p p

Added a few more.

Speculation is that positive news out very soon.

From pro Tipster Zak Mir this morning..



Zak Mir



Reged: 28/06/07
Posts: 649
Re: FRESNILLO (FRES) - Largest Primary Silver Producer
#439934 - 19/02/09 08:22 AM



I am always about. I think the easiest thing to say is that while above the initial September high of 410p, we should head to the all time high of 575p, off the back of the latest 50/200 day MA golden cross.

MoneyAM
"Silver producer Fresnillo saw full year revenue rise 6.9% to $839.6m.

The firm's silver procution in the year to the end of December was a record 34.8 million ounces and it also produced 264,000 ounces of gold.

Operating profit increased 26.3% to $283.6m and earnings before interest, taxes, depreciation and amortisation rose 21.7% to $337.4m.

Looking ahead at 2009, the firm said it recognised that it would be affected by the same factors as the industry as a whole and its focus will be on critical capex and intermediate and advanced exploration projects, ensuring that its short- to medium-term targets are met. "

Any idea how their figures stack up against others in the sector?

Solid CP, very solid but the problem I see here is the transfer over to HOC.

With the drop in SP today and HOC becoming dearer we may at sometime see a reversal back to FRES.

One to watch out for I reckon.

LONDON (Reuters) - London-listed Mexican miner Fresnillo (FRES.L) posted a worse-than-expected 10.8 percent fall in 2008 attributable profit, hit by foreign exchange losses and higher taxes, and said 2009 output would be mostly flat.

Shares in Fresnillo, the world's biggest primary silver producer, fell 5.6 percent to 389.75 pence by 09:05 a.m. British time on Monday, compared with a 2.4 percent rise in the UK mining index .FTNMX1770.

The shares have jumped 70 percent so far this year on the back of a rebound in silver prices.

"Overall slightly disappointing numbers, with adjusted EPS coming in 23 percent below Cazenove estimates and even further below consensus, primarily due to a much higher than expected tax charge," Cazenove said in a note.

"Valuation and precious metal exposure continues to look supportive so we would buy into any weakness today."

Fresnillo, a unit of Mexico's Penoles (PENOLES.MX), said attributable net profit fell to $127.95 million from $143.5 million in 2007, while four analysts surveyed by Reuters Estimates had expected $241 million (166 million pounds).

The full-year result was in sharp contrast to a 56 percent jump in first-half profit, but Chief Financial Officer Mario Arreguin said sharp devaluations of both the British pound and the Mexican peso late in the year impacted the bottom line.

Frenillo posted a foreign exchange loss of $14.6 million while tax charges jumped 53 percent.

VOLATILE PRICES
The silver price also took a dive in the second half, tumbling by half from a peak in March to a low in October.

Spot silver has since rebounded by a quarter to trade at $14.18 per ounce on Monday, but Fresnillo Chief Executive Jaime Lomelin said he expected prices would probably stagnate this year.
"Whilst we remain positive on the long-term evolution of precious metals prices, we expect the global slowdown to reduce overall demand for precious metals in 2009," the firm said.

Fresnillo said on January 14 that it planned to trim capital expenditure this year by about 8 percent due to weak markets and Lomelin said there had been no change to the plans.

A strong balance sheet with $212 million in cash and no debt meant the firm had scope for acquisitions, but it planned to focus on developing its own projects, he added.

"Our objective first is to consolidate districts. We're not interested in buying properties that are far away from where we are operating, that would dilute our exploration efforts," he told a conference call.

He said the company would press on with its $179 million cash bid for the 80.2 percent of MAG Silver (MAG.TO) (MVG.A) it does not already own.

Lomelin said he expected Canadian regulators to seek a restart of a valuation process after MAG, which has deemed the offer too low, suspended it.

Fresnillo boosted 2008 attributable silver production by 1 percent to 34.8 million ounces while gold output fell 5.7 percent to 264,000 ounces.

Output in 2009 at its biggest mine, Fresnillo, and Cienega would be unchanged while the smallest operation, Herradura, had potential for slightly higher production, the firm said.

Fresnillo, which listed on the London Stock Exchange last May, proposed a final dividend of 7.7 cents a share."

Currency and tax going against it.

I withdraw my initial take on the stock.

Still compared to non metals this is a glowing performance.......blush.

How conflicting the results between Reuters above and MoneyAM below... who is right???



Fresnillo full year revenues up 6.9% - MoneyAM


Silver producer Fresnillo saw full year revenue rise 6.9% to $839.6m.

The firm's silver production in the year to the end of December was a record 34.8 million ounces and it also produced 264,000 ounces of gold.

Operating profit increased 26.3% to $283.6m and earnings before interest, taxes, depreciation and amortisation rose 21.7% to $337.4m.

Looking ahead at 2009, the firm said it recognised that it would be affected by the same factors as the industry as a whole and its focus will be on critical capex and intermediate and advanced exploration projects, ensuring that its short- to medium-term targets are met.

Tricky to predict the immediate future for FRES as strengthening silver & gold prices might be offset by the declining mexican currency & stock prices:
"The peso declined 0.5 percent to 14.8564 per U.S. dollar, from 14.7774 on 20th Feb. At the end of last week it touched a record low of 14.9855.

Mexican stocks also tumbled. The Bolsa Index fell 1.1 percent to 18,125.39, extending its decline to 19 percent this year.

Mexicos currency has tumbled 32 percent over the past six months, the second-worst performance against the dollar among the worlds major currencies after the Brazilian real, as a deepening recession in the U.S. dries up dollar flows from exports, remittances, tourism and foreign direct investment.(Bloomberg)"

I think it's time to SELL Fresnillo again.

Yes, you may be right. Are you shorting it?

More info to digest:

"t1ps.com stocks reporting
Featured Stock: Fresnillo (FRES)

David Miranda of the AIM & PLUS Newsletter writes: Fresnillo has seen its shares rocket by more than 300% since November in what has been a remarkable recovery drive, spurred on by buoyant silver and gold prices. The precious metals miner recorded silver production of 34.8 million ounces in 2008, and gold production of 263,600 ounces. The company said it expects production levels for 2009 to be in-line with those of 2008, whilst it makes further investments in operating efficiencies coupled with ongoing cost control initiatives to help protect margins. At 416.5p, Fresnillo is trading on an estimated 2009 P/E of 20, which is at a premium to the gold sector average. Despite the bullish outlook for gold and silver, this looks to be a pretty full rating for a company that is predicted to report narrowed profits on flat production in the current year. On the other hand, it could be argued the high multiple is justified by Fresnillos exploration upside and exposure to spot silver prices.

Zak writes: The chart of Fresnillo is one of the most stunning on the LSE at the moment. The current position here is that we are looking at a stock which has just delivered a massive U shaped recovery and a golden moving average cross between the blue 50 day and black 200 day lines. The assumption now is that while above the green 10 day moving average at 390p the shares could return to their all time high of 575p. "

Yes, I'm shorting it. Tips.com is wrong, zak has written a lot of crap lately.

"BROKER NEWS - MoneyAM - Fresnillo upgraded to buy from hold at Investec, target price raised to 388p from 369p"

At the moment though,heading in the wrong direction

About turn,up 55 points ,but the whole sector has done much the same.

H98..... you are either out ot burnt to toast????.

Come on dont be shy which one is it?.

Dont forget Hlyeo this happens to us all at times.

As long as the winners are bigger than the losers theres no probs.

regards Gf.

Interesting point on FRES here and we should see buying ahead of the potential move to the FTSE 100....

05.03.09 :-10, (360) Platinum miner Lonmin, silver miner Fresnillo and oil services firm Petrofac are set to make a swift return to the FTSE 100 when the quarterly indexes reshuffle is unveiled next week. The three commodity-focused firms were among five companies -- the other two being Stagecoach and John Wood Group -- demoted from the blue chip index after the last review in December 2008. Bourse operator London Stock Exchange, private equity firm 3i Group, and plumbing supplies firm Wolseley are the likely candidates for demotion from the benchmark, according to analysts. FTSE International announces the changes to the FTSE UK index series after the market close on Wednesday, March 11. The review will be based on closing share prices from Tuesday, March 10, but the changes have to be confirmed by a FTSE committee on Wednesday. Companies outside the FTSE 100 that grow to rank among the 90 largest by market capitalisation are automatically promoted, while the FTSE 100 firms with the lowest value or that fall to 111th spot or below drop into the FTSE Midcap 250 index. With the mining and oils-related sectors remaining in focus, Lonmin, Fresnillo, and Petrofac have proved resilient enough to bounce straight back to bluechip status. Lonmin shares have recovered well since their expulsion in September, adding around 66 percent since early December as platinum prices rose, helped by sector consolidation hopes. Lonmin last year fought off a 5 billion pound ($7.07 billion) hostile takeover approach from Xstrata, but with the predator still holding a 24.9 percent stake in Lonmin, investors have been betting that a fresh bid is still likely. Firmer silver prices have helped Mexico-focused Fresnillo to rebound over 157 percent from its December 2008 levels, while Petrofac has been a beneficiary of a steadier oil price, gaining around 40 percent since its demotion from the blue chip index. London Stock Exchange shares have taken a tumble over the past quarter, down 27 percent as the equity markets collapse has continued, with the bourse also under intensified competition from new trading platforms such as Turquoise and Chi-X. The appointment of a new chief executive by the LSE last month only provided a temporary halt to the slide. Former Lehman Brothers banker Xavier Rolet is set to take over from Clara Furse on May 20. 3i Group has been on the slide as talk of a possible rights issue to shore up its balance sheet has dogged it. It has lost over 45 percent during the three months since December. The firm has unsuccessfully attempted to scotch the cash-call rumours and recently raised around 60 million pounds via the disposal of a 6.8 percent holding in its listed 3i Infrastructure business. Wolseley has also suffered on cash-call concerns, with the firm widely expected to launch a 1 billion pound rights issue, possibly as early as this week, in an attempt to get to grips with its 3 billion pound debt burden. The plumbing firm, shares in which have shed over 42 percent in the past three months, is also expected to unveil significant write-downs at its loss-making retail division, Stock, which is heavily exposed to the moribund U.S. housing market. The index changes will be implemented at the start of business on Monday March 23.

MoneyAM
"Silver and gold producer Fresnillo expects no material economic impact after a strike at the Met-Mex metallurgical complex.

Penoles said on Friday it had declared force majeure at the MetMex refinery after a five-week strike over pay paralysed work.

Fresnillo said: "As a result of the declaration of force majeure we will switch to alternative arrangements that we have begun to put in place with other smelters and refineries.

"This will include the dorand precipitates produced at the Herradura and Ciega mines as well as the lead concentrates from the Ciega and Fresnillo mines"."

One after hours buy of nearly 3.5 million shares.

"Fresnillo plc, the world's largest primary silver producer and
Mexico's second largest gold producer, is pleased to announce that it
has successfully concluded the 2009 annual wage negotiations with the
section of Mexico's Mining and Metal Workers Union at the Herradura
mine. The Union and the Company have agreed on a package that
includes a 6% wage increase, a 1% fringe benefits increase and a one
payment as a bonus of 1% of salary. Negotiations with each of the
sections of the Union at the Fresnillo and the Ci�nega mines will
commence over the coming weeks as these are negotiated separately.

The successful outcome demonstrates the good relationship between the
Union at the Herradura mine and Fresnillo plc."

Fresnillo silver production up 9%
MoneyAM
Silver production at mining group Fresnillo rose by 9% i the first quarter of this year to 9.2m ounces.

And the firm said gold production of 65,000 ounces was in line with its budget.

It added that construction at Soledad-Dipolos was progressing well and production was expected in the first quarter of 2010 while the drilling programme and construction activities at Saucito remain on track

What is needed next,is a rise in the price of silver

New article, click HERE

Business Financial Newswire
"Silver and gold producer Fresnillo has successfully concluded the pay talks with Mexico's Mining and Metal Workers' Union at the Ciega mine.

The union and the company have agreed to the same conditions as with the Herradura and Fresnillo mine workers.

Fresnillo has now concluded all wage negotiations with the Unions at all its mines for the year 2009. "

A very impressive looking chart to say the least! From 100 to 600 plus in 6 months .Are their any better performers in the entire market.

Business Financial Newswire
"Fresnillo said attributable silver production reached record levels in 2008; silver resources increased to 1.1 billion ounces from 837 million ounces, and gold resources reached 12.0 million ounces from 9.5 million ounces. EBITDA rose 21% in the year.

The company said EBITDA rose 21% in the year, while operating profit increased by 13.4% to $267m.

Net profit was $152m, which resulted in earnings per share of 18.6 cents, enabling a final dividend of 7.7 cents per share.

Fresnillo said it had a strong start to 2009, with silver production up 9% on last year and stable gold production. In US dollar terms, costs are declining compared to last year due to a higher exchange rate, lower input costs and our ongoing cost control programme.

'This year we are expecting the ongoing operational efficiencies at our mines to result in a slightly higher level of silver and gold production than that achieved in 2008', the group said.

Over the year, Fresnillo invested $800,000 in its sustainability programmes. "

Now up 700% in 6 months! How far can it go!

From the Blue Index blog

Solid Silver Service
May 27th, 2009

Its no secret that miners have for the most part enjoyed a strong recovery in 2009. Silver miner Fresnillo (FRES) in particular has produced one of those terrific top right hand corner charts that look so good in annual reports and presentations :)

For the time being at least that looks set to continue, after Fresnillo reported a strong start to 2009, with silver production up 9% on last year and stable gold production. Chairman Alberto Bailles said the companys costs were declining in US dollar terms compared to last year, due to a higher exchange rate, lower input costs and the companys ongoing cost control programme. He added he expected that ongoing operational efficiencies at our mines will result in a slightly higher level of silver and gold production than that achieved in 2008″, and reiterated the fundamentals of Fresnillo are strong.

Full transcript here
http://blog.blueindex.co.uk/2009/05/solid-silver-service/

Business Financial Newswire
"Silver miner Fresnillo has withdrawn its offer for MAG Silver because it is "no longer in the best interests of Fresnillo shareholders".

Fresnillo made its offer at the beginning of December but it says that even after this protracted period of time, it has not been possible to conclude the independent valuation of MAG required under applicable Canadian securities laws in order to permit the offer to proceed.

It adds: "Fresnillo considers that the document production order as issued by the OSC will require significant time, effort and money to be expended, without knowing even at this time - after more than 200 days since the offer was announced - whether a valuation will ever be received or the offer can ever be made.

"These risks to the successful completion of the transaction have resulted in Fresnillo's decision to withdraw its offer for MAG immediately.

"Despite the withdrawal of the offer, Fresnillo remains committed to the growth of the company, and our growth objectives remain intact." "

Just shorted FRES at 445p... graph looking desirable for a shorting.

The mining stocks are certainly getting hammered at the moment and Fresnillo is off its' high of 720+ by some 280 points. The outlook is good however in the long run according to many "experts"
Myself, I was wondering about getting back in,but not just yet.

Just goes to show that being elevated to the FTSE100 doesn't always mean solid support for the sp. Will be interesting to see if they can maintain their position next time round.

Certainly a healthy recovery (up 28) this morning.
It could be that the shake out in the mining sector is over,given the strong rebound today

No, it's not over. The worst is yet to come.

Gold Poised for Second Weekly Drop as Dollar Gain Cuts Demand
Share | Email | Print | A A A

By Glenys Sim

July 10 (Bloomberg) -- Gold traded little changed in Asia, headed for a second weekly decline after falling to a two-month low this week as the dollar rallied, curbing demand for the metal as a hedge against accelerating consumer prices.

Bullion is down 1.4 percent this month as the dollar advanced 0.5 percent against the euro in the same period. Gold slid to $905.10 an ounce July 8, the lowest since May 6.

In the near term, day to day moves continue to be influenced by the direction the dollar takes, Lin Haoxiang, analyst at Guotai Junan Securities, said from Shanghai today. In the longer term, inflationary expectations remain.

Gold for immediate delivery traded at $913.72 an ounce at 2:31 p.m. in Singapore, down 2 percent this week. August delivery futures on the Comex division of the New York Mercantile Exchange were down 0.4 percent at $913.

Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at 1,109.81 metric tons as of yesterday, according to figures on its Web site.

The dollar was at $1.3964 per euro from $1.4020 late yesterday, tempering a rebound in commodities. A stronger U.S. currency cuts demand for raw materials priced in dollars.

Crude oil yesterday rebounded from a seven-week low, pacing an advance in commodities, after reports showed initial U.S. jobless claims dropped to the lowest since January and equities gained. The contract for August delivery was down 40 cents at $60 a barrel at 2:39 p.m. in Singapore.

Among other precious metals for immediate delivery, silver and platinum were little changed at $12.865 an ounce and $1,112.10 an ounce respectively, and palladium was up 1 percent at $237 an ounce.

To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

Last Updated: July 10, 2009 03:10 EDT

now up about 75 points in less than a week,
hope the shorters didn't lose their shirt! Hey, that rhymes,I'm a poet and didn't know it.

2nd qtr production update due 16th July.

Board approves pre- feasibility study for first stage of Saucito project
Fresnillo plc is pleased to announce that the Board has approved the pre-feasibility study for the development of the first stage of Saucito project, in the Fresnillo region. The Saucito project is located approximately eight kilometres southwest of the Fresnillo mine and it aims to be another world class silver mine. The pre-feasibility study considers a 3,000 tonnes per day operation starting in 2011. The expected annual production at full capacity will be approximately 9 million ounces of silver and 45,000 ounces of gold. The first stage of the project only considers ore from the Saucito and Jarillas veins and does not include ore from the Mezquite, Madro, Santa Natalia and Valdecas East and West veins in the region as they need to be further explored. The estimated initial investment will be US$309 million with a sustaining capital of US$68 million over the life of the mine."

Business Financial Newswire
"Silver miner Fresnillo today reported first-half attributable net profit of $121m, down 14.1%.

Realised silver price in the period was $13.92 per oz, down 21.9%.

Fresnillo said it was hit by the weakness of the Mexican peso in relation to the US dollar.

Revenue fell 10.7% to $378.9m, while adjusted revenue of $426m was down 13.7%.

Total EBITDA was down 4.1% at $203.4m, down 4.1%, while EBITDA margin was up to 53.7% from 50%.

Cash generated by operations before changes in working capital was $234.3m, down 7.2%.

Earnings per share was 16.9 US cents and the interim dividend was set at 5.25 US cents per share.

Fresnillo said it had record attributable silver production of 18.8 million ounces in the half-year and silver volumes sold increased by 4.7% while gold volumes sold remained flat. "

Fresnillo starting to look tasty from a TA view. All that glitters is ......silver.

Should be looking to take recent high of 750p out over next few months?.

Business Financial Newswire
"Fresnillo started with buy rating at Numis, price target 915p"

Nice comment and analysis! Click HERE

What a fantastic stock this one has been too. Up some 800% in the last year.
Wow. Correction, only 700%!

Business Financial Newswire
"Fresnillo's 56%-owned joint venture Minera Penmont has submitted a binding proposal to acquire Canplats Resources Corporation at C$4.40 per share.

Canplats shareholders would receive C$4.20 in cash and a share in a new exploration company with a notional value of C$0.20.

The proposal by Minera Penmont follows the announcement in November that Canplats had entered into an acquisition agreement with Goldcorp Inc.

Fresnillo said Canplats had disclosed that its board had determined the proposed agreement with Penmont was a "superior proposal".

Goldcorp has a period of five business days expiring on Thursday, 31 December to offer to amend the terms of its agreement.

Newmont Mining holds the other 44% of Minera Penmont. "

Business Financial Newswire
Silver miner Fresnillo said today total revenue was up 18% to $850m in the year ended December 2009, with net attributable profit up 150% to $322m.

The average realised gold price was $988.9 per ounce and silver price $15.3 per ounce in the period.

EBITDA increased by 47% to $497m and earnings per share were 44.9 cents.

The group had net cash at the end of the period of $312m and no bank debt.

Fresnillo reported record attributable silver production of 37.9 million ounces, up 9%, with attributable gold production of 276,584 ounces, up 5%.

CEO, Jaime Lomelin, said: "I am pleased to report a strong set of financial results after a year of significant operational progress. We have achieved record attributable silver production, the completion of development works and the start up of operations at Soledad-Dipolos, advances at the Saucito project, substantial increase in total resources, and mineralisation extended at all exploration prospects. We enter 2010 with a strong cash position and no debt on the balance sheet and on track to achieve our aim of delivering one new mine or mine expansion per year until 2014."

Business Financial Newswire
"Silver miner Fresnillo reported attributable silver production of 9.5 million ounces in the quarter to end-March 2010, up 3% when compared to the first quarter of 2009, excluding the Sabinas Silverstream.

Quarterly attributable gold production increased by 31.5% over the same period last year to a record level of 85,097 ounces.

Soledad-Dipolos commercial production began in January 2010, with 11,226 attributable gold ounces.

The Saucito shaft has successfully started operations which will speed up the mine development.

The company said cost reduction efforts and efficiency initiatives are continuing. "

"Following its meeting on 28 April 2010, the Board of Directors of Fresnillo plc has declared a final dividend of 16.2 US cents per ordinary share in the Company for the year ended 31 December 2009. The final dividend will be paid on 2 June 2010 to shareholders in the register of members on 14 May 2010."

Harrycat
Any news of that takeover ?

Dead in the water I'm afraid:
"Earlier this year Canplats Resources Corp CPQ.V agreed to be acquired by Goldcorp (G.TO) for C$280 million ($272 million) after a bidding war drove Goldcorp's original offer up from C$238 million".


Wed 12/05/2010 - Fresnillo Plc goes Ex-dividend (0.162 USD) .

Rumour of a bid coming for FRES at maybe 12.

StockMarketWire.com
"Fresnillo's silver production hit record levels in the second quarter and the first half of the year to the end of June at 9.6moz and 19.1moz respectively.

And the firm said quarterly attributable gold production achieved a new record at 91,254 ounces - an increase of 33.9% over the corresponding period last year.

It said attributable gold production at Soledad and Dipolos continued ramping-up to 16,298 ounces.

And it said construction of the Saucito development project and the expansion of Ciega's milling capacity were on schedule. "

StockMarketWire.com
Gold and silver miner Fresnillo reported revenue of $605.7m for the half-year to end-June, up 59.9%. Gross profit was $401.5m, up 82.4%, and EPS was up 82.2%.

Interim dividend increases 75.2% to 9.2 cents.

The average realised silver price was $17.93 per oz, up 28.8% and the average realised gold price was $1,171.9 per oz, up 27.4%.

The group reported adjusted Revenue of $636.3m, up 49.4%.

EBITDA was up 92.7% to $392m and EBITDA margins increased to 64.7%.

Cash generated by operations before changes in working capital was $419.9m, up 79.2%.

Fresnillo had first half record attributable silver production of 19.1 million ounces and record attributable gold production of 176,351 ounces, up 32.7%.

The grou said it is on track to achieve full year production targets of 38moz of silver and 340,000oz of gold.

StockMarketWire.com
Fresnillo downgraded to hold from buy at Citigroup, target cut to 1190p; from 1225p.

"Further to the interim announcement of half year results released on 3 August 2010, the directors of Fresnillo plc have determined that the exchange rate to be applied to the 2010 interim dividend is 1.5508US$/GB. The sterling equivalent of the dividend of 9.20 cents per share announced at the time of the interim announcement will be 5.932422 pence per share.

The interim dividend will be paid on 14 September 2010 to shareholders on the
register on 20 August 2010."

StockMarketWire.com
Fresnillo upgraded to neutral from underweight at JP Morgan

StockMarketWire.com
Fresnillo said this morning that silver production of 10.69m oz reached a new record level in the quarter to end-September with gold output up 44.% on last year.

The world's largest primary silver producer and Mexico's second largest gold producer reported quarterly silver production of 10.69m oz reached a new record level (including 0.82m oz of the Silverstream).

There was record quarterly attributable gold production of 91,822 ounces, a 44.4% increase over the corresponding period last year.

Fresnillo said it was on track to achieve 2010 production target of 340,000oz attributable gold and of 41.1moz of silver (including 3.0 m oz of the Silverstream).

Construction of the Saucito development project is on schedule for start up in 1H 2011 and expansion of Ciega's milling capacity is progressing according to schedule.

The miner said cost control measures and efficiency initiatives remain firmly on track.

Sp more than doubled in 12 months. Just a matter now of trying to decide when the gold & silver price has reached it's zenith?

StockMarketWire.com
Mexican precious metals miner Fresnillo reported today that adjusted revenue was up 56.1% to $1.473bn for the full-year 2010. EBITDA was up 90.3% to $945m.

EBITDA margin increased to 67%, from 58.4% in 2009.

Cost controls and efficiency measures enabled Fresnillo to remain in the lowest quartile of the cost curve.

Operating profit was up 94.4% to $833.4m. Profit attributable to equity shareholders, excluding the Silverstream revaluation effects was up 72.3% to $530.8m (post Silverstream revaluation, up 106.6% to $665.5m).

Adjusted EPS was up 72.1% to $0.740 per share, EPS up 106.5% to $0.927 per share.

A final dividend of 35.6 US cents per ordinary share wll be paid.

Fresnillo said it has a robust balance sheet with no debt and a strong cash position up 79.2% to $559.5m.

The year saw record attributable silver production of 38.6 million ounces, up 1.7%, and record attributable gold production of 368,995 ounces, up 33.4%.

Discovery of new ore shoot at Saucito, added over 76 million ounces of silver and 300,000 ounces of gold to resources.

Fresnillo said it is on track to produce 65 million ounces of silver and over 400,000 ounces of gold annually by 2018.

Production Report for the three months ended 31 March 2011

Overview
Record gold production for a 1st quarter, up 13.3% to 96,407 ounces compared to 1Q 2010.

Quarterly attributable silver production of 10.1 million ounces, including the Silverstream, decreased by 2.2% when compared to 1Q 2010.

Saucito commissioned on 21st February with first commercial production on 1st April.

Soledad-Dipolos expansion to produce 130,000 total gold ounces per year concluded over the quarter

The sinking of the San Carlos shaft at the Fresnillo mine is expected to be concluded by 2H 2011.

The expansion of Ciega's milling capacity from 755,000 to 930,000 tonnes per year will be concluded in 2Q 2011 and the sinking of the shaft to become operational in 2H 2011.

If only I had held on to my original investment from 2009 at 700p!!! :o(

If only I had bought some in May! ;o)

Talk about contrarian - I bet GF is glad he is out of his short!

StockMarketWire.com
Mining giant Fresnillo trimmed its silver production target for the year as output slipped in the third quarter.

Year to date attributable silver production decreased 0.3% and quarterly production decreased 5.8% year-on-year due as the group moved to reinforce safety conditions. It expects to return to normal operations by the end of October.

The group is lowering its guidance for 2011 silver production from 44 to 41 million ounces accordingly.

However, the group is also revising its total gold production upwards from 400 thousand ounces to 430 thousand ounces for the full year due to ongoing ramp-up at its Saucito and Soledad-Dipolos projects.

Construction of Noche Buena gold project remains on schedule to start-up in the first half of next year.

StockMarketWire.com
Fresnillo's attributable gold production rose to 448,866 ounces in 2011 - 22% up on the previous year and exceeding its target of 430,000 oz.

Fresnillo said this was mainly due to better than expected volume ramp-up and recovery rates at Soledad-Dipolos and increased ore processed at Herradura.

Quarterly attributable silver production of 10.3m oz and annual silver production of 41.9m oz was ahead of the 41m oz guidance, but remained at similar levels to 2010.

It said the start-up of its Saucito mine was offset by lower than expected silver ore grade at its Fresnillo mine.

Stan - well done if you bought these in December!

I did thanks.. but sold only 2 days later for a quickie profit. I was going away on holiday so didn't want to be in to much over the break.

StockMarketWire.com
Fresnillo revenues rose 56% to $$2,307.5m in 2011 after record attributable gold production of 448.9 koz.

This was due to ramp-up at Soledad-Dipolos and higher throughput at Herradura.

Silver production was stable at 41.87Moz (including Silverstream) and benefited from the start-up of Saucito.

Earnings before interest, tax, depreciation and amortisation rose by 62.8% to $1,538.5m and profits before interest and tax were up 39% at $1,038.6m.

Chief executive Jaime Lomelín said: "We delivered exceptional financial performance in 2011 on the back of strong precious metal prices and record gold production. EBITDA was up 63% to $1.5bn with EBITDA margin for the year increasing to over 70% and EPS up 36% despite cost pressures.

"We are delighted to declare a final dividend of 40 US cents per share bringing our total dividend for the year to 103 US cents per share.

"We also made significant progress towards our long-term goals, with development projects on track, significant expansion of the resource base, and a robust pipeline of growth projects.

"We are now a significant gold producer in our own right and have increased our 2018 target to produce 500,000 ounces per year.

"However, we are disappointed with our safety performance as 2011 saw a reversal of our strong track record.

"A comprehensive review of our safety and health programme was undertaken, and we will continue to implement rigorous initiatives to achieve our zero fatality target.

"For 2012, the economic outlook may be uncertain, but our commitment to continuous investment in exploration, productivity improvements, bringing a new mine or expansion on line every year for the next five years, cost controls and the enhanced safety culture remains unchanged, supporting long-term value creation for all stakeholders."

StockMarketWire.com
Mexican gold and silver miner Fresnillo said quarterly attributable gold production was above expectations in Q1 with an increase of 26.3% to 121,792 ounces.

Noche Buena commenced its first commercial gold production within time and budget in March.

Quarterly attributable silver production was 9.8 million ounces, including the Silverstream, on target with a small decrease of 2.9% when compared with 1Q 2011.

Construction of the dynamic leaching plant at Herradura remains on track to become operational in 2013.

Good progress of exploration programme and development workings at San Julián, Orisyvo and Centauro Deep.

Entered into an association agreement with Canadian listed miner, Orex Minerals to explore and develop as one large project each company's adjacent mineral concessions in Coneto, Durango.

Jaime Lomelín, CEO, said: 'The strong operational performance that Fresnillo enjoyed in 2011 has continued into 2012. We have delivered another strong quarter of production with gold beating our expectations, up more than 26%, and silver production in line. As operators, we continually manage and adjust our operations to ensure our production profile is optimised to extract the maximum value from our portfolio. In the case of our gold production, we optimised our mine plan in order to take advantage of the high gold prices.

'The highlight of the quarter has been the completion and commissioning of our new gold mine at Noche Buena in the Herradura district. We are particularly pleased that this was accomplished on time and within budget. Commercial production began in March and the mine will produce around 42,000 attributable ounces of gold per year once it reaches its full capacity which we expect to occur by the end of this year. This will significantly increase the proportion of gold production within our portfolio. We believe this is another strong example of the company delivering on its growth ambitions and represents a step forward to consolidate Fresnillo's position as a significant gold producer in its own right.

StockMarketWire.com
Precious metals group Fresnillo has revealed a 'promising' prefeasibility study on the Juanicipio property in Mexico.

The study - which was completed by AMC Mining Consultants (Canada) Ltd - anticipates a 15-year mine life with an average annual payable production of approximately 10.3 million ounces of silver and 29,200 ounces of gold at a cash cost of $6.61 per ounce of silver equivalent.

The after-tax net present value would be $1.2bn at a 5% discount rate, according to the AMC study.

The after-tax net present value does not take into account the cost of the mandatory profit sharing to employees (MPSE) under Mexican federal labour law, which Fresnillo complies with at its Mexican operations.

The MPSE is required to be paid at a rate equivalent to 10% over income subject to profit sharing (taxable income adjusted for certain items).

MPSE is deductible for income tax purposes.

Fresnillo said: "While the results of the AMC study are promising, as anticipated by us, it constitutes a preliminary study that, by definition, is preliminary in nature and, among other things, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

"The estimates produced in the study have a level of accuracy in the order of +/- 25%.

"There can therefore be no certainty that the results reflected in the AMC study will be realised."

The study was received by Minera Juanicipio SA de CV - Fresnillo's 56%-owned joint venture with MAG Silver Corp.

StockMarketWire.com
Fresnillo's gold output rose to a record 127,003 ounces in the second quarter while silver production was up on the previous three months.

Fresnillo's said gold output - which was 15% higher than a year ago and 4% up on the first quarter - is on track to meet its full year target of 460,000 ounces.

Chief executive Jaime Lomelín said: "The new Noche Buena gold mine and continued solid performance at Cienega, together with higher ore grade at Saucito, contributed to a record level of quarterly and half yearly gold production.

"For silver, the ramp-up at Saucito will continue over the second half of this year.

"Together with the higher ore grades from Cienega, this will compensate for the expected lower output from the Fresnillo mine due to lower ore grades.

"As a result, total production for the year will be similar to that achieved in 2011.

"We are confident that we will achieve our full year production target of 41 million ounces of silver, including silverstream, this year."

A 1% divi in the offing for next Tues with these maybe worth a go.

Trading update http://www.moneyam.com/action/news/showArticle?id=4464568

Fresnillo is a leading precious metals explorer. The company's assets include the world's largest silver mine, after which the company is named.

As you may have expected, the precious-metals boom has enriched Fresnillo shareholders. In the last five years, the shares are up almost three-fold.

Recent production figures from the company impressed the market, with Fresnillo reporting record gold production in the year to date. The company also assured the market that its own production targets for the full year would be met.

Resources companies, such as Fresnillo, are a geared play on the price of the commodity they produce. As such, an improved outlook for mineral and metal prices will often result in earnings upgrades for miners.

Policy developments in the US and the eurozone have provided some support for precious-metal prices. In the last three months, the price of silver has increased 27% while gold is up 9%.

The benefit to Fresnillo investors is clear. The shares have advanced 36% in the last three months.

StockMarketWire.com
Fresnillo's board has approved the feasibility study for the development of the $500m San Julián silver project.

San Julián is 100% owned by Fresnillo and is a key project in reaching the company's goal to produce 65 million ounces of silver and 500,000 ounces of gold per year by 2018.

The San Julián project comprises a series of silver-gold veins as well as disseminated ore and management remains confident that it has sufficient geological potential to become a new mining district in the future.

The pre-feasibility study envisages the construction of two plants: i) a flotation plant with a capacity of 6,000 tpd to process ore from the disseminated body

ii) a dynamic leaching plant to treat 3,000 tpd of ore from the veins. The expected production levels for the first year of operation are approximately 5.7 million ounces of silver and 1,300 ounces of gold, gradually ramping-up to an average of 9.6 million ounces of silver and 40,000 ounces of gold per year, once at full capacity

The capital cost of the project is estimated at $500m with commercial production expected in the second half of 2014.

Cash costs are expected to be in the first quartile of the international cash cost curve, and the updated resources include 21.8 million tonnes in the disseminated body with an average grade of 147 g/t of silver and 11.8 million tonnes in the vein system with average grades of 131 g/t of silver and 1.56 g/t of gold.

StockMarketWire.com
UBS has downgraded its recommendation on silver and gold mining company Fesnillo (LON:FRES) to "neutral" from "buy" after the recent share price appreciation. The City broker has left its share price target unchanged at 2,100 pence. Broker Forecasts consensus data highlights that nearly 60 per cent of brokers have a neutral or hold rating on the stock while 33 per cent recommend buying and 8 per cent recommend selling. Analyst Chris Lichtenheldt said: "We are downgrading Fresnillo from buy to neutral as a result of recent share price appreciation. Since September 10, 2012, Fresnillo is up 7% versus silver down 9% and our average silver stock under coverage down 2%. We believe this outperformance was driven by increased investor appetite for high-quality assets (which Fresnillo offers). Despite the downgrade, we continue to believe Fresnillo shares offer attractive exposure if silver and gold prices move higher. Fresnillo holds a well-diversified portfolio of high-quality silver and gold assets."

StockMarketWire.com
Fresnillo reports record annual attributable gold production of 473,034 ounces for 2012.

This is up 5.4% year on year and exceeds the full-year target of 460,000 ounces.

The company says this was mainly due to the successful first year of operations at Noche Buena and continuous ramp-up at Saucito.

Annual attributable silver production was 41Moz, (including 4.0Moz from the Silverstream), which was in line with guidance.

Fresnillo said the ramp-up at Saucito offset the anticipated natural decrease in silver ore grade at the Fresnillo mine.

Taken a bit of a slapping today, but recovering to only 2.5% down now.

Financial results for the year ended 31 December 2012

Fresnillo plc today announced the financial results for the full year to 31 December 2012 and Octavio Alvídrez, CEO said:

"Our performance over a year of volatile silver prices has illustrated how strong our business model is. Operationally we met our guidance for 2012 and we are pleased that EBITDA margins have remained amongst the strongest in the industry at 60%. Our model is structured to deliver a balance between growth and returns, and our track record of delivering profitable growth, investing in our future and returning cash to shareholders, has continued over the year under review.

We are focused on low cost, high return operations and continue to invest throughout the cycles to ensure the sustainability of our business. Looking ahead, we are excited about the strength of the growth pipeline, and the four exploration projects we have highlighted today illustrate some of the many opportunities for future growth."

2012 Highlights

Maintaining operational excellence
· Record gold and stable silver production reflect positive impact of project delivery and debottlenecking mining district consolidation
· Focus on efficiency gains and cost control reinforce company position in lower quartile of production cost curve
· Noche Buena brought on stream on time and on budget

Managing the portfolio to maximise value
· Short-term mine plans adopted to reflect a changing metal price environment
· We reacted to the anticipated declining grades at Fresnillo by increasing ore volumes and ramping-up production from Saucito.
· Initiated new production at Noche Buena and increased ore volume processed at Ciénega and Herradura
· Margins lower but remain best in class

Focus on capital discipline
· Capital is allocated in a disciplined manner based on low cost and high return projects that follow our strategy of consolidating districts
· Construction commenced at San Julián silver mine
· US$318.9m capital invested in exploration in 2012 which resulted in a double digit increase in both resources and reserves
· US$434.7m in CAPEX mainly invested in new projects with high rates of return.

http://www.moneyam.com/action/news/showArticle?id=4553084

StockMarketWire.com
Deutsche Bank has downgraded its recommendation on Fresnillo (LON:FRES) to "sell" from "hold" in a research note to investors on Tuesday, March 19th. The City broker has lowered its price target on the gold and silver miner to 1,300 pence per share from 1,705 pence. Broker Forecasts consensus data shows that 36 per cent of brokers now have a "sell" recommendation on the stock versus 18 per cent which rate the shares as a "buy".

"Fresnillo remains a good company, with quality management and high margin assets. However, we think the stock is already pricing in a near perfect delivery of their medium-term growth prospects. Furthermore the stock is also pricing in a recovery in metal prices from current levels, and whilst we remain constructive on both gold and silver, the combination of perfect delivery and rising prices means the risk-reward is skewed to the downside in our view. Near-term headwinds of flattish production over the near term, the likely introduction of a Mexican Royalty and an equity issuance to meet free float requirements, means the premium versus peers could shrink. Sell.
Our price target of £13.0/share is based on c.1.40x NAV, which is a premium to peers due to the company’s track record for delivery, but is at the bottom end of the company’s recent trading history given the headwinds facing the company over the next year. Our NAV is based on life-of-mine cash flows, using a long-term gold price of US$1025/oz and a silver price of US$17.00, and a WACC of 6.4%. The key risks on the upside are higher silver and gold prices compared to our expectations. The imposition of a Mexican royalty tax in 2014, as we have in our numbers, may be delayed once more."

Looks like 1300p should be good support from the charts. Since getting out at 2000p I have been watching these and will buy back if they drop to near 1300p.

Decided to buy a few of these for the longer term, now on support levels from before 2011. Had considered POG with a similar yield, but it has been in decline since 2011 while Fres has been up and down a few times since then and is more volatile (maybe better gains) if things start going right for precious metals. Not very scientific but seems to fit into the buy low, sell high strategy. Also looking at LSIL for a leveraged play on silver, although it may be a bit too early to go long yet. Any views? H

RBC note today:
"Our View: We believe that Fresnillo's low cost production, strongest balance sheet in the industry, capital return and project delivery record make it the best defensive pick in the falling gold price environment. Upgrading to Outperform.
Guidance confirmed, production in line - Fresnillo produced 10.1 Moz of silver (inclusive of Silverstream) and 117 koz of gold, which was broadly in line with our expectations of 10 Moz of silver and 122 koz of gold. Silver production increased 3% from Q1 2012, while gold production was down 3% from the same period. The company reiterated its 2013 annual guidance of 41 Moz of silver and 490 koz of gold.
Lowest cost producer, balance sheet strength, CAPEX flexibility - Based on our estimates Fresnillo's sustaining all-in cash costs are US$900/ oz of gold equivalent on average in 2012-2015E. This, combined with one of the strongest balance sheets in the industry (US$612m at end of FY2012), and ability to defer and optimize its project pipeline make Fresnillo best insulated in the falling metal price environment.
Our target price of £18.00 (unchanged) reflects a 50:50 blend of 1.5x P/NAV (unchanged) and 14.0x P/CF (unchanged), on our 2014 estimates. Fresnillo has historically traded at a premium to other peer silver producers, reflecting a significant growth profile and a history of operating outperformance."

Thanks Harry, the RBC note reflects and adds to my basic reseach. My longer term turned out to be only half a morning, got out with a 10% loss but only had a few. If this hangs around the 1100p mark for a few days, I will probably have another go at a longer term holding. H

Going Ex Divi paying a rather nice 27.8p, but with commodities not flavour of the month the SP recovery time is uncertain. Anyone going for the Divi here at all?

SP up straight away. Would have been a very short term profitable trade.. Oh well.

Fresnillo plc ("Fresnillo" or the "Company") announces that it has agreed to issue 19,633,430 new ordinary shares of US$0.50 each (the "Placing Shares") representing approximately 2.74 per cent. of the number of existing shares of the Company (the "Placing") to funds and accounts managed by First Eagle Investment Management LLC (the "Placees") who are existing shareholders in the Company.

The Placing will ensure that Fresnillo plc is compliant with changes to the Ground Rules of the FTSE UK Index Series that require constituents to maintain a minimum free float of 25% or more.

The proceeds of the Placing will be used for general corporate purposes and the Company's working capital needs.

The Placees have agreed to subscribe for the Placing Shares at a price of £11.30 per Placing Share, a 1.99% discount to the closing price at Friday 26th of April.

Up another couple of %

I think Fres has a lot more chance of recovery than POG. Although the chart still looks pretty poor, relatively it has outperformed POG over the past year and has a 4% yield. Have added a little more to my modest position in Fres. Still nowhere clear that a bottom is in, waiting for gold to get to around $1150 before adding again.

Interims out today. http://www.moneyam.com/action/news/showArticle?id=4645582

RBC note today on the expected extra tax to be levied:
"Negative outcome relative to our expectation – We had previously expected a 5% EBITDA based royalty with a small per hectare fee for explorers. The proposed tax appears to be a 0.5% revenue based royalty and a 7.5% EBITDA royalty. In aggregate we believe that this will likely be equivalent to a 4.5% to 5% revenue based royalty based on Fresnillo’s cost structure. The government may also introduce a 10% tax on the distribution of profits to shareholders outside of Mexico. Fresnillo’s management have indicated that they believe that the tax is likely to be finalized by the end of October in time for inclusion in the country’s 2014 budget. The proposed legislation would need to pass through both the Chamber of Deputies and Senate. At present most of the major parties in Mexico appear to support the new royalty aside from the right of centre National Action Party, (PAN).
The impact of the new royalty system would be negative for FRES and we have adjusted our numbers to reflect its likely impact. Our NAV has declined from 978p to 907p and we have also pulled back our 2014E and 2015E EPS to 70cps and 87cps cps from 75cps and 93cps respectively. We retain our Sector Perform rating but pull back our target price from 1300p to 1200p on unchanged multiples of 1.5x P/NAV and 14.0x P/CF, on our 2014 estimates. Fresnillo has historically traded at a premium to other peer silver producers reflecting a significant growth profile and a history of operating outperformance. Over the short term the shares could benefit from the results of the GDX reweighting, which should be announced on Friday 13th September."

Big faller here.

500p support.

Still no support.

Another new low.

StockMarketWire.com
Fresnillo's pre-tax profits tumbled by 64.4% in the year to the end of December to $418.7m.

Fresnillo says its results were hit by a combination of lower precious metals prices, the lower gold production which arose from the legal dispute surrounding explosives permits at the Minera Penmont operations, and the non-cash loss generated by the Silverstream revaluation.

It says that as a result, revenues fell by 25.1% to $1,615.2m and earnings before interest, tax, depreciation and amortisation fell by 44.5% to $729.8m. Chief executive Octavio Alvídrez said: "Fresnillo continued to deliver on its strategic priorities in 2013, despite a challenging external environment for the mining industry and disrupted operations at Minera Penmont. We achieved silver production that was ahead of our targets and made significant progress on a number of our development projects, with the dynamic leaching plant at Herradura being concluded and construction continuing at Saucito II and San Julian.

"Gold production declined as a result of the legal proceedings which halted operations at Soledad-Dipolos and, triggered the suspension of the use of explosives at Herradura. This, combined with lower precious metals prices, impacted our financial results. Nevertheless, our cost reduction initiatives, extensive exploration efforts and focus on operational excellence means we remain well placed to continue to create value for our stakeholders through the cycle as evidenced by today's recommendation of the special dividend. We look forward to making further progress towards our long-term goals in 2014."

Cazenove note today:
"P&L below forecast: reported revenue of $1,615m was 1% below JPMe due to higher than expected TC/RCs. EBITDA of $730m came in 7% below JPMe due to higher than expected costs, primarily at Herradura due to the disruption caused by the suspension of its explosives permit. Working down the P&L, higher than expected D&A and tax expenses were offset by lower than expected minority interests and SilverStream revaluation effects, leaving reported EPS of 32.9 UScps, 8% below JPMe and 9% below company-compiled consensus. Underlying EPS of 38.1 UScps, excluding SilverStream, was, however, 19% below JPMe and 21% below consensus.
Cashflow performance solid: operating cashflow of $452m (including net interest) came in 13% below of our forecast, but was offset by lower than anticipated capex of $572m vs JPMe of $688m, implying better than expected free cash flow of c. -$120.0m vs JPMe of -$179.2m. Net cash of $415.5m was therefore higher than our $356.7m forecast, supporting FRES’ decision to pay a surprise $50.1m special dividend in addition to the $165m extraordinary dividend paid on 11th November and the interim dividend of $36.1m, and bringing the total DPS paid in respect of 2013 to 35.1 UScps vs JPMe 27.3 UScps.
Project update: the high-returning $235m Saucito II project “advanced rapidly as a result of efficient execution and infrastructure synergies”, with FRES now guiding to construction completion by end 2014 vs mid-2015 previously. However, start-up of the San Julian project has been delayed by ~12 months from Q4 2014 to H2 2015 as the company now plans to build a reservoir to complement ground water supplies. The total capex for the project has also increased marginally to $515m vs $500m previously.
Outlook: 2014 production guidance of 43Moz silver (including SilverStream) and 450koz gold is unchanged vs the targets given at Q4 production results, with last week’s receipt of a new explosives permit at Herradura allowing the company to re-confirm its targets. No specific has been set at $225m (JPMe $222m) including $30m capitalized exploration expenditures, while capex guidance has been set at $642m, including capitalized exploration, vs JPMe of $816m, reflecting the deferral of the San Julian development. Operating cost targets have been given with the company expecting “continued cost pressures, mainly in energy, operating materials and labour” offset by ongoing cost control initiatives."

Silver price seems to be now be recovering. Gold price is stable / slow.

FRES could now be on recovery path with explosives available and if mines at high production again.

I am in FRES at 803p and very hopeful of easy pickings - does anyone have comments ?

Credit Suisse note:
"We believe Fresnillo went through a rough patch on its operations during the last twelve months mainly in the back adjusting ore grades and Penmont flaws, but we expect it to recover. We think that ore grades will stabilize in current levels, and expect Herradura to be fully reestablished on 2H14. What could drive our view to a more positive stance? Higher grades in Fresnillo, or an acceleration of the Centauro Deep project. How would we become more cautious? Deteriorating ore grades, and a delay in projects.
After a strong investment cycle, Fresnillo is getting to the sweet spot of growth delivery, we estimate the surge of cash flows by 2016. We believe that there will be a significant improvement in operations, mainly coming from Saucito II cumulative production. This mine is a rising star, and has become the key of Fresnillo's growth story, we expect it to contribute 52% of silver production in 2014.
We are upgrading Fresnillo to Neutral, with a TP of GBp 900 and 4% downside. We think that the storm is over, though still, the company is trading at a 35% 2014 EV/Ebitda premium to peers, and 1.2x NPV."

IC SAY BUY

From I C today;

Weak gold price hits Fresnillo
Production outages and the sharp fall-away in precious metals prices from April 2013 onwards made for unflattering half-year comparatives for Fresnillo (FRES). But the Mexican miner still declared a special dividend and signalled it was on track to meet full-year guidance.
Operating profits halved to $183m (£108m), while cash flows were down by a third to $337m – which is still pretty healthy by most standards. The profit drop was partly due to temporary disruptions at the Herradura mine after the government imposed a ban on the use of explosives. This ban has now been lifted, and gold production at Herradura was up by a third in the second quarter compared with the first. But the disruption meant that Fresnillo’s total gold output fell by 18.9 per cent to 191,317 ounces.
The good news is half-year silver output was marginally higher, at 21.3m ounces, while costs shrank thanks to lower exploration charges. Two major expansion projects – Saucito II and San Julian – remain on track and on budget.
However, Fresnillo is a commodity play, so double-digit falls in average prices for silver and gold were always going to have an overriding impact on these results. In the event, the fall in net earnings was less severe than that in underlying profits due to the revaluation of the miner’s Silverstream complex.
UBS anticipates 2014 EPS of 31¢, rising to 36¢ in 2015.
B We anticipate a stronger second half in terms of production, but full-year comparatives will still look anaemic. Fresnillo’s habit of returning capital to shareholders means we still like its shares despite a lofty multiple. MR
Buy

FRES

As per remarks on the chart......

Starting to tuck more of these away.

Yes, it's a bit of a long term investment and am still trying to get my head around the likely direction of the price of silver. I assume that once QE starts and interest rates start to climb then gold will drift off, but no idea about silver. Tempted to do likewise and buy for the long term.

http://www.kitco.com/LFgif/ag0365nys.gif

I've also topped on on silver ETF this week. With the volume of industrial/commercial uses and supply dropping, there could be a lot of upside. But then I tend to think gold is going to continue rising long term.

StockMarketWire.com
Fresnillo has signed a binding agreement to acquire Newmont Mining's 44% interest in the Penmont joint venture for a total cash consideration of US$450m.

This comprises the Herradura, Noche Buena and Soledad Dipolos mines, the Mega Centauro and Centauro Deep advanced exploration projects and a number of key exploration prospects.

Fresnillo currently holds a 56% interest in the JV.

The acquisition is conditional on Fresnillo shareholder approval.

Chief executive Octavio Alvídrez said:"The acquisition of the Penmont assets from our JV partner Newmont would see Fresnillo assume control of a quality portfolio of assets which would significantly enhance our gold production and be central to our growth.

"Acquiring full control of the Penmont assets would enable us to both maximise the value of current producing mines which we have extensive experience in operating, and unlock further long-term value from Herradura as a highly prospective region where we have a strong track record of exploration success. We are excited by the exploration potential that it represents, with three of our key exploration projects in the Herradura Corridor, and a variety of additional targets already being drilled.

"Acquiring full control of the Herradura and Noche Buena mines and the key exploration assets in the JV should enable us, with our current operatio

From Interactive Investor

FRES Fresnillo.On the verge of a breakout into a bullish resistance wall which could see the SP hit 980p pretty quickly, EMA golden x on chart aswel.

Depends on wether silver and gold to a lesser extent can maintain there present levels and not fall through support.

FRES Fresnillo from John Burford iii 12/01/2015

Update - Fresnillo

I featured this very interesting share on 8 December with this chart updated on 29 December:

I show a lovely textbook five down to sub-700p and then a large wedge (see text, pp 33-38, 71-80, 152) in formation. This had all the appearance of a basing operation. I reckoned that if the market could break above the upper green line that would set the seal for a vigorous rally.
Another factor in support of my bullish forecast was the extremely bearish market sentiment towards gold/silver. Most pundits expect the PMs to decline with a commonly-held target for gold to sub-$1,000. I had the exact opposite view.
Now, just last week, the market broke up with gold out of the wedge on strength:

This now sets up my probable Elliott wave roadmap. If my labels are correct, we are in a third wave up - and these are generally long and strong. My first target is just above at the 850 area (the Fibonacci 50% level), but much higher targets beckon.
Another charting target based on the wedge thickness at the left hand edge is the 900 area.

As I wrote in December, this share holds great potential for appreciation over the next few months.

Now what gf? Down 5%. Will it retry the DMA or more downside?
My simplistic chart seems to indicate more downside to come (RSI & MACD)

Think he got a wedgy harry........ so much for charting.,.

post 124 refers back to "research" done in early december, so it was all rather misleading and out of date

It came from iii on monday.

And your wrong READ the article..........

"I featured this very interesting share on 8 December with this chart updated on 29 December:"

All the mining sector is down today......and a lot more than this % wise.

SILVER hasnt fallen through support..........Bet still on.

the primary target was 850 which was not greatly above yesterday's level
anyway, it's not one for me

You still have read it wrong. Look at the chart from the 29th and exclude today........

do you get it now?.

Silver is a fair way from the floor.

1 day doesnt make a winter.

Your right about the mining sector GF, KAZ has taken a big hit...... another mistake.,.

Yup KAZ down nearly 20 % bit steep don't you think .

VED also down badly.

20% in a day...... jeez.

These markets this january are so volatile .

Last year we had a brill January from my trading diary bar the first week when the big boys were back from xmas and new year break, window dressing.

Bet it will change when Draggy announces QE for EC on 23rd?

sticks - i don't argue you with you on these things, but at the moment, the stock indices are an easier way of making money, for the very reason that everything is so volatile

Good point. Volatility is an indicies mans best freind.

Strange that Shortie is appearing though quite often on other threads.

Just out on Twitter.

TimesBusiness ‏@TimesBusiness 9 minutes ago
Court rules Draghi can push ahead with QE plan @DavidCharter
http://www.thetimes.co.uk/tto/business/economics/article4322906.ece …

The Times of London
View this content on thetimes's website
European Court rules Draghi can push ahead with eurozone QE
By The Times of London @thetimes
A massive programme of bond-buying by the European Central Bank was given the green light this morning, paving the way for it to spend hundreds of billions of euros to fight deflation. Government bond

Nice reversal on the SP. Still down but no where near the mining sector.

In fact right on the break up resistance line.

Nice opportunity for fans to climb aboard.

Moving up nicely, breakout confirmed now.

Part of the Numis note today:
"We revise our recommendations and target prices on the back of our new commodity price forecasts. Our ongoing caution on the mining sector appears well founded as price plunges continue unabated. 2015 looks set for another year of pain as a headwind of weak prices bite into company profits, despite some saving grace from lower oil and other input costs. As we highlighted in our last sector piece, downgrades, cost cuts, dividends and asset revaluations are likely to be atheme through this year as miners struggle to operate in a lower price environment.

On a longer term view, there is value to be had by sticking to quality names and avoiding risk, perceived or otherwise. We continue to recommend a more defensive stance with Acacia, Fresnillo and Petra our picks.

● Growth, Quality & Management. We stick with our defensive criteria; we move Acacia to a pick, replacing a fully-valued Randgold, a quality company which still has to prove its stripes, but has potential for high reward. The share price has been strong and looks overbought at these levels but we see plenty of room to deliver. Alongside Fresnillo and Petra, these all have superior growth profiles to counteract flat to falling commodity prices, high quality assets to weather any downturn and strong management to deliver on business plans. We have no copper pick given price headwinds, limited growth and short term challenges. Berkeley and Highfield are our favoured juniors, with quality projects in excellent jurisdictions and recovering commodities. Many other covered stocks have attractive investment opportunities but in subdued commodities which are struggling to see a positive price response.

Harry excelent broker note, do you subscribe to money ams broker site ?

From tuesday....... just found this on advfn.....

Motley Fool today > With profit having fallen over the last couple of years and its share price being 52% lower than three years ago, it's been a tough period for Fresnillo (LSE: FRES). Still, its shares continue to trade on a very rich multiple of 31 and, looking ahead to its growth forecasts, they seem to be worth it.
That's because Fresnillo is expected to increase its bottom line by 51% in the current year, followed by 34% next year. Part of the reason for this is its ultra-low cost base that, as the largest silver producer in the world, allows it to maintain relatively high levels of production while many of its rivals struggle to turn a profit.
As such, its bottom line looks set to benefit and, with a PEG ratio of just 0.6, investors in the company could benefit from a higher share price moving forward, too.

Nope. I just trawl around for info. I find most info is available without paying for it!

I hold Acacia aswel, but HOC is well worth a look especially the chart.

cheers Harry.

Yesterdays Guardian.......

Randgold and Fresnillo rise as gold and silver benefit from Swiss move

Investors seeks havens as Swiss decision to remove euro peg causes market havok.

The shock move by the Swiss Bank to end the currency peg against the euro has sent the euro tumbling, put markets under pressure and sent investors scurrying for havens for their cash.

So inevitably gold is benefiting, rising 2% to a 12 week high of $1259 an ounce while silver is up from $16.8 to $17.1.

Michael Hewson at CMC Markets said:

The ripple out effect of [the Swiss move] is likely to be hard to quantify, and we could well get a lot more volatility as investors and markets in general try and work out what this sudden change in policy means for future central bank promises going forward, but it seems likely that the US dollar could well benefit, as well as gold, as investors look again at the more traditional havens.

This morning’s moves also highlight how fragile financial markets still are nearly six years after the financial crisis despite trillions of dollars of central bank largesse and the risk is that markets start to lose faith in these new masters of the universe as investors look at central bank promises with large dollops of scepticism.

The gold and silver move has also benefited precious metal miners, with Randgold Resources rising to the top of the FTSE 100, up 215p to £51.65. Mexican miner Fresnillo is close behind, 28p better at 844p.

Overall the FTSE 100 is currently down 39.31 points at 6349.15, having trading in a 172 point range in a volatile morning.

The Swiss stock market, meanwhile, is now down 11% and on course for its worst daily performance on record.

Warming up now.

Great hedge against stocks going down.

Bought HOC on the pull back this morning.

FRES Fresnillo.Looking for 960p-980p on the chart. Resistance incline looks moderate and EMAs catching up with 200EMA

Gold through 1270 resistance level.

This is getting interesting.

Already in profit with HOC.

https://www.bullionvault.com/gold-price-chart.do

Good site that BB, cheers Ill save it to favs.

Been a corker for gold and silver today.

London’s leading gold forecaster: gold to average $1321 in 2015
By Tom Winnifrith | Saturday 17 January 2015

Over the past 15 years Ross Norman of Sharps Pixley has been the forecaster with the best record in the LBMA for predicting gold price moves so you should take his gold price forecasts seriously. Ross writes, "We are going out on a limb this year." Indeed.

AVERAGE : $1321

HIGH : $1450

LOW : $1170

If markets move on what you don't know today, but will know tomorrow then it follows that many factors such as a US interest rate rises should already be factored into the current price... it also begs the question what the new drivers for 2015 will be. We see ongoing declines in economic growth prompting central banks to fight deflation by resorting to inflationary pressures in H2.

If our outlook for gold in dollar terms is bullish, in emerging currencies it may be even more so as investors seek to insure or hedge against currency debasement. As such, we foresee good demand for the physical.

Most annoyingly for bulls in 2014, gold exhibited 'rally fade' despite a global economy that was as fragile as ever. Our forecast is predicated on gold becoming price inelastic (as it was in the early 2000's) and able to sustain the momentum. I say annoyingly because arguably never before have savers potentially so needed an asset with the wealth preservation qualities that gold provides ... yet the price performance these last few years has disappointed.

In short, we see gold demonstrating that it has turned a corner and investor flows return with a vengeance, aided by short covering and fresh longs in the futures markets. Perhaps most disappointingly though we are unlikely to see runaway prices beyond the $1450 level without either significant new product innovations or without the sort of black swan events in the economy that few of us would wish for.

SILVER

AVERAGE : $18.56

HIGH : $21.75

LOW : $14.50

With a firm outlook for gold, it follows that our expectations for silver would be similar ... and a little more so... such is silver's propensity to follow gold in a exaggerated fashion. Investors will take comfort from

silver ETF holdings which have remained firm (unlike gold) coupled with retail sales of the physical coins and bars which have remained robust.

Even mine production looks set for a modest decline back to levels last seen in 1999. With 75% of silver being produced as a by-product of base metals mining, the weaker global economy may well prompt some cut-backs in mining those host metals. Equally, demand from industrial applications will be correspondingly weaker, but investors (... or more likely speculators) are normally on hand to fill the void.

Like gold, silver does seem to struggle to sustain momentum to the upside as it experiences 'rally fade' for this reason we do not see the likelihood of runaway prices just yet.

Gold miners are starting to look good again – but expect a rough ride

By: Dominic Frisby
14/01/2015

http://moneyweek.com/gold-miners-look-good-again-but-expect-a-rough-ride/

CHARLES STANLEY BROKERS

Commodities

Gold (1279.81) – the surge in the gold price continues, aided by the Swiss currency move
(the Swiss are widely seen as buyers of the precious metal) and by its safe-haven
characteristics. Last week’s 4.66% advance is notable for the fact that it resulted in a clear
move above the long-term downtrend and the extent of the break has changed the basis
somewhat, to the extent that further strength now appears to be a realistic expectation
(notwithstanding the fact that the price has become somewhat overbought of late). The next
upside target is last August’s intermediate high, at $1313 or so.

BMO Chief Economist Doug Porter warned that interest rates could move higher sooner rather than later in 2015. His 2015 outlook for gold is that it will trade, broadly speaking, where it is today. His assumption for next year is $1,190 per ounce. If the market perceives inflation is becoming a concern, it would be constructive for the gold price. (source)

Erica Rannestad, senior analyst, precious metals demand, Thomson Reuters GFMS, agreed that gold prices will likely be lower in the first half of the year because of the Fed’s expected action, which she called “the top driver” for gold-price direction. She said gold prices will likely consolidate in 2015, and lists and a 2015 average price $1,175, with prices trending higher in the second half of the year. (source)

Rob Haworth, senior investment strategist, U.S. Bank Wealth Management, said the following: “Looming Federal Reserve interest rate increases in the second half of 2015 and the stronger U.S. dollar will keep pressure on gold prices through the year. The gold market could see rallies if demand improves for physical gold, but weaker growth in much of the world will temper such prospects.” (source)

TD Securities said gold prices in the first half of 2015 could also find pressure from the slow growth in China and Europe, along with the sharp drop in crude oil prices, which is disinflationary. “Less inflation tends to lift real rates and reduce demand from investors, who buy gold and silver as a hedge. Lack of investable petrodollars, after the recent oil price collapse, also negatively hit demand for real assets and may lift Treasury yields just as the Fed will no longer be there to pick up the slack now that it ended its QE-inspired asset purchase program.” (source)

Citi Research estimates the average price for gold at $1,220 in 2015.

TD Securities lists its average 2015 gold price at $1,225.

Natixis forecast gold at $1,140.

JP Morgan revised its gold price forecast 4% lower to $1,220 per ounce, citing lower inflation, reduced inflation expectations, higher US interest rates and a stronger US dollar. “While seasonal, physical buying emerged in Asian markets in September after a drop in price, many headwinds strengthened at the same time. The Asian gold consumer – a major supportive factor last year – proved to be very price sensitive and has been unwilling to step into the market at prices above $1,260. Gold investors, in both Western and Asian countries, have also been largely absent from the market for the majority of this year.” (source)

In an interview with Mineweby, S&P credit analyst Jarrett Bilous said: “We have a relatively stable gold price at $1,200 through 2015-16, and that incorporates our expectation for relatively modest US inflation below 2% through 2016. But we also believe that gold prices will remain particularly susceptible to shifts toward higher US interest rate expectations and a stronger US dollar. We are not forecasting a gold price below $1,200, but there’s certainly the potential that prices could weaken given that, at $1,200 per ounce, the price of gold is close to 50% higher than it was in 2008 when the US started cutting interest rates to support the US financial system. We are expecting at that price, gold will remain highly volatile. It is certainly possible that gold will drop below $1,100. But below that level there’s a lot of capacity in the industry that would not be profitable and would be generating negative free cash flow. So it’s questionable how long certain mines would remain open if prices were to remain consistently below that level.”

Fresnillo : *UBS CUTS FRESNILLO PRICE TARGET TO 950 PENCE - 'BUY'


more or less in line with my Chart target.

Looks like post 153 is a load of nonsense.

Loads errrrrrr money doodlemug.

23 Jan 2015 Fresnillo PLC FRES JP Morgan Cazenove Overweight 893.25 915.00 1,110.00 1,190.00 Retains

SP TARGET 1190p

and thats just for starters....

We all know how accurate brokers are......

Yep but you have to take them all and if all have a positive rating then its worth taking note.

Market Outlook The market ran out of steam and the traders are now more in agreement about the bearishness. The evidence is strong enough to prompt the closing of long positions. The bearish pattern that was previously identified is finally confirmed and a SELL signal is generated. You still have time to follow the signal and then you may start checking other securities for a bullish bet.

British Bulls

On the way back down to sub 700p ?

StockMarketWire.com
Fresnillo's full year silver production - including Silverstream - rose to 45.0 Moz - 4.9% up on 2013 and ahead of guidance of 43.0 Moz guidance. Fourth quarter output rose to 12.3 Moz up 15.5% on a year ago.

The 4.9% increase on 2013 was mainly a result of higher ore throughput at Saucito due to the additional material processed from the development activities at Saucito II, maintenance efficiencies at the original Saucito beneficiation plant, and an increase in the volume of ore processed at Ciénega.

A higher contribution from the Silverstream of 4.6 Moz, resulting from increased production at Sabinas (+17.8% vs. 2013) due to a higher recovery rate and a higher ore grade, also helped boost silver production.

These factors more than compensated for the expected lower ore grade at Fresnillo resulting from the natural decline in ore grades which was further affected by the higher dilution in some of the San Mateo and San Carlos stopes and delays in the preparation of certain stopes, as well as the lower than expected silver ore grade at Ciénega.

Quarterly silver production excluding the Silverstream increased 17.6% vs. 4Q13 as a result of increased ore processed and a higher ore grade at Saucito. However, this was partially offset by less ore being processed at Fresnillo and a lower ore grade at Ciénega resulting from the increased dilution at San Ramón. Similarly, quarterly silver production increased 11.6% when compared to the previous quarter as a result of higher ore processed and ore grade at Saucito.

Full year gold production comfortably met revised guidance of 590 koz, but decreased 2.4% on 2013, mainly as a result of the stoppage of operations at Soledad-Dipolos due to the court order regarding the Ejido "El Bajío" litigation process.

The expected lower ore grade at Ciénega due to the depletion of both higher gold ore grades and wider stopes also contributed to this decrease in gold production.

In addition, production was impacted by the heap leaching process remaining in ramp-up at Herradura. This affected the speed of recovery, the excess of suspended solids in solution resulting from the start-up of the new dynamic leaching plant (DLP), and the need to increase processing capacity at Herradura.

However, an increase in ore deposited at Noche Buena and a higher contribution from Saucito supported gold production levels.

Chief executive Octavio Alvídrez said: "I am pleased to report an increase of nearly five percent in silver production in 2014, to 45 million ounces, ahead of our guidance of 43 million ounces, reflecting higher ore throughput at Saucito and an increased contribution from the Silverstream. In gold, we comfortably met our revised production target following the acquisition of the Penmont minority from Newmont, producing 596 thousand ounces over the year.

"Within our growth project pipeline, I am very pleased to report that operations at Saucito II successfully commenced both on time and on budget in the fourth quarter, and we also saw the start-up of the dynamic leaching plant at Herradura. Looking to 2015, the construction of the leaching plant at San Julián continues, and we are on track to commence production in the fourth quarter.

"2014 was of course not without its challenges, in particular at our Fresnillo and Herradura mines, but we begin 2015 confident that we are taking the necessary actions to allow for increased production at the Herradura mine, and at Fresnillo we are expecting to see the benefits of the measures we have implemented in order to control dilution and improve contractor efficiency to deliver more stable production."

Excelent.

BRIEF – Fresnillo says FY silver production exceeds guidance
28 Jan 2015 - 07:11

Jan 28 (Reuters) – Fresnillo Plc

Full-year silver production (including Silverstream) of 45.0 mln ounces, up 4.9 pct versus. 2013 and ahead of 43.0 mln ounces guidance
Full-year attributable gold production of 596,000 ounces, in line with revised guidance of 590,000 ounces
4th qtr gold production of 173,000 ounces up 77.4 percent versus 4th qtr 2013 due to Herradura being fully operational
On track to reach 2018 production target of 65 mln ounces silver and 750,000 ounces gold
Sees 2015 silver production expected to be in range of 45-47 mln ounces including 3.5 mln ounces from Silverstream
Sees 2015 gold production expected to be in range of 670,000-685,000 ounces
2015 exploration budget of approximately $170 million
In 2015, average silver ore grade at Saucito is expected to be around 290 g/t
Source text for Eikon: ... Further company coverage: FRES.L

((Bengaluru Newsroom +91 806 749 1136);

29 Jan 2015 Fresnillo PLC FRES JP Morgan Cazenove Overweight 910.00 910.00 1,190.00 1,180.00 Retains

SP TARGET 1180p

Trading Update: http://www.moneyam.com/action/news/showArticle?id=4977012

Financial results for the year ended 31 December 2014

Fresnillo plc today announced financial results for the full year ended 31 December 2014. Octavio Alvídrez, CEO said:
"In 2014 we have delivered a reasonable performance considering the lower silver and gold prices that impacted the industry as a whole. This has again demonstrated that the quality of our assets, the strength of our balance sheet and our conservative approach to creating sustainable value places Fresnillo in a strong position amongst precious metals producers.

Our annual silver production of 45 million ounces was ahead of guidance and in gold we met our revised production guidance following the Penmont acquisition, producing 596 thousand ounces over the year.

2014 was of course not without its operational challenges, in particular at Fresnillo and Herradura. We are confident that the initiatives we put in place during the year at these mines will result in improved production in 2015. In addition, in 2014 we saw the start-up of the dynamic leaching plant at Herradura which will contribute to a decrease in cash costs at the mine, and we made excellent progress at our development projects in 2014, with the commissioning of Saucito II in December on time and on budget.

Furthermore, the acquisition of the 44% stake of Penmont further strengthened our position in the highly prospective Herradura district and allowed us to increase our 2018 gold production target from 500 thousand ounces to 750 thousand ounces. Our 2018 silver production target of 65 million ounces remains in place.

As we enter 2015, our focus will remain on delivering operational efficiencies, generating improvements in productivity, maintaining our cost position and margins in our current operation; as well as investing in growth projects. Our strong balance sheet will support our growth plans."


2014 Highlights
Maintaining operational excellence
· Record annual silver production (including Silverstream) of 45 Moz; up 4.9% vs. 2013 and ahead of 43.0 Moz guidance due mainly to increase in ore processed at Saucito and Silverstream contribution
· Annual gold production of 596 Koz in line with revised guidance post Penmont acquisition; a 2.4% decrease vs. 2013 due to the stoppage of operations at Soledad-Dipolos
· Silver grades at Fresnillo continued to decline but measures implemented to control dilution and improve contractor efficiency will deliver improved production in the second half 2015
· Technical and capacity issues associated with ramp-up of operations at Herradura impacted production, but mine expected to reach steady state in 2015 due to measures taken in 2014
· Ciénega mill capacity optimised resulting in an 8% increase in ore processed, partially offsetting expected lower gold ore grades
· Start-up of Herradura dynamic leaching plant in March 2014
· Production at Noche Buena ramped up and reached expanded capacity during 2014
· Maintained focus on cost control to retain position as a low cost producer
· Key safety indicators continued to improve in 2014

Delivering growth through the cycle
· Operations commenced at Saucito II on time and on budget; set to produce 8.4 Moz silver and 35 koz gold annually at full capacity
· San Julián on track to start production in 4Q15; expected average annual production of 10.3 Moz silver and 44 koz gold at full capacity
· US$450 million acquisition of 44% stake in Penmont to consolidate our position in one of Mexico's most prospective gold belts
· Extensive greenfield and brownfield exploration programmes continued to deliver positive results, most notably at Herradura, Orisyvo and Guanajuato
· 2014 exploration expenditure of US$184.5 million, delivered a 21.3% and 45.0% increase in silver and gold reserves despite lower price assumptions; gold resources grew 1.7% and silver resources declined 6.2% on exploration results

Delivering positive earnings and returns in a low price environment
· Adjusted revenue of US$1,545 million
· Gross profit and EBITDA of US$521.1 million and US$567.3 million
· Profit from continuing operations of US$245.6 million
· 2014 financial results impacted by higher adjusted production costs and adverse effects of non-cash exceptional items including foreign exchange loss and higher deferred taxes
· Basic and diluted EPS from continuing operations of US$0.147; adjusted EPS of US$0.074
· Strong balance sheet maintained; cash, cash equivalents and short-term investments of US$449.3 million at 31 December 2014
· 2014 final dividend of 3 US cents per share - equivalent to approximately US$22.1 million was recommended by the Board

Numis retains buy on Fresnillo, target raised from 900p to 1000p.

StockMarketWire.com
Fresnillo's silver production - including Silverstream - rose to 12.4 moz in the three months to the end of March, 18.9% up on a year ago.

The company said said this was due to increased ore volume processed and higher ore grade at Saucito, more than offsetting lower production at Fresnillo.

Quarterly gold production rose to 182 koz, up 62.4% on a year ago mainly due to Herradura being fully operational post the temporary explosives permit suspension which affected the comparator quarter, and the dynamic leaching plant at the mine now in operation, together with an increased contribution from Saucito.

Quarterly gold production was 4.9% on the previous three months, mainly reflecting the ramp-up at Herradura.

The companys ays it is on track to achieve 2015 production guidance of 45-47 moz silver, (including 3.5 moz from the Silverstream), and 670-685 koz gold.

Chief executive Octavio Alvídrez said: "We have had a strong start to 2015, producing over 12 million ounces of silver and 182 thousand ounces of gold in the quarter. We have improved development work at Fresnillo and started to see the results of the measures being taken to solve the challenges faced at Herradura.

"Silver production increased nearly 20% on the first quarter of 2014, boosted by higher production levels from Saucito as Saucito II ramps up successfully following its commissioning on time and on budget in late 2014 and we continue to make efficiency improvements. Gold production increased over 60% on the first quarter of 2014, with Herradura and its dynamic leaching plant fully operational.

"Looking ahead, we have seen continued progress at our San Julián development project, with stage 1 on schedule for commissioning in late 2015, and stage 2 to follow in 2016. I am confident that we remain on track to achieve our 2015 production guidance of 45-47 million ounces of silver and 670-685 thousand ounces of gold."

Looks like silver price may now have begun to recover, and gold, ( I do not know why )
.... - irrespective of dollar weakness /strength.
Plus FRES production now going well with higher silver and gold production target for the future.

Maybe a share to watch for impending recovery from recent lows towards past much higher share price = one to tuck away for the next twelve months.

Also a hedge against EU unpopularity, almost certain EU Greece exit, and unpopular actions such as spending cuts, tax rises, etc at the beginning of our new term of Conservative Govt.

Gold and silver not recovered and both seem to be weak. Silver price has still not found any long term strength. FRES revenue in dollars seems to be 50% gold and 50% silver therefore one can watch those commodity prices rather than the FTSE, or NMIX that I watch. When silver is not in what now seems over supply, we may see a sharply better share price.
However has been a good hedge against Grexit, as I said in May ( previous post ). Maybe worth buying a few today for about 700p for a short term recovery and sell in a week hopefully for 720 ?? Not much profit you may say, but use CFD's ( Contracts for Difference ) for low dealing costs and buying on margin. The fact that it is mining gold and silver I feel, gives it some "security" with cash in the ground, rather than more risky Co's - oil, etc etc
My last 12 consecutive deals, over about six weeks, have all been with FRES. I go both long and short, and I have made 12 consecutive profits predicting share movements mainly on the basis of comparing gold / silver price movements with FRES share price movements. Arn't I clever ? FRES also is a fairly volatile share, probably has degree of limited free market share quantity, so does make significant moves over most days, i.e. up or down say 1 - 2% or even more. A good share to put on your watch list, and to trade in and out of rather than to hold long term, perhaps.

Today gold down 0.21% silver down 1.09% FTSE up 0.22%, but FRES up 0.67% does not make much sense unless news is due ??

Production report due out any day for 3 months to 30 June 2015 - lets hope it is OK !!

Ugly looking Chart unless you have been fortunate to be short.

A bit of FRES buying happening today, against a weak FTSE100 and weak gold and silver prices. A good production report is due out any time soon, with new mines etc producing well on higher targets, but against known continuing weak commodity values. It is said to be one of the lowest cost producers, so should be cash generative.

StockMarketWire.com
Fresnillo has increased its full year gold output guidance after a 37% increase in first half production. Silver output guidance is unchanged.

Silver production totalled 11.3 moz (including Silverstream) in the three months to the end of June, up 2.7% vs. 2Q14 and first half silver production of 23.8 moz (including Silverstream), was up 10.6% on last year due to the increased production resulting from the start of operations at Saucito II offsetting lower production at Fresnillo.

Fresnillo said the reduction in silver production (including Silverstream) vs. 1Q15 reflected an unusually high ore grade at Saucito in 1Q15 and a decrease in ore grade at Fresnillo.

Qarterly gold production rose to 182 koz, up 16.8% vs. 2Q14, due to higher volumes of gold recovered which resulted from an increase in irrigation areas at Herradura and Noche Buena, increased ore deposited at Noche Buena and increased ore volume processed at Saucito.

First half gold production of 364 koz, up 37.0% vs. 1H14 mainly due to Herradura being fully operational post the temporary explosives permit suspension which affected 1H14 production, and the dynamic leaching plant at the mine being in operation for the full half post its start-up in March 2014, together with an increased contribution from Saucito and Noche Buena.

Chief executive Octavio Alvídrez said: "I am pleased to report strong first half production results, with nearly 24 million ounces of silver and 364 thousand ounces of gold produced across our mines and from the Silverstream.

"The increase in silver production was primarily driven by the ramp up of Saucito II, completed significantly ahead of the three year timeframe initially anticipated, and the increase in gold production by Herradura and its dynamic leaching plant being fully operational.

"We continue to advance development rates at Fresnillo, which should result in increased production by the year end, and we continue to see good results from the management actions taken at Herradura.

"Looking forward, as a result of operational progress we have raised our full year 2015 gold production guidance to 715-730 thousand ounces and we remain on track to meet our 2015 production guidance of 45-47 million ounces of silver."

Monday - FRES down about 4.25% as thay said US interest rates will move up next.
Tuesday - FRES up about 4% with interest rates forgotten and considered oversold
Wednesday - FRES down as gold and silver prices down so FRES down by about 4%
Thursaday - FRES up as Gold and Silver prices recover, so FRES up about 3%

I can not take the stress of this - for ufcks sake who is playing about

StockMarketWire.com
Fresnillo's first half profits fell by 44.3% to $76.4m with significantly lower realised commodity prices (silver US$16.61 per oz, down 18.0%; gold US$1,206.10 per oz, down 7.4%) impacting financial performance.

Silver production totalled 23.8 moz (including Silverstream), up 10.6% due to increased production resulting from the start of operations at Saucito II, which offset lower production at Fresnillo.

Gold production totalled 364 koz, up 37.0% mainly due to Herradura being fully operational post the temporary explosives permit suspension which affected 1H14 production, and the dynamic leaching plant at the mine being in operation for the full half year post its start-up in March 2014, together with increased contributions from Saucito and Noche Buena

Other highlights:
· Basic and diluted EPS US$10.4 cents per share, down 41.2%

· Cash generation from operations remains significant at US$314.9m, down 6.5%

· Strong balance sheet maintained - cash, cash equivalents and short term investments of US$475.7m

· Interim dividend of US$15.5m (2.1 US cents per share) declared reflecting Board's confidence in the Company's financial position and outlook; no change to previously stated policy

· Stage 1 of the San Julián project now expected to be commissioned in 1Q16 (vs. previous expectation of 4Q15). Pyrites project remains on track for production to commence in 2017

· Capital expenditure for the full year 2015 now expected to be in the region of US$570m (vs. previous expectation of c. US$700m)

· Positive drill results at Ciénega and Juanicipio projects will result in an increase in inferred resources

· 2015 gold production guidance raised to 715-730 koz from 670-685 koz (+6.6%); full year silver production remains on track (45-47 moz, including Silverstream)

Chief executive Octavio Alvídrez said: "We have had a solid first half operationally, with silver and gold production up 11% and 37% respectively. Saucito drove the increase in silver production, with the ramp up of Saucito II achieved well ahead of the three year timeframe initially anticipated. The increase in gold production was driven by Herradura and its dynamic leaching plant being fully operational throughout the period.

"We continue to advance development rates at Fresnillo, which should result in increased production by the year end, and we remain on track to reach steady state production at Herradura in the fourth quarter. I am confident that we are well-placed to meet our 2015 production guidance of 45-47 million ounces of silver (including the Silverstream) and our increased 2015 gold production guidance of 715-730 thousand ounces.

"We have made good progress at our near-term development projects in the first half. Although we experienced some delays at San Julián, we are confident that stage 1 of the project will be commissioned early next year, and our Pyrites project remains on track to commence operations in 2017.

"Our advanced exploration projects are all progressing according to plan, with good exploration results achieved at Juanicipio and Centauro Deep, and a preliminary economic assessment underway for Orisyvo.

"The pricing environment remains challenging, with ongoing precious metals price volatility. Our strategic objectives remain unchanged and we continue to take a long-term view, but we will also take into account the effect of market dynamics on our operating assumptions, if necessary deferring expenditures without compromising the profitable growth we continue to deliver, as evidenced by our reduced capital expenditure estimate for the full year 2015."

FRES income is 50% from gold - Gold price is subdued probably because of near term
anticipation of reversal and a hike in USA interest rates after falling and being held
down for a few years.

They say it is not beneficial to hold gold, a none income generating asset, when you
can get interest paid in bonds etc, therefore a fall in gold price would be
anticipated if USA interest rates rise.

However it may be that anticipation of the USA interest rate rise is holding gold back, and when it does happen, as expected soon, the gold price may almost certainly fall,
but some say that removing the anticipation and threat would have a positive influence and although gold price would drop it should soon recover.

So I am not too worried about a USA interest rate rise, and hope not to be in FRES when it is announced, but would hope to buy back FRES after the fall in gold price

If USA job figures are good on 4 September, i.e more in work, that would encourage the
FED to hike USA interest rates, with anticipated initial fall in gold price.
If bad jobs figures, then interest rates may be held at current rates a little longer,
and gold price may rise a little perhaps.
So expect some FRES volatility on friday perhaps, when jobs figures are announced.

Think silver price may follow gold price, although silver is a more useful metal, however has been in downward tend for several years now I think, and is it near a bottom yet ?.

it is china's antics and gyrations that are currently holding centre stage

Mr Cynic - I do not get you
I am not talking about China - I was not born yesterday.

I am writing about the possible imminent movements of the price of gold, and silver,
and how they may soon effect FRES share price.

It is said that the FED may increase interest rates before the year end, and if so,
this would probably have a detrimental effect on share prices generally.
So look at USA jobs report on 4th, as less USA unemployment may indicate a
possible USA rate hike sooner rather than later.
Could be about Sept 16-17, or Oct 28 - 29, or Dec 16 - 17, when FOMC meet.
I am essentially relaying some economics that I have read elsewhere.

China is another matter entirely.

Gold and silver commodity prices seem weak today - USA job figures out on friday
are forecast to be good, which may hasten a rise in USA interest rates later this year.
FRES down at today's close to six year low, as 2009 - I suggest you wait a few days
for more established / stable gold and silver prices.

rek - i know you follow FRES to the exclusion of all others .... my comment was much more broadly based

whatever the merits or otherwise of FRES, when markets collapse or gyrate wildly, the effects are indiscriminate with the good being chucked down the plughole with the more questionable

MrCynic -
Yes I agree with you, "the effects are indiscriminate" however -

As long as production is good ( we see quarterly production reports ),
one can see the commodity prices of gold and silver instantly as they change.
Fresnillo ( the major silver producer ) income is essentially 50% gold and
50% silver by value. If gold and silver prices are usefully up at any time
and FRES is down, I wonder why, and this indicates I should hold on for a turn.

Together with sight of the NMIX index ( top 350 excluding finance co's ), and
gold and silver prices, I feel one can better assess FRES on a minute by
minute basis, and I could not do this with say RR., Weir Group, or any
bank . You could argue that if the price of any commodity changed - oil, iron
ore, nickel, etc the same would apply, however Fresnillo is essentially almost
a pure gold and silver play. A lot of major miners have a larger mix of
resources and being larger are less sensitive to commodity price changes.

For me it is presently being a successful day trading option as my costs are low,
although I need to give my system a few more months trial. I was caught with
my trousers down when the China problem occurred, but with profits I should
be able to weather the occasional "falling knife" loss.

I welcome you discussion and further thoughts you have on this plan, as I am
still searching for the perfect system and holy grail.

Mr Cynic - at this very moment FTSE is up 1.34% and gold is down 0.96% and silver
down 0.43% - I am presently short FRES and waiting to buy back to close at a
profit again. I do not need to make thousands, only a few hundred quid a day.

If FTSE holds around, up 1.50 %, then I anticipate FRES should drop back to some extent by the close from present 609, as also up without much justification.

Sold at 611.5p just bought back at 607p todays trade - pity I could have bought back back a bit cheaper but became impatient. 5000 shares Profit for today £219.66.

That will do for today, bit cloudy plus I have a cold so no swimming today
- Bob - Benidorm Spain

Sod - was finished for today but now sold, gone short again, 5000 at 618, as gold down silver up net effect nil, but FRES up about 3.5% and I do not know why. I neede to buy back at anything below about 617.50p

i have no magic ...... i'm just a plonker who sometimes gets it right :-)

I remain short 5000 sold at 618, will hold overnight and see what happens tomorrow.
Current buy price 622 so not too far off making a profit if there is a fall tomorrow.

Some good news came out after I went short, so shares generally soared for some reason. Pity we do not get news as soon as the guys in the City do.

As both gold and silver commodity prices came down, also FRES followed them down
towards the close from about 634p - thank god.

The commodity prices helped me make my judgement again.

quite surprised you aren't at all tempted by other quality miners such as RIO or BLT on the basis that hard commodities will always be required and the current share prices are shot to pieces

And Kaz great trading stock .

hardly quality though :-)

If it goes up and down and you can trade in and out it's quality in my book !

jimmy b
I think you could follow copper prices and trade KAZ - as it is volatile

cynic.
I think RIO and BLT are too big and may be less volatile ?
Both FRES and KAZ have share prices a fraction of what they used to be, also the price of gold and silver

There must be many more Co's one could trade with an eye on commodity prices
besides FRES and KAZ. I only get an guide / indication from the commodity price,
and still have to use a lot of judgement whether I think it will go up or down.
So if I can avoid news and production reports etc and as long as the Co is sound
I do not worry too much about the Co, as it is essentially a trading play not a long
term hold. I do OK and seem to make many more profits than losses at present.

Bought back 5000 FRES and closed at 617 so was lucky to buy back without a loss

Kirk i have had a few trades on Kaz .
Watch it carefully there is often a good 10 points either way .

Thanks jimmy b I will -
I used to trade Antofagasta, but I just stick to the one share at the moment.

News on USA jobs out at 1.30 pm today so the price of gold and probably silver will
move then, because jobs affects USA interest rate decision in the coming months.
So I will be watching FRES at that time to possibly go long or short with CFD's.

I have an account with IG index which I do not use much now, but it is useful to see
many commodity and currency prices moving. Copper is on it also for KAZ.
Can you see moving commodity prices if so how ?

I use IG Index for most prices .

Bought FRES on friday afternoon after US jobs figures, at 602.80p, and now hoping
for a recovery in gold and silver prices,

Sold FRES 10,000 from Friday at 613p - now looking for next trade with FRES

KAZ did well again as well up nearly 11% at one point this morning .

jimmy b - thanks I will look into trading KAZ in relation to copper out of curiosity -

Wait for the next big leg down rekirkham ,iv'e had 3 very good trades with it ,however i do have one lot stuck at 2 quid.

question - just how bad will the chinese trade data be later this week?

jimmy - I shall not rush back in yet - Copper up almost 2% today ??

cynic - I did not know about Chinese data and will find out more

US dollar is down a lot for some reason - not sure how it will effect commodities,
so will have a cup of tea, then I guess I need to look at Bloomberg
or something

a little snip from IG ......

assurance provided by the Chinese authorities over the weekend suggests we may see better days ahead ....... when you hear that power usage, train freight and property markets are showing signs of improvement, domestic traders listen. This comes at a time when the central bank governor Zhou suggested the stock market sell-off was close to an end, while the CSRC (the regulator) also pledged to stabilise the stock market

=============

however, i believe there's "proper" trade data due to be published this week

I think China Trade Figures will be available at 3.00 AM tomorrow morning, Tuesday,
so will be out when London market opens.
That should be good, as no disturbance for us half way through our day.
I suppose it is forecast to be up or down, and I do not know what difference it makes to our markets.
I hope FRES drops tomorrow morning then I may take a gamble with it ?

personally i hope the figures are not so scary that they send the markets back into tailspin

Sold short FRES at 630p - reason I think gold and silver prices are not strong and may fall back - Hope I am right !

Bought back at 621p - was right about gold and silver

Bought 10,000 at 610p yesterday sold today at 617

Today sold short 10,000 at 615p just bought back at 609.75p

StockMarketWire.com
Fresnillo reports solid third quarter production figures with silver output of 11.04 moz (including Silverstream), in line with last year's 11.18 moz and 11.35 moz in the previous three months.

Year to date silver production of 34.8 moz (including Silverstream) increased 6.6% on the same period of 2014, with start-up of Saucito II and higher ore grade at Ciénega

Quarterly gold production totalled 182 koz, up 16.0% vs. 3Q14 due to an increase in gold recovery at Herradura, increased ore deposited at Noche Buena and a higher volume processed at Saucito.

Year to date gold production totalled 546 koz, up 29.2% on the corresponding period of 2014 mainly due to Herradura being fully operational post the temporary explosives permit suspension which affected 2014 production, and the dynamic leaching plant being fully operational post its start-up in March 2014.

Fresnillo says construction at San Julián continues with stage 1 on track for commissioning in 1H16; detailed engineering works continue at the Pyrites plant.

And it says encouraging exploration results were obtained at San Julián, Guanajuato, Fresnillo South and Juanicipio.

The group says it is on track to achieve its 2015 guidance of 45-47 moz silver (including Silverstream) and 715-730 koz gold.

It also said an accident occurred in early October at the Fresnillo mine resulting in one fatality.

Chief executive Octavio Alvídrez said: "I am pleased to report solid third quarter production figures. We have begun to see the results of the measures we have taken to solve the development delays at Fresnillo, with an improvement in both ore grade and production levels from the previous quarter at the mine. We have also made good progress in moving towards steady state at Herradura, and our San Julián project remains on track for stage 1 commissioning in the first half of next year.

"With this progress, we are on track to meet our 2015 production targets of 45-47 million ounces of silver and 715-730 thousand ounces of gold.

"However, I am saddened to report that one of our contractors suffered a fatal accident at our Fresnillo mine due to a breach of safety protocol. We are committed to a zero fatalities target and will continue strengthening our safety culture throughout the Company."

Talk about share volatility - WOW started today at about 670p, then down to 612 by 9.30 am ( about 8.65% ), then back up to 670p by 3.10pm and now in positive territory - who the hell is messing with these prices ???????
Mind you it is a volatile share and everybody is expecting gold to fall when US interest rates rise, ( except me ) but I think the US rate rise is already in the share price and I will be pleased to get it out of the way now.
Any price over 706p, my latest buy price will please me, as had a very bumpy ride with FRES over the last three or four weeks. Because of China and US interest rates. Next week may also see volatility with FRES , so I must tighten down my seat belt for even more mental torment guess.

News now out - A pipeline was ruptured and it was thought to be more serious than it in fact was - all now OK ande we can again sleep at night - thank god

Watching this very carefully with the price of gold under attack by shorters.

StockMarketWire.com
Fresnillo's full year silver production was at the top end of its guidance range, with 47 moz, a 4.4% increase on 2014.

This was mainly due to higher ore throughput at Saucito, more than offsetting the lower production at Fresnillo

Fourth quarter silver production increased 10.2% vs. 3Q15 due to higher ore grade and ore throughput at Saucito.

Full year gold production of 762 koz exceeded the revised gold production guidance of 715-730 koz, surpassing the 2018 gold production target of 750 koz; this was as a result of the dynamic leaching plant being fully operational following its start-up in March 2014 and Herradura being fully operational post the temporary explosives permit suspension which affected 2014 production.

Quarterly gold production increased 24.5% vs. 4Q14 mainly due to the start-up of the second Merrill Crowe plant at Herradura as well as higher overall average speed of recovery at the leaching pads. Increased volume of gold recovered, higher ore deposited and ore grade at Noche Buena also contributed to increase production.

Chief executive Octavio Alvadrez said: "I am pleased to report full year silver production at the top end of our guidance range, with 47 moz, a 4.4% increase on 2014. This was mainly driven by the ramp-up of Saucito II and a higher ore grade at Cianega, which more than offset lower production at Fresnillo.

"We continue to see the results of the measures we implemented to address the development delays at Fresnillo gradually come through, with grades and production levels increasing for a second consecutive quarter. The mine showed particular signs of improvement in the fourth quarter, and in 2016 I am confident of a turnaround, with a double digit increase in ore milled expected. In gold, production of 762 koz (+27.8%) not only exceeded our revised guidance of 715-730 koz (increased from 670-685 koz in July), but surpassed our long term 2018 target of 750 koz. This resulted from Herradura and its dynamic leaching plant being fully operational for the year, and achieving steady state as processing capacity increased following the installation of a second Merrill Crowe plant at the mine.

"In terms of our development pipeline, San Julian is on track for stage 1 commissioning in the second quarter of 2016 and stage 2 commissioning by year end, whilst detailed engineering works continue at the Pyrites plant. Looking ahead, we are expecting increases in both silver and gold production in 2016, with ranges of 49-51 moz and 775-790 koz respectively."

Incredable -
Good quarterly production report out today -
gold price steady / up a little being 50% in value of turnover,
silver price holding steady other 50% of turnover
Good forward looking production anticipated

Share now back to 2009 price, after touching £20 per share in 2011/12

Some say gold and silver have now bottomed out and over worst

Broker forecast yesterday target over £10 per share

Deutsche Bank today reaffirms its hold investment rating on Fresnillo PLC (LON:FRES) and cut its price target to 560p (from 570p).

Another gold miner benefiting from the stronger gold price.

sold short 10,000 this morning at 862.62 - but it went higher - sod
Hope it drops back somewhat -

kirky - you've been very quiet of late ..... hope you didn't get (too) burned on that short and that you are currently long

i see the results are out today, and certainly at first glance they don't look great, though of course it has been a year of pretty depressed precious metal prices

however, gold is currently on a roll which of course reflects in miners' prices

not surprisingly, sp has dipped today (sell on the news) but gold still holds at just below $1240

kirky's input might be useful! :-)

Got out of short some weeks ago at a loss. I have thought that FRES was overbought for a month or more. I have been struggling against rise in gold price and what I thought to be an excessive rise in FRES price.
A fall in FRES price today, as I expected, but I am not in market now and still nursung my recent loss. I still think FRES is now well overpriced but I seem to be struggling against the gold price bulls. May get in and short again as broker recommendations will be issued after Shareholders Meeting today. FRES still well overvalued at £980 I believe ( yield is now about 0.367 % ( can get 1.10% on cash in a savings account ).
Maybe share price should be nearer to £4 - 5 a share, or even less !

Fresnillo plc today announced its financial results for the full year ended 31 December 2015.
http://www.moneyam.com/action/news/showArticle?id=5223274

Octavio Alvídrez, CEO said:
"I am pleased to report a solid overall performance against a backdrop of continued global economic uncertainty and weak precious metals prices. Silver production was at the top end of our guidance, whilst in gold we surpassed our long term 2018 target. Our performance was driven by substantial operational progress during the year: we ramped up Saucito II, reached steady state at Herradura, and have begun to see the results of the measures we have put in place to solve development delays at Fresnillo.

Development projects advanced largely according to plan, with commissioning of phase 1 at San Julián due in the second quarter of 2016, and we have continued to invest in exploration to advance projects and prospects where we have identified strong potential.

We maintained a strong financial position, ending the year with a healthy cash balance, and without impairments. Weaker precious metals prices clearly impacted financial performance, but this was offset by higher volumes; we continued to generate sound profit margins and substantial cashflow from operating activities.

Our 2015 performance underlines the quality of our assets, our low-cost and flexible operations, and the benefits of a disciplined approach to investment, maintenance of a strong balance sheet and a clear commitment to sustainable business practices. We are confident in our ability to build on these solid foundations to deliver long-term value for our shareholders, balancing growth and returns whilst maintaining the strong financial position which allows us to optimise performance in current market conditions.

In light of the weak precious metals price backdrop, we reduced 2015 capital expenditure and exploration spend from budgeted levels, and have similarly reduced these budgets for 2016, deferring certain investments whilst favouring those which accelerate cashflow generation as part of our contingency plan. We will continue to focus on further cost reductions, productivity improvements and value preservation measures as we work towards our 2016 production targets."

Broker recommendations published today 2 March
Numis target 800p from 850p before
Citigroup target N/A Buy
Barclays target 700p Equal weight from 700p before
No major excitement and enthusiasm here

Fresnillo may have made a loss for 2015 except for weakness in Mexican Peso
which helped bring down their mining costs materially.

Average price realized for gold was US$ 1126.50
. . . . silver . . 15.60

We may see better average realization prices in 2016, but
will Mexican peso continue its weakness ?

We now need to look for quarterly production reports, see the Peso - $ rate movement, and of course gold / silver prices.

Remember that mines are generally a wasting asset with a limited life,
so mining Co's should at least yield more than many other investments.

Deutsche Bank today reaffirms its sell investment rating on Fresnillo PLC (LON:FRES) and raised its price target to 790p (from 750p).

I do not understand why it is holding current price and moves up to £10 sometimes.
Someone must be mad to buy at that price
Maybe some fear that we are heading for a global melt down ???

Gold and silver prices are not steaming ahead.
Mexican peso to dollar little changed since 31 Dec, so no material cost saving anticipated.
Negligible yield for wasting asset mining company
FRES probably worth about £8 per share or less.
I am short 10,000 shares but the bugger will not yet collapse.
I will hold my short a bit longer

According to Money AM statistics - if they are correct

FRES PE ratio = 103.54 = years to get your share price back by FRES earnings

FRES yield = 00.35 = about 300 years to get your cash back via dividend yield

!! IN100 YEARS THE GOLD AND SILVER WILL MOST PROBABLY BE ALL MINED OUT
ANYWAY

Which nobheads are buying into this as an investment ??????

Down 4.7% today - closed my short too soon, but about broke even.

Pleased as I was down about £3,600 yesterday with it.

??????????????? Do not know what to do now, as I still think it is overpriced but do not want to go short again, at current price. Maybe I just watch it for a day or so ??????

Surely as the markets are nervous atm, gold is seen as a safe haven, which should push up FRES regardless of the fundamentals. Betting against the market seems pretty risky to me. As you say, if we knew the answer we would all be rich by now!!!

gold has come off $26 today .... indeed, it was down $30 at one point

FRES is down 4.5% today, though FRES also produces silver, so it is not a straight correlation to the gold price. Presumably some people prefer to hold physical gold, others ETFs and others gold producers.

it has just been pointed out to me that gold is probably down due to a few hawkish comments coming from the fed chaps
thus, if interest rates are indeed set to rise sooner rather than later, gold falls and $ gets stronger

Yes this one is very susceptible to sentiment regarding interest rates, and consequently those who move into gold to hedge against low and lower rates.

Lower interest rates often mean higher gold price, but also one needs to watch the £ / $ movements, as lower $ may mean higher gold price.
Also when FT index rises or falls FRES does not necesserely follow index.
Not so straight forward trading in this one I think.


Also if Mexican peso falls then FRES may make cost savings
I still trade FRES on a daily basis - sometimes long sometimes short,
Turnover by value seems to be about 50% silver and 50% gold

It has been dropping for the past 3 or 4 trading days

Could easily be down to 850p soon

except that if the markets turn unsettled, which is far from impossible, you could easily be caught on the wrong side

Mr Cynic
"turn unsettled" - do you mean if we get unanticipated good or bad news
i.e Reports from US or China mainly ? This applies to almost all shares valuations

I am off to Philippines for a month holiday this week end .. that's my good news

referendum, sell in may syndrome + anything else

wife's home?
my younger son loves it over there and indeed the whole region
does a lot of scuba as well

Cynic - yes wife's home Philippines - I have never been before - but spent 30 years in Malawi, Nigeria, Cameroon, 2 years Saudi, 1 year Guyana Sth. America - am 71 now so just need to relax in the warmth. Looking forward to seeing Asia. Do you still go to France each year ? Maybe this year you should try northern Spain which is not over crowded and very scenic.

on hol we're going to cascais (near lisbon) which we enjoyed very much last year and wonderful fish

this year's cycling trip is southern brittany

RBC Capital Markets today downgrades its investment rating on Fresnillo PLC (LON:FRES) to underperform (from sector performer) and raised its price target to 750p (from 610p).

Ex-divi Thurs 21st April 2016 (3¢)

StockMarketWire.com
Fresnillo's gold production rose to 230 koz in the threee months to the end of March - up 26.3% on the first quarter of last year and up 6.5% on the previous quarter.

This was mainly due to a higher speed of recovery at Herradura now steady state has been reached, and a higher speed of recovery at Noche Buena.

Quarterly silver production totalled 12.2 moz (including Silverstream), broadly in line with 1Q15 and 4Q15.

This was the third consecutive quarter of improvements in grade and production at the Fresnillo mine and the group says it is evidence of progression of turnaround plan.

Construction at San Julian remains on track. The leaching plant (stage 1) is expected to be commissioned in 2Q16 and the flotation plant (stage 2) in 4Q16.

The group says it is on track to achieve 2016 production guidance of 49-51 moz silver, (including 4.0 moz from the Silverstream), and 775-790 koz gold

Chief executive Octavio Alvadrez said: "I am pleased to report a solid quarter of production, with 230 thousand ounces of gold and 12.2 million ounces of silver produced across our mines and from the Silverstream contract.

"In particular, we saw a significant improvement in grades at the Fresnillo mine during the quarter, to 236 grammes per tonne - the third consecutive quarter of improvement in both grade and production - as the turnaround at this mine progresses following the measures we have put in place. This continues to be a core area of focus for the Group.

"Our San Julian project is advancing towards production, with commissioning of the first phase on track for the second quarter, and the second phase by the year end.

"We continue to focus on maximising efficiency and productivity across all our mines, and are on course to meet our 2016 production guidance of 49-51 million ounces of silver and 775-790 thousand ounces of gold."

JP Morgan Cazenove today reaffirms its overweight investment rating on Fresnillo PLC (LON:FRES) and raised its price target to 980p (from 950p).

Macquarie today reaffirms its neutral investment rating on Fresnillo PLC (LON:FRES) and set its price target at 1000p.

Citigroup today downgrades its investment rating on Fresnillo PLC (LON:FRES) to sell (from neutral).

That's easy to say.. but why?

Blimey, top riser today so far. Brokers are hopeless!

StockMarketWire.com
Fresnillo has completed construction of the first phase of its San Julian project in Mexico on time and on budget but the milling facility will not be up and running regularly until early August due to a technical problem.

Fresnillo says that after a few days of testings and starting to feed the mill continuously, a minor technical failure occurred, which led to a malfunctioning of the lubrication system, causing wear of the mill pads.

Fresnillo says this kind of event is often experienced during the start-up of a new project, but it was quickly identified and is being addressed.

The company now expects the milling facility to be up and running regularly towards the first week of August, at which point the mill will gradually be taken up to full capacity.

Despite this technical issue, the company confirms its guidance of 775-790 koz of gold and 49-51 moz of silver for 2016 as the higher than expected volumes produced at Saucito will compensate for the shortfall production at San Julian.

The US$515 million San Julian silver-gold project has an expected average production of 10.3 million ounces of silver and 44,000 ounces of gold per year once phase 2 is commissioned by year-end and it reaches full capacity.

Macquarie today reaffirms its neutral investment rating on Fresnillo PLC (LON:FRES) and raised its price target to 1600p (from 1000p).

StockMarketWire.com
Fresnillo (FRES) reported quarterly silver production of 13 moz (including Silverstream), up 14.5% compared to 2Q15.

This is also 6.3% more compared to 1Q16, and first half silver production of 25.2 moz (including Silverstream), up 6.1% vs. 1H15, mainly due to increased ore processed at Saucito and higher ore grades at Cienega.

HIGHLIGHTS:
- Quarterly gold production of 218 koz, up 19.6% vs. 2Q15, and first half gold production of 448 koz, up 23% vs. 1H15, due to a higher speed of recovery and higher ore volumes processed at Herradura, and a higher speed of recovery at Noche Buena.

- Quarterly gold production down 5.3% vs. 1Q16 due to a temporary reduction in the flow of rich solution processed whilst maintenance work was carried out at the Herradura storage pond.

- Construction of the leaching plant (stage 1) at San Julian completed on time and on budget. However, as previously announced, a technical problem with the mill means regular production expected to resume by first week of August.

- Full year gold guidance raised to 850-870 koz from 775-790 koz; full year silver production remains on track (49-51 moz, including Silverstream).

CEO Octavio Alvidrez said: "I am pleased to report solid second quarter production, with 13 million ounces of silver and 218 thousand ounces of gold produced from across our mines and the Silverstream contract.

"We continue to progress the turnaround at our Fresnillo mine, consolidating the improvements already made.

"I am confident that we remain on track to return Fresnillo to a more satisfactory operating level, and expect full year silver production at this mine to show an increase of around 6% compared to 2015.

"Construction of the leaching plant at our San Julian mine was completed on time and on budget at the end of the second quarter.

"As we previously announced, we expect to resume regular production by the first week of August, post a minor issue with the lubrication system at the mill.

"Our full year silver production guidance remains unchanged, as higher than expected volumes produced at Saucito will compensate for the shortfall in production at San Julian.

"Looking ahead, we are today raising our gold production guidance for the full year to 850-870 thousand ounces, and remain on track to meet our silver production guidance of 49-51 million ounces."

StockMarketWire.com
Fresnillo's profits rose by 116.9% to $165.6m in the six months to the end of June with silver production up 6.1% to 25.2 moz - including Silverstream - and gold output increasing to 448 koz, up 23.0%.

Full year gold production guidance has been raised to 850-870 koz from 775-790 koz and full year silver production remains on track (49-51 moz, including Silverstream).

Other highlights:
- Basic and diluted EPS US$22.7 cents per share, up 118.3%

- Cash generated from operations of US$475.2m, up 50.9%

- Strong balance sheet maintained - cash, cash equivalents and short-term investments of US$701.2m

- Interim dividend of US$63.4m (8.6 US cents per share) declared reflecting Board's confidence in the Company's financial position and outlook; no change to previously stated policy

- Construction of the leaching plant (stage 1) at San Julian completed, with production expected to re-start in the coming days

- Centauro Extension project and resumption of Pyrites project approved by the Board

Chief executive Octavio Alvidrez said: "We have had a solid first half operationally, with silver and gold production up 6% and 23% respectively. Silver production was driven by another strong performance at Saucito following the ramp-up of Saucito II and the plant optimisation, higher grades at Cianega, and higher ore grades and production at the Fresnillo mine.

"We continue to progress the turnaround at Fresnillo, consolidating the improvements already made. Gold production was driven by increased output from our open pit mines, Herradura and Noche Buena. I am confident we are well-placed to meet our 2016 silver production guidance of 49-51 million ounces, and our recently increased 2016 gold production guidance of 850-870 thousand ounces.

"The first half saw construction of the leaching plant at our new San Julian mine completed. As previously reported, we expect to re-start feeding ore to the mill in the coming days, post a minor issue with the lubrication system. Phase 2 of this project remains on track for commissioning by year end. Looking further forward, the first half also saw Board approval for the resumption of the Pyrites plant project, thanks to improved market conditions, and the approval of the Centauro Extension project at Herradura, encompassing a second line to the Dynamic Leaching Plant. I am also pleased to report that our ongoing exploration activity yielded interesting drill results at San Julian, Guanajuato and Fresnillo.

"Precious metals prices have performed strongly since the start of the year, and our mines have seen increased production, resulting in robust financial results. However, we are maintaining our cautious approach, with strict operational and financial discipline, and investment decisions will continue to be evaluated on a project by project basis against key criteria. This is in line with our Contingency Plan, which we put in place early this year and which remains in place.

"Our strategic objectives remain unchanged and we will continue to take a long-term view, focusing on balancing profitable growth with returns, whilst maintaining a solid financial position. Thanks to this conservative approach we remain well placed to create value throughout price cycles, with our high quality, low cost assets and significant growth pipeline, combined with our balance sheet strength."

StockMarketWire.com
Fresnillo has announced that the the milling facility at San Julian (phase 1) has been processing ore and the leaching plant operating normally for a week. Further details on the restart and production at San Julian (phase 1) will be provided in Fresnillo's 3Q production report, due to be published on 12 October.

Fresnillo is a share to avoid at all costs as this is a Mexican play and gold is dropping like a rock. Now 1150p.

StockMarketWire.com
Fresnillo achieved record production in 2016, having produced 50.3 moz of silver and 935.5 koz of gold.

Silver production - including Silverstream - was up 7.1% vs. 2015, in line with guidance and 4Q16 silver production of 13.3 moz - including Silverstream - was up 9.5% vs. 4Q15, mainly due to the start up of San Julian phase I.

A higher ore grade at Cienega and an increased contribution from the Silverstream also had a positive impact on production.

Quarterly silver production increased 13.1% vs. 3Q16 due to San Julian (phase I) ramp-up, higher ore processed at Saucito and a higher ore grade and ore processed at Fresnillo.

Record annual gold production of 935.5 koz was up 22.8% vs. 2015 and ahead of guidance, mainly due to reduced gold inventories at Herradura.

Additionally the San Julian (phase I) start-up and an improved overall average speed of recovery at Noche Buena contributed

Quarterly gold production increased 24.2% vs. 4Q15 and 22.0% vs. 3Q16 mainly due to reduced gold inventories at Herradura and the San Julian start up.

For 2017 silver production is expected to be in the range of 58-61 moz including 4 moz from the Silverstream while gold production is expected to be in the range of 870-900 koz, due mainly to the stabilisation of production at Herradura following the reduction in inventories.

Chief executive Octavio Alvadrez said: "I am pleased to report that Fresnillo plc has delivered record production in 2016, having produced 50.3 moz of silver and 935.5 koz of gold.

"The successful ramp-up of San Julian (phase I) was the principal reason for the 7% increase in annual silver production, although higher silver grades at both Cienega and Fresnillo also contributed to the rise in production.

"At the Fresnillo mine, despite reporting a slight improvement in silver production, we continued to experience some issues during the year that impacted the delivery of our turnaround plan.

"We have however, implemented a number of measures and remain focused on addressing these issues and are targeting a year-on-year increase in silver production in the range of 7-10% at the mine in 2017.

"Our 2016 gold production of 935.5 koz exceeded our revised guidance, primarily due to the reduction of inventories at Herradura. The start-up of San Julian (phase I) and a strong performance at Noche Buena also contributed to the increase to gold production.

"We continued to make good progress with our development projects in 2016. Construction of San Julian phase II continued to advance and is on track to be commissioned in the second quarter of 2017, with both phases of San Julian producing a combined annual average of 10.3 moz of silver and 44 koz of gold.

"Further progress was made at the Pyrites Plant project which is set to deliver 3.5 moz silver and 13 koz a year once commissioned in 1H18, while the construction of the second line of the Dynamic Leaching Plant at Herradura remained on track.

"Looking ahead, our 2017 gold production is anticipated to be between 870-890 koz as we expect to reach a steady level of inventories after last year's inventory reductions at Herradura; whilst silver production is expected to be within the range of 58-61 moz, on track to reach 65moz by 2018."

StockMarketWire.com
Fresnillo posts strong overall performance for the uyear to the end of December with record silver production of 50.3 million ounces.

The group said this was in line with guidance, reflecting the initial contribution of San Julian phase I and higher grades at Fresnillo and Cienega, while gold production of 935.5 thousand ounces exceeded revised guidance.

Thew group said adjusted revenue of US$2,045.0 million was up 29.2% on increased volumes and higher metal prices.

Gross profit and EBITDA of US$882.1 million and US$1,032.0 million, were up 103.7% and 88.5% respectively.

Profit from continuing operations before net finance costs and income tax of US$676.5 million was up 237.5%.

It said the evaluation of the Mexican peso against the US dollar positively affected production costs.

Cost per tonne and cash cost decreased at all mines, due to devaluation of Mexican peso and cost reduction initiatives.

Chief executive Octavio Alvidrez said: "I am pleased to report a strong overall performance in 2016.

"We delivered record silver production of 50.3 million ounces, in line with our guidance, reflecting the initial contribution of San Julian phase I and higher grades at Fresnillo and Cianega.

"Gold production of 935.5 thousand ounces exceeded our revised guidance, mainly as a result of the reduction in inventories at Herradura.

"Our record production, combined with higher metal prices and the devaluation of the Mexican peso during the year allowed us to deliver strong financial results in 2016 and as a result the Board has recommended a final dividend of 21.5 cents per share, equivalent to approximately US$158.4 million.

"At the Fresnillo mine, despite reporting a slight improvement in silver production in 2016, we continued to experience some issues that impacted the delivery of our turnaround plan.

"However, we have implemented additional measures to increase mine preparation and expect a gradual improvement in production in 2017.

"San Julian phase I was commissioned in the third quarter and contributed to our record annual production.

"It is now operating at levels above its designed capacity.

"Despite taking the decision to delay the start-up of San Julian phase II, we are pleased with the progress made during the year and are confident that this second phase will be commissioned in the second quarter of 2017.

"We continued to optimise our operations in 2016; we not only made good progress with our development projects but we also increased our resource base.

"The pyrites plant and second line of the dynamic leaching plant at Herradura advanced largely according to plan, with commissioning of both due in 2018, and our exploration work resulted in an increase of our resource base at our operating mines and at projects where we have identified strong potential.

"Our solid operational performance, together with higher prices, lower costs and the favourable effect of the devaluation of the Mexican peso allowed us to almost double the cash generation from our mines.

"This more than offset our capital expenditure and the payment of dividends, resulting in the Company having a cash, cash equivalents and short-term investments balance of US$912.0 million, which increased by US$412.5 million from 2015 to 2016.

"Regrettably, we did not achieve our target of zero fatal accidents in 2016.

"We have put in place a number of safety programmes and best practices at all of our operations and our focus remains on prioritising safety in all of our activities and continuing to strengthen our safety culture.

"For 2017, we expect further increases in production with silver reaching the 58-61 million ounces range (including Silverstream) and gold production to be between 870-900 thousand ounces.

"Capital expenditure is anticipated to be approximately US$800 million and exploration expenses US$160 million, including the capitalised portion.

"We will continue to focus on delivering further cost reductions and productivity improvements in 2017 as well as improving our safety performance to meet our zero harm target.

"Our performance in 2016 again demonstrated the quality of our asset base and our low-cost and flexible operations.

"I am confident that with our focus on operational delivery, disciplined approach to investment and clear commitment to sustainable business practices, we can continue to optimise our performance and maintain our strong financial position to deliver considerable long-term value for our shareholders."

StockMarketWire.com
Fresnillo's silver production rose to 13.5 m/oz (including Silverstream) in the three months to the end of March - up 10.7% on a year ago.

The group said this was mainly due to the contribution of San Julian (phase I).

And it said it was on track to achieve 2017 production guidance of 58-61 moz silver, (including 4.0 moz from the Silverstream).

Quarterly gold production of 222.3 koz was down 3.3% on a year ago and 17.1% lower than the previous three months.

Fresnillo said this was mainly due to the one-off reduction of inventory levels at the leaching pads in Herradura in 2016 and expected lower ore grades at Herradura.

Fresnillo's said it was on track to meet 2017 production guidance of 870-900 koz gold.

Chief executive Octavio Alvadrez said: "I am pleased to report a solid performance in the first quarter of the year.

"Silver production increased 10.7% compared to the first quarter of 2016 reflecting the contribution of the new San Julian (phase I) mine. "The turnaround at Fresnillo continues with improvements in the maintenance process and enhanced operative supervision resulting in an increase in silver production.

"Additionally, access to the Taspana and the new Rosario-Transversal areas at Cianega contributed favourably. "As guided, gold production decreased slightly when compared to the first quarter of last year and Q4 2016 mainly because of the one-off reduction of inventories in 2016. "We continue to make good progress with our development projects. Construction of San Julian (phase II) continued with the commencement of initial tests and the project is on track to be commissioned at the end of Q2.

"The pyrites plant and second line of the dynamic leaching plant are also progressing as expected. "We continue to focus on maximising efficiency and productivity across all our mines, and remain on course to meet our 2017 production guidance of 58-61 million ounces of silver and 870-900 thousand ounces of gold."

Black Rock go below 5%.

Harry I'm just revisiting FRES as a possible future share to trade, do you hold or trade these yourself?

Comparing these with RRS it seems that FRES (as far as trading goes) moves more, would you agree?

I haven't held these for some time Stan. I held them as a stock which was part of a core portfolio for capital growth and from memory I did quite well. I assume trading them means keeping an eye on the price of both silver and gold and allowing for commodity cycles? Certainly possible to trade them and rarely any nasty surprises from this sector.

Thanks Harry, food for further thought.

Fresnillo on track http://www.moneyam.com/action/news/showArticle?id=5553852

Black Rock go above 5%.

StockMarketWire.com
Fresnillo's silver production - including Silverstream - rose to of 14.5 moz in the second quarter, 11.7% up on a year ago and 7.3% higher than the previous three months.

First half silver production totalled 28.0 moz, up 11.2% on a year ago.

It said this was primarily due to the start of operations at San Julian (phase I), higher ore processed at Fresnillo and higher ore grade at Cienega.

The group said quarterly gold production totalled 223 koz, up 2.7% on a year ago as a result of the contribution of San Julian (phase I).

It said the The turnaround plan at the Fresnillo mine continued to show positive signs as volume of ore processed increased for the fourth consecutive quarter and the group was on track to achieve 2017 production guidance of 58-61 moz silver (including Silverstream) and 870-900 koz gold.

Chief executive Octavio Alvadrez said: "I am pleased to report strong first half production results, with 28 million ounces of silver and over 445 thousand ounces of gold produced across our operating mines and from the Silverstream.

"The increase in silver production was primarily driven by the contribution of San Julian phase I and the higher ore processed at Fresnillo following the measures taken to increase production at the mine.

"Quarterly gold production also benefitted from the operations at San Julian (phase I), more than offsetting the expected lower production at Herradura and Noche Buena, and the lower gold ore grade at Saucito.

"We continue to advance our development projects. I am pleased to announce that the construction of San Julian (phase II) was concluded on time and on budget, and following tests with load in the second quarter, commercial production commenced in mid-July.

"Our short-term focus will be on ramping-up San Julian (phase II) to full capacity within the next two months and operating the Fresnillo mine once again at full capacity by year-end, whilst continuing to develop the infrastructure in order to prepare the mine for the future expansion.

"With this progress, we remain on course to meet our 2017 production guidance of 58-61 million ounces of silver and 870-900 thousand ounces of gold."

Interims http://www.moneyam.com/action/news/showArticle?id=5608809

StockMarketWire.com
Fresnillo has confirmed that all its operations, both mine sites and associated infrastructure in Mexico, were unaffected by the recent earthquake and continued as normal.

The group said there would be no impact on production.

In a statement, the company said it was deeply saddened by the terrible earthquake that struck Mexico on 19 Sep and its thoughts and sympathies were with all of those affected by the tragedy.

Fresnillo said its priority was the safety of its staff.

It said thatg following the earthquake the building of the company's corporate headquarters in Mexico City was assessed by specialists who confirmed there had been no structural damage and the building was declared fully safe to occupy.

All administrative functions were resumed after the assessment.

Third Quarter Production Report http://www.moneyam.com/action/news/showArticle?id=5716546

HSBC today upgrades its investment rating on Fresnillo PLC (LON:FRES) to buy (from hold) and cut its price target to 1570p (from 1760p).

StockMarketWire.com
Fresnillo's silver production (including Silverstream) rose 10.5% to 16 moz in the three months to the end of December compared to the third quarter of last year.

Quarterly silver production increased 10.5% vs. 3Q17, while 4Q17 silver production of 16.0 moz (including Silverstream) was up 20.3% vs. 4Q16.

The miner said that the upbeat quarterly output was driven by the first complete year of San Julian (phase I) operating at full capacity and the start-up of operations at San Julian (phase II)

Year to date silver production (including Silverstream) rose to 58.7 moz, up 16.6% versus year-to-date 2016.

Quarterly gold production of 232 koz decreased 13.4% versus 4Q16 due to a lower reduction of gold inventories at Herradura. While annual gold production of 911.1 koz exceeded guidance but decreased 2.6% versus 2016 due to the expected lower reduction of gold inventories and the anticipated lower ore grade deposited at the leaching pads at Herradura.

The group said the outlook on silver production was unchanged, expected to be in the range of 67 to 70 moz (including the Silverstream). Gold production expected to be in the range of 870-900 koz.

Chief executive Octavio Alvidrez said: 'I am pleased to report that Fresnillo has delivered a strong performance in 2017.'

'Construction of the Pyrites Plant project continued while further progress was achieved at the Dynamic Leaching Plant at Herradura,' Alvidrez said. 'We expect to commission both projects in 2018 and to see them contribute to our 2018 production.'

Citigroup today reaffirms its neutral investment rating on Fresnillo PLC (LON:FRES) and set its price target at 1360p.

StockMarketWire.com
Fresnillo reported pre-tax profit rose 3.2% to $741.5m in 2017, up from $718.2m, supported by record silver production.

Silver production rose 16.6% to 58.7m ounces in the year ended Dec. 31, as the first phase of San Julian silver and gold mine in Mexico operated at full capacity for the first full year.

Gold production for the year was 911,132 ounces, down 2.6% compared to the previous year.

Adjusted revenue was US$2,233.2m, up 9.2% compared to the prior year amid record silver volumes, an increase in zinc volumes sold and higher base metal prices.

Gross profit and EBITDA was US$925.4m and US$1,060.1m, up 4.9% and 2.7% respectively.

Capital expenditures was US$604.8m, up 39.3% compared to the period year, but below guidance, mainly due to lower capex at pyrites plant project and Juanicipio.

Silver production is expected to be in the range of 67m to 70m ounces this year while gold production is expected to be in the range of 870,000 to 900,000 ounces.

The company said it expects capital expenditure this year to be approximately US$755m.

Numis today upgrades its investment rating on Fresnillo PLC (LON:FRES) to add (from hold) and left its price target at 1450p.

Citigroup today reaffirms its neutral investment rating on Fresnillo PLC (LON:FRES) and set its price target at 1395p

StockMarketWire.com
Fresnillo reported increased production across it main products including gold and silver in the first quarter of the year but confirmed the fatality of a contract worker at its Saucito mine.

Quarterly silver production (including Silverstream) increased 14.0% compared to the first quarter of 2017, as San Julian operations reached full capacity offsetting lower production at Saucito.

Compared to the fourth quarter of 2017, silver production decreased 3.7% as a result of both the lower volume of ore processed and ore grade at Saucito and the lower ore grade at San Julian.

The miner confirmed it remained on track to achieve its 2018 silver production target of 67-70 moz.

Quarterly gold production increased 4.1% amid a continued drawdown of inventories and a higher ore grade at Herradura. The miner remained on track to deliver on its 2018 gold production target of 870-900 koz gold.

Lead production increased 1.5%, while Zinc production rose 37.9%.

The firm said the construction of the Pyrites plant in the Fresnillo district remained on track. Both the leaching plant at Saucito and second line of the Dynamic Leaching Plant at Herradura were due to be commissioned in the second quarter of the year.

Morgan Stanley today reaffirms its equal weight investment rating on Fresnillo PLC (LON:FRES) and cut its price target to 1330p (from 1620p).

Barclays Capital today reaffirms its equal weight investment rating on Fresnillo PLC (LON:FRES) and cut its price target to 1200p (from 1330p).

JP Morgan Cazenove today reaffirms its neutral investment rating on Fresnillo PLC (LON:FRES) and cut its price target to 1250p (from 1300p).

First Eagle reduce http://www.moneyam.com/action/news/showArticle?id=6147921

metal stocks moving against the Market in general naturally metal prices are higher today.

840.40 +68.20 or +8.83%

Black Rock adds https://www.moneyam.com/action/news/showArticle?id=6174784

3rd Quarter production report https://www.moneyam.com/action/news/showArticle?id=6179264

JP Morgan Cazenove today reaffirms its neutral investment rating on Fresnillo PLC (LON:FRES) and cut its price target to 1200p (from 1250p).

Why is Fresnillo down nearly 6% today ? Gold price is steady and Pound to Dollar is steady ?

Seems the Mexican Government are proposing changes:
RBC comment:
"We think a lot of the points around mining in the recently proposed bills are largely as expected by FRES management when we met them last at the Denver Gold Forum. Whilst Bill #10’s language on possible cancellation of mining concessions if certain clauses are contravened reads badly, we see absolutely no indication that FRES is, has been or ever will be in this situation. In fact, we would argue that the group is well positioned versus peers in terms of stakeholder relations given its long history in Mexico. The rest of Bill #10 will undoubtedly make the concession permitting process for new mines/expansions more arduous due to the requirements around consultation and impact assessments. However, we would argue this just brings Mexico more in line with other international destinations such as Canada and Australia. We would note that FRES at its San Julian mine recently permitted a water reservoir for the operation using the first-ever Indigenous consultation process in mining in Mexico. This again demonstrates that FRES is ahead of peers and in a strong position to cope with changes if/when they come.

What we think the market may be missing today is the fact that all of the FRES concessions for developments for the next 24 months are in place already. This includes the group’s next leg of growth, the high-quality Juanicipio project. On the proposed royalty changes, the 2% EBITDA charge if applied would have a small c. -3% reduction to our EPS forecasts. On the other proposed royalty changes and need for a fund for “human and sustainable development” we would note FRES currently has three royalty payments (concession royalty, extraordinary and special mining royalty). Of these, one-third already goes into a community fund. Could this satisfy the legislation? Possibly. FRES also in our experience invests highly in the local communities in the areas it mines in line with global best practice. This will put it on a strong footing if/when negotiations are had.

Stepping back from the details we would also note that the feedback from both FRES management and other Mexican mining operators has been cautiously optimistic on AMLO’s new mines minister. It is also clear to us that there is a mixture of more extreme and more moderate politicians within AMLO and that populist headlines and proposals are to be expected in the run-up to the Mexican budget on December 15th. We hope and expect sense to prevail in the country and for FRES shares to recover making today’s sell-off an attractive entry point."

Production report https://www.moneyam.com/action/news/showArticle?id=6286673