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.
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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.