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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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).