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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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