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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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."