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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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.