
Fresnillo Plc is a leading precious metals producer with a strong focus on gold and silver mining. They have a significant presence in Mexico, with a portfolio of high-quality assets.
Their business model is centered around extracting gold and silver from their mines, with a focus on efficiency and cost management. Fresnillo Plc aims to maximize shareholder value through responsible mining practices.
The company's financial strength is a key factor in its success, with a solid balance sheet and a strong cash position. Fresnillo Plc has a proven track record of generating cash flow from operations.
Their financial performance has been impressive, with significant revenue growth and a robust profit margin. This financial strength allows them to invest in their operations and maintain a strong competitive position in the market.
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Operations and Performance
Fresnillo plc operates three gold and silver mines in Mexico, with the largest mine, Mina Proaño, located near the city of Fresnillo in Zacatecas.
The company's mines produced 34.3 million ounces of silver and 279,614 ounces of gold in 2007, with around 20 tons each of zinc and lead as by-products.
Fresnillo plc has 21 active exploration projects across the country, and plans to use the money raised in its IPO to expand into Peru and Chile.
Here are some key statistics about Fresnillo plc's operations:
- 3 gold and silver mines in Mexico
- 34.3 million ounces of silver produced in 2007
- 279,614 ounces of gold produced in 2007
- 21 active exploration projects
- Planned expansion into Peru and Chile
Operations
Fresnillo plc operates three gold and silver mines in Mexico, with the largest mine being Mina Proaño, located near Fresnillo in Zacatecas.
The company also has 21 active exploration projects across the country, with plans to expand into Peru and Chile using the funds raised from its IPO.
In 2007, Fresnillo plc produced 34.3 million ounces of silver and 279,614 ounces of gold from its three active mines, as well as around 20 tons each of zinc and lead as by-products.
The company's operations are quite extensive, with three active mines in Mexico and 21 exploration projects across the country.
Here are the locations of Fresnillo's three active mines:
- Mina Proaño (also known as Fresnillo Mine) in Zacatecas
- Cienega in Durango
- Herradura in Sonora
Fresnillo's operations have been successful, with the company producing significant amounts of silver and gold in 2007.
The Challenge

Fresnillo Plc faced a challenge at its Saucito mine: maximizing silver production without compromising quality.
The company's initial recovery process involved grinding the ore into a raw material and processing it to extract lead, which also extracted much of the silver.
Data analysis with Minitab Statistical Software played a crucial role in increasing the mine's monthly revenue by over $2 million.
The quality of the raw ore, which can't be controlled, affects the recovery rate and grade of the silver it contains.
Analysis revealed that the company could increase the silver recovery rate by 2% without affecting the final silver concentrate.
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Financial Information
Fresnillo plc's financial information reveals a strong performance. The company's profit margin stands at 11.56%, indicating a healthy ability to maintain profitability.
Fresnillo's return on assets (ttm) is 11.81%, which suggests the company is effectively utilizing its assets to generate revenue. This is a testament to the company's efficient operations.
The return on equity (ttm) of 13.85% is also noteworthy, demonstrating Fresnillo's ability to generate profits from shareholder equity. This is a strong indicator of the company's financial health.
Here's a summary of Fresnillo's key financial metrics:
The company's revenue (ttm) of $3.94 billion is substantial, and the net income available to common shareholders (ttm) of $456.05 million is a significant contributor to the company's financial performance.
Financial Highlights
The company's profitability is a significant aspect of its financial health.
The profit margin stands at 11.56%, indicating a substantial portion of revenue is converted into profit.
Return on Assets (ROA) is 11.81%, showing that the company is effectively utilizing its assets to generate profit.
Return on Equity (ROE) is 13.85%, a strong indicator of the company's ability to generate earnings from shareholder equity.
Revenue has reached 3.94 billion dollars, a significant figure that demonstrates the company's size and scale.
Net Income Available to Common is 456.05 million dollars, a substantial amount that reflects the company's profitability.
Diluted EPS (Earnings Per Share) is 0.62, a measure of the company's profitability per share.
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Valuation Measures
Valuation Measures are an essential part of financial analysis, helping investors understand a company's value and potential for growth. Market Cap is a key metric, currently standing at 22.73B.
The Trailing P/E ratio is a significant indicator of a company's profitability, currently sitting at 48.83. This means that investors are willing to pay nearly 49 times the company's past earnings for its shares.
A Forward P/E ratio of 23.42 suggests that investors expect the company's earnings to grow in the future. This is a more optimistic outlook compared to the Trailing P/E ratio.
Here's a breakdown of some key valuation metrics:
These metrics provide a comprehensive view of a company's valuation and help investors make informed decisions.
Business Focus
Fresnillo plc primarily explores for silver, gold, lead, and zinc concentrates.
The company operates through seven segments, including Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio.
Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico.
Its projects include the Fresnillo silver mine located in the state of Zacatecas, and the Saucito silver mine situated in the state of Zacatecas.
The company also leases mining equipment and produces gold/silver doré bars.
Fresnillo plc was founded in 1887 and is headquartered in Mexico City, Mexico.
Frequently Asked Questions
Is Fresnillo a good buy?
Fresnillo's analyst rating consensus is Moderate Buy, indicating a neutral sentiment. If you're considering investing, it's worth exploring the company's fundamentals and recent market trends for a more informed decision.
Why is Fresnillo's share price falling?
Fresnillo's share price is falling due to a significant decline in gold and silver production. The company's latest production numbers, released on 23 April, showed a 23.5% drop in gold production and a 9.7% drop in silver production compared to Q4 2024.
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