FRESNILLO (FRES) AI Stock Analysis

• Market Cap: £10.56B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 95.7
• Beta (1Y): 1.11
• Revenue Growth: 25.76%
• EPS Growth: -41.10%
• Country: UK
• Employees: 7,179
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Other Precious Metals
• EPS (TTM): 0.24
• Shares Outstanding: 736,893,550
• 10 Day Avg. Volume: 1,364,395
• 30 Day Avg. Volume: 1,261,567
• PEG Ratio: -0.84
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -89.29
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 2.34
• 1Y Price Target: £1,207.64
• Price Target Upside: -19.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: 1,626.00p ▲(8.69%Upside)

Fresnillo's strong financial performance and positive earnings call are significant factors driving the score. The stock's technical indicators suggest positive momentum, albeit with caution due to potential overbought signals. Valuation concerns slightly offset these positives, as the high P/E ratio suggests possible overvaluation. Corporate events add a small positive influence by highlighting strong governance and transparency.

FRESNILLO Business Overview & Revenue Model

Company Description

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Other. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; and San Julián silver-gold mine situated on the border of Chihuahua/Durango states. The company has mining concessions covering an area of approximately 1.7 million hectares of surface land in Mexico. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc is a subsidiary of Industrias Peñoles S.A.B. de C.V.

How the Company Makes Money

Fresnillo makes money primarily through the extraction and sale of silver and gold. The company's revenue model is centered on mining operations where they extract these precious metals from their owned and operated mines. The extracted silver and gold are then processed and refined into bullion, which is sold at market prices. Key revenue streams include the sale of silver and gold to international markets and long-term contracts with industrial and commercial buyers. Significant partnerships with financial institutions and commodities traders also contribute to their earnings, allowing the company to hedge against market volatility and secure favorable pricing terms.

FRESNILLO Financial Statement Overview

Summary

Fresnillo demonstrated robust financial health with strong revenue growth and improved cash flow. The balance sheet remains stable with a low Debt-to-Equity ratio and increased cash reserves. Despite a decline in net income in 2023, the improvements in gross and net profit margins alongside operational efficiency highlight the company's financial strength.

Income Statement

Fresnillo has shown robust revenue growth with a significant increase from 2023 to 2024, improving its gross and net profit margins. Gross Profit Margin increased to approximately 35.4%, and Net Profit Margin rose to 4.03% in 2024. The EBIT and EBITDA margins also improved, indicating better operational efficiency. However, the company faced a net income decline in 2023, which is a concern.

Balance Sheet

The balance sheet is strong with a healthy Debt-to-Equity ratio of about 0.22 and an improved Equity Ratio of 65.6% as of 2024, indicating a stable financial structure. The company's ROE has slightly decreased, reflecting lower profitability relative to shareholder equity. However, the reduction in total debt and increase in cash reserves bolster financial stability.

Cash Flow

Fresnillo's cash flow position is notably strong with a substantial increase in operating cash flow and free cash flow in 2024. The Free Cash Flow to Net Income ratio is positive, indicating efficient cash generation relative to profits. The company's ability to generate cash flow suggests good liquidity and potential for reinvestment or debt reduction.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.50B	2.71B	2.43B	2.70B	2.43B
Gross Profit	1.24B	503.24M	536.02M	936.92M	879.37M
EBITDA	1.35B	697.03M	829.22M	1.20B	1.25B
Net Income	140.92M	233.91M	271.90M	421.21M	374.12M
Balance Sheet
Total Assets	5.88B	5.74B	5.91B	5.77B	5.67B
Cash, Cash Equivalents and Short-Term Investments	1.30B	534.58M	969.06M	1.24B	1.07B
Total Debt	853.46M	948.95M	1.28B	1.28B	1.23B
Total Liabilities	1.67B	1.67B	2.00B	1.96B	2.06B
Stockholders Equity	3.86B	3.77B	3.69B	3.62B	3.48B
Cash Flow
Free Cash Flow	929.26M	-57.49M	-89.94M	303.09M	505.36M
Operating Cash Flow	1.30B	425.92M	502.19M	895.14M	917.68M
Investing Cash Flow	-465.46M	-369.53M	-514.18M	-501.56M	-366.10M
Financing Cash Flow	-248.28M	-495.83M	-254.11M	-227.32M	178.73M

FRESNILLO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1496.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRES, the sentiment is Positive. The current price of 1496 is above the 20-day moving average (MA) of 1372.05, above the 50-day MA of 1170.74, and above the 200-day MA of 807.63, indicating a bullish trend. The MACD of 88.85 indicates Positive momentum. The RSI at 73.11 is Negative, neither overbought nor oversold. The STOCH value of 74.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FRES.

FRESNILLO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRES	78 Outperform	£10.56B	95.72	3.70%	1.34%	25.76%	-41.10%
GEMD	75 Outperform	£9.28M	4.10	2.04%	―	6.94%	―
SLP	69 Neutral	£169.07M	19.70	4.80%	4.62%	-5.61%	-31.96%
Sector *	44 Neutral	C$958.76M	-6.68	-13.31%	2.79%	17.55%	-32.28%
PDL	41 Neutral	£27.67M	―	-35.25%	―	―	―

FRESNILLO Corporate Events

Fresnillo plc Discloses 2024 Government Payments

Fresnillo plc has released its Report on Payments to Governments for the year 2024, detailing the financial contributions made to national, regional, and local authorities in countries where it operates. The report, complying with UK Regulations, highlights payments totaling $79.4 million, primarily in Mexico, with significant contributions in taxes, royalties, and fees for licenses and concessions. This disclosure underscores Fresnillo’s commitment to transparency and regulatory compliance, potentially impacting its reputation and stakeholder relations positively.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £685.00 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

Fresnillo plc Announces Successful AGM Resolutions

Fresnillo plc announced the successful passing of all resolutions at its Annual General Meeting, including the re-election of independent directors and approval of dividends. This outcome reflects strong shareholder support and positions the company to continue its strategic objectives in the mining industry.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £685.00 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

Fresnillo Reports Strong 2024 Financial Performance and Optimistic Outlook

Fresnillo plc reported a strong financial performance in 2024, with a significant increase in profitability driven by high silver and gold prices and operational efficiencies. The company achieved a 27% increase in adjusted revenue to $3.6 billion and more than doubled its gross profit to over $1.2 billion. The positive results were supported by effective cost reduction initiatives and favorable currency effects. Fresnillo declared a total dividend of 32.5 US cents per share and a special dividend of 41.8 US cents per share, returning $547.5 million to shareholders. The company is optimistic about future prospects, with a supportive business environment in Mexico and promising exploration projects in Mexico, Chile, and Peru. Fresnillo is committed to sustainability, with improvements in renewable energy use and water management, and continues to focus on safety and corporate responsibility.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £685.00 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

Fresnillo Sells MAG Silver Shares Amid Strategic Realignment

Fresnillo plc announced the sale of the majority of its shares in MAG Silver Corp following Pan American Silver Corp’s agreement to acquire MAG Silver. This decision aligns with Fresnillo’s strategic investment objectives, as the conversion of its stake would not meet its goals. The company remains confident in the Juanicipio mine’s performance and plans to use the proceeds from the sale to support its growth pipeline and maintain a strong balance sheet. Fresnillo also looks forward to collaborating with Pan American, maintaining its role as the operator and majority owner of Juanicipio.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £685.00 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

Fresnillo Announces 2024 Dividend Conversion Rates

Fresnillo plc announced the conversion rate for its 2024 final and special dividends, setting the exchange rate at 1.32810 US$/GB£. The final dividend will be 19.6521 pence per share, and the special dividend will be 31.4736 pence per share, payable on 30 May 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may influence investor perceptions and market positioning.

Fresnillo Announces 2024 Dividend Conversion Rates

Fresnillo plc has announced the conversion rate for its 2024 final and special dividends, with the exchange rate set at 1.32810 US$/GB£. The final dividend will be 19.6521 pence per share, and the special dividend will be 31.4736 pence per share, payable on 30 May 2025 to shareholders registered by 22 April 2025. This announcement reflects the company’s ongoing commitment to shareholder returns and may impact its financial operations and stakeholder interests.

Fresnillo PLC Reports Stable Start to 2025 with Strong Gold Output

Fresnillo PLC reported a stable start to 2025 with silver production down due to the cessation of mining at San Julián DOB, but anticipates a stronger performance in the second half. Gold production increased compared to the previous year, driven by strong performance at Herradura and processing of accumulated inventories. The company remains focused on cost discipline and is well-positioned to benefit from stronger precious metals prices. Despite some decreases in production volumes for lead and zinc, Fresnillo maintains its production guidance for 2025 and continues to prioritize safety and community well-being.

Fresnillo plc Releases 2024 Annual Report and Announces 2025 AGM

Fresnillo plc has released its 2024 Annual Report and Accounts, along with the Notice of the 2025 Annual General Meeting, which will be available on the company’s website and the National Storage Mechanism. The AGM is scheduled for May 20, 2025, in London. This announcement highlights Fresnillo’s commitment to transparency and shareholder engagement, reinforcing its strong position in the mining industry.