FRESNILLO (FRES) AI Stock Analysis

• Market Cap: $14.14B
• Dividend Yield: 3.18%
• Average Volume (3M): 3.28M
• Price to Earnings (P/E): 40.2
• Beta (1Y): 0.97
• Revenue Growth: 17.68%
• EPS Growth: 54.84%
• Country: UK
• Employees: 7,179
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Other Precious Metals
• EPS (TTM): 0.53
• Shares Outstanding: 736,893,550
• 10 Day Avg. Volume: 4,460,951
• 30 Day Avg. Volume: 3,281,345
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 8.56
• Enterprise Value/Ebitda: 7.85
• 1Y Price Target: $1,567.74
• Price Target Upside: -24.99% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: 1,935.00p ▼(-7.42% Downside)

Fresnillo's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust cash flow and operational efficiency, combined with optimistic future guidance, outweigh the valuation concerns and technical indicators suggesting potential overbought conditions.

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 generates revenue primarily through the sale of silver and gold produced at its mining operations. The company operates several mines, with the Fresnillo and Saucito mines being its flagship silver-producing sites, and the Herradura mine focusing on gold production. Revenue is driven by the volume of metals extracted and their market prices, which can be influenced by global supply and demand dynamics. Additionally, Fresnillo may benefit from hedging strategies that protect against price fluctuations. The company also engages in exploration activities to discover new deposits, which can lead to future revenue streams. Partnerships with local and international stakeholders enhance its operational capabilities and market reach, further contributing to its financial performance.

FRESNILLO Financial Statement Overview

Summary

Fresnillo exhibits strong financial health with robust revenue growth, improved profit margins, and a solid balance sheet. The company has effectively managed its debt levels and enhanced its cash flow position, despite some fluctuations in net income.

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: 2090.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2090 is above the 20-day moving average (MA) of 1757.39, above the 50-day MA of 1574.23, and above the 200-day MA of 1034.24, indicating a bullish trend. The MACD of 121.18 indicates Negative momentum. The RSI at 85.21 is Negative, neither overbought nor oversold. The STOCH value of 97.19 is Negative, 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
SLP	79 Outperform	£203.93M	23.76	4.80%	3.53%	-5.61%	-31.96%
FRES	78 Outperform	$14.14B	40.18	11.18%	3.18%	17.68%	54.84%
GEMD	66 Neutral	£9.82M	4.18	2.04%	―	6.94%	―
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
EUA	41 Neutral	£118.06M	―	-33.13%	―	220.69%	-21.05%
EEE	―	£421.14M	―	-53.77%	―	―	―
PDL	40 Neutral	£36.95M	―	-35.25%	―	―	―

FRESNILLO Corporate Events

Fresnillo Reports Strong H1 2025 Results Amid Operational Adjustments

Fresnillo PLC reported strong financial and operational results for the first half of 2025, with significant improvements in profitability driven by favorable precious metals prices and operational efficiencies. The company declared an interim dividend and increased its gold production guidance, while adjusting its silver production outlook due to the cessation of the Silverstream contract. Despite challenges in silver production, Fresnillo achieved substantial growth in gold output, particularly at the Herradura mine. The company remains committed to safety, cost control, and value creation for shareholders, even as it navigates operational challenges and a buyback agreement with Peñoles for the Silverstream contract.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £8.00 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

Fresnillo Reports Strong Gold Production Amidst Safety Challenges

Fresnillo PLC reported robust silver and gold production for the second quarter of 2025, with gold production trending towards the upper end of full-year guidance. Despite challenges such as lower ore grades at certain mines and the cessation of mining activities at San Julián DOB, the company achieved a 1.0% increase in quarterly gold production compared to the previous quarter. However, silver production saw a 14.7% decrease compared to the same quarter last year. The company also faced tragic incidents resulting in the loss of two colleagues, prompting a renewed focus on safety measures. The outlook for 2025 remains aligned with previous guidance, with expected silver and gold production ranges provided.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £6.85 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

Fresnillo plc Announces New Board Appointment

Fresnillo plc announced that Ms. Guadalupe de la Vega has been appointed as an Independent Non-Executive Director of América Móvil, a company listed on the Mexican Stock Exchange. This appointment reflects Fresnillo’s ongoing strategic engagement with industry leaders and could potentially enhance its influence and operations within the mining sector.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £6.85 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

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.