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Fresnillo Share Price

Fresnillo PLC was performing well in the mining industry, with strong financial performance and ongoing exploration and development of its mines.

In the first half of 2021, the company reported a 9.5% increase in revenue compared to the same period in the previous year, driven by higher production levels and favorable precious metal prices. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also increased by 23.4% in the same period, reflecting strong operational performance and cost management.

Fresnillo Share Price

Fresnillo PLC is a publicly traded mining company listed on the London Stock Exchange (LSE) and the Mexican Stock Exchange (BMV) under the ticker symbol FRES. As of my knowledge cutoff of September 2021 was also included in the FTSE 100 Index, which tracks the performance of the largest companies listed on the LSE. As of this post, Fresnillo’s Share Price is at 739.64 GBp.

Fresnillo PLC is primarily engaged in Mexico’s exploration, mining, and production of gold and silver. It operates several mines in the country, including the Fresnillo mine, the Saucito mine, and the Herradura mine. The company is one of the largest producers of silver in the world and is also a significant producer of gold.

Fresnillo Share Price

Brief Background of Fresnillo Share

Fresnillo PLC is a mining company headquartered in Mexico City, Mexico. It was founded in 2008 as a spin-off from the Mexican mining company Industrias Peñoles. The company is named after Fresnillo, where its primary mine is located.

Fresnillo PLC is primarily engaged in Mexico’s exploration, mining, and production of gold and silver. It operates several mines in the country, including the Fresnillo mine, the Saucito mine, and the Herradura mine. The company is one of the largest producers of silver in the world and is also a significant producer of gold.

Since its listing on the London Stock Exchange and Mexican Stock Exchange in 2008, Fresnillo PLC has become one of Mexico’s most prominent mining companies and a significant player in the global precious metals market. The company received numerous awards and accolades for its mining operations, including the Mining Journal Excellence Award for Best Latin American Mining Company in 2020.

Advantages of Investing in Fresnillo

  1. Exposure to Precious Metals. As one of the world’s largest producers of silver and a significant producer of gold, Fresnillo PLC offers investors exposure to the precious metals market. These metals are often seen as a haven investment during economic uncertainty and can help diversify an investor’s portfolio.
  2. Strong Financial Performance. Fresnillo PLC has a strong track record of financial performance, with steady revenue growth and a history of profitability. The company’s strong financials reassure investors about its ability to weather market fluctuations.
  3. Experienced Management. The management team at Fresnillo PLC has a wealth of experience in the mining industry and a proven track record of successfully operating mining projects. This experience provides investors with confidence in the company’s ability to continue to deliver strong results in the future.
  4. Exposure to Mexico. As a Mexico-based company, Fresnillo PLC offers investors exposure to the Mexican economy, one of the largest and fastest-growing in Latin America. In addition, the country has a rich mining history and is home to many other significant mining companies, providing a favorable environment for mining operations.

Main Competitors of Fresnillo PLC

Fresnillo PLC operates in the mining industry, and its primary competitors are other mining companies that produce precious metals, particularly gold, and silver. Some of the main competitors of Fresnillo PLC include:

  1. Barrick Gold Corporation. Barrick Gold is the world’s largest gold mining company, operating in multiple countries, including the United States, Canada, and Chile.
  2. Newmont Mining Corporation. Newmont Mining is another global gold mining company operating in multiple countries, including the United States, Canada, and Australia.
  3. Goldcorp Inc. is a Canadian gold mining company in North and South America.
  4. Pan American Silver Corp. Pan American Silver is a Canadian mining company specializing in producing silver, with operations in several countries, including Mexico, Peru, and Argentina.
  5. Coeur Mining, Inc. Coeur Mining is a US-based mining company that primarily produces silver and gold, with operations in the United States, Mexico, and South America.

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Conclusion

Fresnillo PLC was also continuing to invest in the exploration and development of its mines. In the first half of 2021, the company invested $127 million in exploration and development projects, focusing on the Juanicipio mine, a joint venture with Canadian mining company MAG Silver.

Despite the ongoing impact of the COVID-19 pandemic on global markets, Fresnillo PLC continues to demonstrate resilience and adaptability in the mining industry, positioning itself for continued success in the future. However, it’s important to note that market conditions can change rapidly, and investors should always research and seek advice from a financial professional before making investment decisions.

FAQ

FAQ: Fresnillo Share Price

What is the historic performance of Fresnillo PLC?

Fresnillo PLC has had a mixed performance history since its IPO in 2008.

Between 2008 and 2011, the company's stock price saw a solid upward trend, driven by rising demand for precious metals and the company's success in increasing production levels. However, from 2011 to 2015, the company's stock price experienced a period of decline, in line with a general downturn in the mining industry.

Fresnillo PLC's stock price has recovered somewhat in recent years, reflecting improved financial performance and rising precious metal prices. However, the company's stock price has remained volatile, reflecting ongoing market uncertainties.

Regarding financial performance, Fresnillo PLC has a generally strong track record, with steady revenue growth and a history of profitability. However, fluctuating precious metal prices and rising production costs have impacted the company's profitability in recent years.

Does Fresnillo PLC pay dividends to its stockholders?

Yes, Fresnillo PLC pays dividends to its stockholders.

The company has a dividend policy of paying out a minimum of 30% of its annual after-tax profits to shareholders, subject to market conditions and the company's financial position. In recent years, the company has generally paid out a higher percentage of its profits as dividends.

How much does Fresnillo PLC make in a year?

Fresnillo PLC reported its financial results for the first half of 2021, during which it generated revenue of $1.9 billion and a net profit of $393 million.

In 2020, Fresnillo PLC reported revenue of $2.4 billion and a net loss of $68 million, reflecting the impact of the COVID-19 pandemic and lower precious metal prices. In 2019, the company reported revenue of $2.8 billion and a net profit of $301 million.

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Simon Williams
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