Fresnillo (FRES)

Sector:

Mining

Index:

FTSE 250

708.40p
   
  • Change Today:
    -19.00p
  • 52 Week High: 921.20
  • 52 Week Low: 539.60
  • Currency: UK Pounds
  • Shares Issued: 736.89m
  • Volume: 1,594,987
  • Market Cap: £5,220m

Fresnillo shares lose their shine as profit slumps

By Michele Maatouk

Date: Tuesday 26 Feb 2019

LONDON (ShareCast) -

In the year to 31 December 2018, pre-tax profit fell to $483.9m from $741.5m in 2017, with earnings before interest, tax, depreciation and amortisation down 13.7% to $915.1m and gross profit 15.6% lower at $780.7m.


Fresnillo attributed the drop in gross profit to a higher stripping ratio at the Herradura mine and higher depreciation and increased cost inflation across the group.


Total revenue during the year was up 0.5% to $2.24bn, while silver production increased 5.3% to a record 61.8 million ounces and gold output rose 1.3% to 922,527 ounces. While gold production surpassed the expectations the company had at the beginning of the year, silver production was a miss and Fresnillo said it was "disappointed" not to meet its long-term silver target of 65 moz.


This was mainly due to lower-than-expected ore grades at the Fresnillo and Saucito mines, and some operational issues.


Chief executive officer Octavio Alvidrez said: "Looking ahead, I expect 2019 to be another challenging year. We face a number of headwinds, including lower prices for precious metals and higher inflation. I also expect to see higher depreciation costs as a result of the investments we have made in recent years into the operations, while we continue to expect to work through operational issues and lower grades at certain mines during the year. All this has resulted in us slightly lowering our silver production guidance for 2019.


"Our strategic goals remain unchanged, and we are committed to maintaining our position as the world's largest primary silver company and a leading gold producer in Mexico. Our model is proven, our people are skilled, experienced and dedicated, and a track record of creating value through growth and returns will continue to be our defining characteristic."


At 0925 GMT, the shares were down 7.5% at 902.60p.



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Fresnillo Market Data

Currency UK Pounds
Share Price 708.40p
Change Today -19.00p
% Change -2.61 %
52 Week High 921.20
52 Week Low 539.60
Volume 1,594,987
Shares Issued 736.89m
Market Cap £5,220m

Fresnillo Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
67.82% below the market average67.82% below the market average67.82% below the market average67.82% below the market average67.82% below the market average
94.74% below the sector average94.74% below the sector average94.74% below the sector average94.74% below the sector average94.74% below the sector average
Price Trend
40.24% below the market average40.24% below the market average40.24% below the market average40.24% below the market average40.24% below the market average
12% below the sector average12% below the sector average12% below the sector average12% below the sector average12% below the sector average
Income
79.8% below the market average79.8% below the market average79.8% below the market average79.8% below the market average79.8% below the market average
90.91% below the sector average90.91% below the sector average90.91% below the sector average90.91% below the sector average90.91% below the sector average
Growth
26.17% below the market average26.17% below the market average26.17% below the market average26.17% below the market average26.17% below the market average
76.27% below the sector average76.27% below the sector average76.27% below the sector average76.27% below the sector average76.27% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 11
Sell 0
Strong Sell 1
Total 16
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Fresnillo Dividends

  Latest Previous
  Interim Final
Ex-Div 08-Aug-19 25-Apr-19
Paid 06-Sep-19 24-May-19
Amount 2.60¢ 16.70¢

Trades for 26-Feb-2020

Time Volume / Share Price
16:42 2,900 @ 712.89p
16:35 308,340 @ 708.40p
16:29 81 @ 709.40p
16:29 91 @ 709.40p
16:29 195 @ 708.80p

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