Fresnillo (FRES)

Sector:

Mining

Index:

FTSE 100

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839.80p
   
  • Change Today:
      27.40p
  • 52 Week High: 1,206.00p
  • 52 Week Low: 724.80p
  • Currency: UK Pounds
  • Shares Issued: 736.89m
  • Volume: 1,379,180
  • Market Cap: £6,188m

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 839.80p
Change Today 27.40p
% Change 3.37 %
52 Week High 1,206.00p
52 Week Low 724.80p
Volume 1,379,180
Shares Issued 736.89m
Market Cap £6,188m

Fresnillo Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
64.7% below the market average64.7% below the market average64.7% below the market average64.7% below the market average64.7% below the market average
93.16% below the sector average93.16% below the sector average93.16% below the sector average93.16% below the sector average93.16% below the sector average
Price Trend
52.56% below the market average52.56% below the market average52.56% below the market average52.56% below the market average52.56% below the market average
3.88% below the sector average3.88% below the sector average3.88% below the sector average3.88% below the sector average3.88% below the sector average
Income
65.6% below the market average65.6% below the market average65.6% below the market average65.6% below the market average65.6% below the market average
82.61% below the sector average82.61% below the sector average82.61% below the sector average82.61% below the sector average82.61% below the sector average
Growth
28.51% below the market average28.51% below the market average28.51% below the market average28.51% below the market average28.51% below the market average
73.77% below the sector average73.77% below the sector average73.77% below the sector average73.77% below the sector average73.77% below the sector average

What The Brokers Say

Strong Buy 8
Buy 0
Neutral 5
Sell 0
Strong Sell 1
Total 14
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Fresnillo Dividends

  Latest Previous
  Final Interim
Ex-Div 25-Apr-19 09-Aug-18
Paid 24-May-19 07-Sep-18
Amount 16.70¢ 10.70¢

Trades for 14-Jun-2019

Time Volume / Share Price
16:35 25,000 @ 838.43p
16:35 289,367 @ 839.80p
16:33 800 @ 833.36p
16:33 800 @ 833.36p
16:33 800 @ 828.83p

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