Fresnillo (FRES)

Sector:

Mining

Index:

FTSE 100

786.20p
   
  • Change Today:
    -1.80p
  • 52 Week High: 921.20
  • 52 Week Low: 527.00
  • Currency: UK Pounds
  • Shares Issued: 736.89m
  • Volume: 973,583
  • Market Cap: £5,794m

Fresnillo voluntarily aligns tax treatment across mining operations

By Josh White

Date: Monday 01 Jul 2019

LONDON (ShareCast) - (Sharecast News) - Fresnillo updated the market on the tax treatment of its mining works on Monday, reporting that in 2017 the Mexican tax authorities (SAT) opened a routine audit into the 2014 tax returns of two of its underground mining subsidiaries.
The FTSE 100 company said that audit primarily related to the tax treatment of mining works, which was not explicitly dealt with in the Mexican income tax law.

Following that, in 2018 the firm and SAT agreed on the tax treatment deemed most appropriate to mining works disbursements for the year of the audit, resulting in a tax amendment which was documented through an agreement executed between SAT, Mexico\'s tax ombudsman PRODECON, and Fresnillo on 30 November.

\"Fresnillo has now determined it to be in the company\'s best interests to align its tax treatment across its underground mining operations subsidiaries with the conclusive agreement,\" the board explained in a statement on Monday.

\"Accordingly, Fresnillo has voluntarily elected to apply the same criteria regarding the tax treatment of mining works to all its underground mines, retrospectively for the years 2014 to 2018.\"

The company said the decision had an estimated net impact on the profit and loss statement of $8m.

It said the total amended amount was $55.3m, of which $39.6mwas income tax and mining rights and $15.7m was interest and surcharges.

The principal amount was reclassified from deferred to current taxes, and had no impact on the income statement.

\"This principal amount will be offset in future years by deducting depreciation from the tax base,\" the board explained.

It said the total amended amount of $55.3m had been covered as $22.2m against tax receivables, with the remaining $33.1m in cash.

\"These effects will be recorded in the company\'s results for the six months ending 30 June.\"

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Fresnillo Market Data

Currency UK Pounds
Share Price 786.20p
Change Today -1.80p
% Change -0.23 %
52 Week High 921.20
52 Week Low 527.00
Volume 973,583
Shares Issued 736.89m
Market Cap £5,794m

Fresnillo Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
85.5% below the market average85.5% below the market average85.5% below the market average85.5% below the market average85.5% below the market average
96.52% below the sector average96.52% below the sector average96.52% below the sector average96.52% below the sector average96.52% below the sector average
Price Trend
42.04% above the market average42.04% above the market average42.04% above the market average42.04% above the market average42.04% above the market average
38.21% above the sector average38.21% above the sector average38.21% above the sector average38.21% above the sector average38.21% above the sector average
Income
91.08% below the market average91.08% below the market average91.08% below the market average91.08% below the market average91.08% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
97.21% below the market average97.21% below the market average97.21% below the market average97.21% below the market average97.21% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 13
Sell 0
Strong Sell 1
Total 15
neutral
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Fresnillo Dividends

  Latest Previous
  Final Interim
Ex-Div 23-Apr-20 08-Aug-19
Paid 02-Jun-20 06-Sep-19
Amount 11.90¢ 2.60¢

Trades for 29-May-2020

Time Volume / Share Price
16:53 25,420 @ 783.21p
16:35 243,471 @ 786.20p
16:29 5 @ 784.20p
16:29 189 @ 784.00p
16:29 17 @ 784.00p

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