FRESNILLO (FRES) AI Stock Analysis

• Market Cap: £16.37B
• Dividend Yield: 2.96%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 46.5
• Beta (1Y): 0.66
• Revenue Growth: 34.84%
• EPS Growth: 78.48%
• Country: UK
• Employees: 7,179
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.54
• Shares Outstanding: 736,893,550
• 10 Day Avg. Volume: 1,469,120
• 30 Day Avg. Volume: 1,844,221
• PEG Ratio: -1.00
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 6.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,265.31
• Price Target Upside: 0.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: 2,333.00p ▲(3.78% Upside)

Fresnillo's overall stock score is driven by its strong financial performance and positive earnings call, indicating robust operational efficiency and growth potential. However, technical indicators and valuation suggest caution, with potential overvaluation and mixed short-term momentum.

FRESNILLO Business Overview & Revenue Model

Company Description

Fresnillo plc is a leading precious metals mining company based in Mexico, primarily engaged in the exploration, development, and production of silver and gold. It operates several mining properties, with a strong focus on silver production, and is recognized as the world's largest primary silver producer. The company also has interests in gold mining, contributing to a diversified portfolio within the mining sector. Fresnillo's operations are characterized by a commitment to sustainability and innovation, aiming to maximize the value of its mineral resources while minimizing environmental impact.

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 improvements in revenue and cash flow, despite fluctuations in net income. The company has effectively managed its debt levels, enhancing financial stability and operational efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.94B	3.50B	2.71B	2.43B	2.70B	2.43B
Gross Profit	1.87B	1.24B	503.24M	536.02M	936.92M	879.37M
EBITDA	1.66B	1.35B	697.03M	829.22M	1.20B	1.25B
Net Income	456.05M	140.92M	233.91M	271.90M	421.21M	374.12M
Balance Sheet
Total Assets	5.88B	5.88B	5.74B	5.91B	5.77B	5.67B
Cash, Cash Equivalents and Short-Term Investments	1.82B	1.30B	534.58M	969.06M	1.24B	1.07B
Total Debt	850.46M	853.46M	948.95M	1.28B	1.28B	1.23B
Total Liabilities	1.73B	1.67B	1.67B	2.00B	1.96B	2.06B
Stockholders Equity	3.79B	3.86B	3.77B	3.69B	3.62B	3.48B
Cash Flow
Free Cash Flow	1.58B	929.26M	-57.49M	-89.94M	303.09M	505.36M
Operating Cash Flow	1.94B	1.30B	425.92M	502.19M	895.14M	917.68M
Investing Cash Flow	-349.13M	-465.46M	-369.53M	-514.18M	-501.56M	-366.10M
Financing Cash Flow	-731.45M	-248.28M	-495.83M	-254.11M	-227.32M	178.73M

FRESNILLO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2248.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2248 is below the 20-day moving average (MA) of 2332.20, above the 50-day MA of 2198.26, and above the 200-day MA of 1369.02, indicating a neutral trend. The MACD of -10.67 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 is Neutral, 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
FRES	―	£16.37B	46.52	11.97%	2.96%	34.84%	78.48%
SLP	―	£228.92M	14.74	7.47%	3.18%	24.10%	182.94%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GEMD	―	£4.65M	-0.55	-8.98%	―	-19.24%	-1347.92%
EUA	―	£107.73M	―	-6.61%	―	220.69%	-400.00%
PDL	―	£39.03M	-0.59	-70.13%	―	-45.11%	2.28%

FRESNILLO Corporate Events

Fresnillo PLC’s Q3 Report: Gold Production Up, Silver Down

Fresnillo PLC reported its third-quarter production results, showing a decrease in silver production due to lower ore grades and the cessation of mining activities at San Julián DOB. Gold production, however, showed an upward trend year-to-date, driven by strong performance at the Herradura mine. The company remains on track to meet its full-year guidance, with gold production expected to reach the upper end of the forecast range. Despite challenges in silver production, Fresnillo aims to capitalize on strong precious metals prices through efficient operations and a focus on safety.

The most recent analyst rating on (GB:FRES) stock is a Hold with a £22.00 price target. To see the full list of analyst forecasts on FRESNILLO stock, see the GB:FRES Stock Forecast page.

Fresnillo Announces 2025 Interim Dividend Exchange Rate

Fresnillo plc announced the exchange rate for its 2025 interim dividend, set at 1.35169 US$/GB£, translating the dividend of 20.8 US cents per share to 15.3881 pence per share. The dividend will be paid on 17 September 2025 to shareholders registered by 15 August 2025, reflecting the company’s ongoing financial activities and commitment to shareholder returns.

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 PLC Reports Strong H1 2025 Financial Results

Fresnillo PLC, a leading producer in the precious metals mining sector, is renowned for being the world’s largest primary silver producer and Mexico’s largest gold producer, with operations primarily located in Mexico.

Fresnillo PLC Reports Record Profits Amid Operational Challenges

Fresnillo PLC’s recent earnings call painted a picture of robust financial health, marked by record-breaking profits and dividends. The company’s operational excellence and positive external relations were highlighted, although tempered by safety concerns and specific operational challenges, including losses from the Silverstream buyback.

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.