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Highlights

  • Fresnillo PLC (LSE: FRES) shares declined around 29.70% in the last six months, and over the previous 12 months, they have fallen by 24.66%
  • On 26 April 2023, the company updated about its Q1FY23 production. FRES said silver production increased by 5.1% sequentially to 13,158 koz
  • The top 10 shareholders of the company collectively form ~88.87% of the total shareholding.

Gold and silver producer Fresnillo PLC (LSE: FRES), an FTSE-100 index-listed company, witnessed a selloff after it reported its FY22 earnings. In FY22, the company, which is the world's largest primary silver producer and Mexico's second-largest gold producer, reported silver production of 53.7 million ounces (moz), which was in line with its guidance and was slightly higher than FY21 production of 53.09 moz.

Meanwhile, its attributable gold production in FY22 stood at 635.9 koz (thousand ounces), also in line with its earlier guidance. However, its revenue declined by 10.4% annually to USD 2,422 million in FY22, primarily because of lower average realized prices of silver. Meanwhile, its EBITDA declined by 37.7% to USD 751.10 million in the year because of higher production costs.

On 26 April 2023, the company updated about its Q1FY23 production. FRES said silver production increased by 5.1% sequentially to 13,158 koz, while gold production rose by 3% over Q4FY22 to 173,034 koz.

FRES FY23 Outlook

For the full year FY23, the company expects attributable silver production to be in the range of 57.0 moz to 64.0 moz, and attributable gold production is expected to be between 590 koz and 640 koz.

On 15 May 2023, the precious metal producer announced that operations resumed at the Herradura mine after an unexpected suspension for a short duration.

Worth mentioning here is that being in the mining industry, FRES' business is exposed to certain risks. Some of these risks pertain to exploration activities and the environmental damage done during the mining activities. The company is also exposed to volatility in international commodity prices.  

Top 10 Shareholders:

The top 10 shareholders of the company collectively form ~88.87% of the total shareholding. Industrias Penoles SAB de CV holds the maximum number of shares with ~74.99% shareholding, followed by T. Rowe Price Associates, Inc. with ~03.65% shareholding, as depicted in the chart below:

Stock price performance

The stock has declined by around 29.70% in the last six months; over the last 12 months, it has fallen by 24.66%. The stock has a 52-week high and 52-week low of GBX 996.800 & GBX 623.00, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 22 June 2023. The reference data in this report has been partly sourced from EODHD/Others.