mid-cap

Market Update On One Commodity Stock- FRES

Aug 19, 2024 | Team Kalkine

Read Time :10 Mins

Market Update On One Commodity Stock- FRES

FRES:LSE
Investment Type

Mid - Cap
Risk Level
Action
Rec. Price (GBX)

Fresnillo PLC (LSE: FRES)

Fresnillo PLC (LSE: FRES) is an FTSE-100 index-listed silver and gold producer. The Company is engaged in mining minerals like silver, gold, lead, and zinc.

H1 FY24 Interim Results (for the six months to 30 June 2024, released on 30 July 2024)

Revenue Growth: Adjusted revenues increased by 9.0% to USD 1,560.2 million, primarily driven by higher gold and silver prices and a rise in volumes of silver, zinc, and lead sold. Despite a decrease in gold volumes sold, overall revenue growth remained robust, with reported revenues up 10.8% to USD 1,488.3 million.
Balance Sheet and Dividends: The Company has maintained a balance sheet with cash and liquid funds of USD 691.0 million as of 30 June 2024, down from USD 889.7 million at year-end 2023. The net debt to EBITDA ratio improved to 0.17x. An interim dividend of 6.40 US cents per share was declared.
Cost and Efficiency: Adjusted production costs rose by 9.1% due to factors such as increased haulage distances, deeper mining operations, and cost inflation. The Company faced higher maintenance and operational costs, particularly at key mines like Herradura and Fresnillo.
Exploration and Investment: Exploration expenses decreased by 20.3% to USD 77.2 million, reflecting a shift in spending strategy after a front-loaded exploration phase in the previous year.

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Fresnillo PLC (LSE: FRES) was trading at the current market price of GBX 537.50 (as of 19 August 2024, 10:20 AM GMT+1)

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

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 19 August 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.

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Past performance is not a reliable indicator of future performance.