For a mine that was first opened when Mary Queen of Scots was battling for the English crown, Fresnillo’s (FRES) eponymous silver operation is in fine fettle. The mine remains both profitable and a top 10 producer globally. Its reserve of 92mn ounces (oz) of silver also means there is plenty to come, while a new processing plant should soon be operational, boosting both gold and silver output.
IC TIP:
Buy
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
- Structural demand in silver market
- Strong balance sheet
- Big capital investments
- Improved state and labour relations
Bear points
- Inherent metals price volatility
- Chunky valuation
This is by far the oldest part of the Mexican silver giant’s portfolio, though its other operations also have a degree of longevity: its second oldest mine opened in 1992.