Estimating the value of a company based on profit from continuing operations can be done using a variety of methods, with one common approach being the Price-to-Earnings (P/E) ratio. This method assumes you have an appropriate P/E ratio for the company based on industry standards, market trends, or historical data.
Here’s how you can calculate it:
Formula:
Company Value
=
Profit from Continuing Operations
×
P/E Ratio
Company Value=Profit from ;Continuing Operations×P/E Ratio
Example Calculation:
Profit from Continuing Operations: $1 billion
P/E Ratio: This can vary based on the industry, company growth potential, and market conditions. For example, if the average P/E ratio for the industry is 15:
Company Value
=
1
billion
×
15
=
15
billion
Company Value=1 billion×15=15 billion
So, if the P/E ratio is 15, the estimated value of company ABC would be $15 billion. |
if profit from continuing operations is $1b at company ABC estimate the value of company ABC? |
Profit from continuing operations is expected to be further benefitted by the lower administrative, corporate and exploration expenses and increase to a range of US$930-950 million in 2024, up more than 500% |
about 8 weeks to the full year financials, load up |
"The average realised gold and silver prices increased 25.3% and 21.7% vs 2023, respectively. The average realised zinc price also increased 8.7% year-on-year, while the average realised lead price decreased 2.7%. These variations, combined with the increase in the volumes of all metals sold, and lower treatment and refining charges, are expected to result in an increase in Revenues of between 25-35% vs 2023."
"As a result, Gross profit is anticipated to be within the range of US$1.2-1.3 billion, up more than 135%. Profit from continuing operations is expected to be further benefitted by the lower administrative, corporate and exploration expenses and increase to a range of US$930-950 million in 2024, up more than 500%."
"Free cash flow[4] is estimated to be within the range of US$820-US$850 million, with expected cash and cash equivalents at year end amounting to US$1.2-US$1.3 billion." |
 The report from Fresnillo for Q4 2024 is overall positive, showcasing a solid year of production with several key achievements and some challenges.
Positive Aspects:
Silver Production: Attributable silver production was in line with guidance for the full year (56.3 million ounces), showing resilience despite some quarterly fluctuations.
Gold Production: Gold production exceeded guidance with a 3.4% increase over FY23, supported by higher ore grades and recovery rates at several mines.
By-Products: Lead and zinc production increased significantly year-on-year, driven by higher ore grades and increased volumes of ore processed at key sites.
Financials: Revenues and gross profit are expected to show significant growth, partly due to higher metal prices and effective cost reduction strategies.
Safety and Efficiency: Safety remains a top priority, with ongoing improvements to workforce protection and mine site efficiencies.
Challenges:
Decreased Silver Production in Q4: Silver production in Q4 2024 decreased both from Q3 2024 and Q4 2023, mainly due to the cessation of mining at San Julián DOB and lower ore grades at certain sites.
Silverstream Agreement Impact: The company reported a potential decrease in the book value of its Silverstream contract due to operational difficulties at Peñoles' Sabinas mine.
Ore Grades and Production: Some mines, especially Fresnillo, faced challenges like reduced ore grades and a decrease in the volume of ore processed, impacting silver and gold production in certain periods.
In conclusion, the company performed well overall, with production and financial results meeting or exceeding expectations in several areas, despite some hurdles in Q4. They remain focused on improving safety and operational efficiency in 2025. |
fres occasionally shoots up making everyone excited, followed by persistent despair. repeated again and again. it is a bit like a manic depressive.
one of the last updates mentioned issues with silverstream production: "experiencing operational difficulties impacting silver production"
my experience of fres has been that these early warnings are a sign of a likely upcoming poor market reaction to the formalised news in the report.
i see the share price in a descending wedge, with the possibility of a dramatic movement soon in share price
experience tells me it could go either way.
cross your fingers! |
Report out tomorrow. No confidence projected by the market yet. |
$2785 just missed it by 0.2%, after S&P PMI and Michigan Consumer Sentiment both miss forecasts. |
I was hoping FRES would break the 700p resistance today ... let's see |
Lots of small buys . If I didn’t know better I’d say someone is trying to manipulate the price 🤣 |
Gold just shy of a USD record now. |
We all want Fres in double digits... |
Gold now £2240 after a new record of £2245. Seems to be just Sterling again, though. |
Another ATH of £2242 just in for gold in Sterling, but none of the other currencies, I think. Even though down slightly on this morning's intraday ATH in MXN, a new record close is still looking possible. |
FRES 1 year +43%, YTD +6% and its only January. Are you people looking at the same chart? |
Indeed, 700p resistance is a killer |
Omg this is now becoming painful to watch |
Its an absolute dog of share |
New closing record for gold of MXN56,611. New intraday records this morning of MXN56,961, £2236 and Euro2649. USD within 1% of a record.
Silver up slightly in all currencies.
I just can't believe the share price. It feels like a pressure cooker about to explode. It can't just keep ignoring PM price rises ... |
resistance 695-705
given the lengthy consolidation period hopefully time to move on up again.. |
And both just went up a little. Surely a new ATH coming for gold in MXN? And possibly in Sterling, too? $ and Euro highs are within view but probably not today. |
Gold flirting with an MXN record thanks to Trump tariff threats driving the New Peso down. Silver still holding above its 50-day. MXN 56,380 and MXN635.
Dec 28 silver still holding up, at $35.28.
Gold seems to like the £2222 area, which is just shy of the recent record. |
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