Fresnillo Share Discussion Threads

[zicopele] 23/6/2021 15:29

Worth emphasising that debt was renegotiated at lower rate. This was discussed extensively in conference call. Net interest cost will be significantly lower this year.

Ag price has saved Fres big time from a cash squeeze. AISC must be around $11 per ounce so cash generation at current production levels of say 1m ounces per week is enormous. They could probably fund all capex with operating cashflow but that might be a tight squeeze if price if Ag falls.

Looking very good for results. My only concern is Juanicipio. If construction is proceeding there like the jobs I see daily, there may be delays due to lack of materials, plant and labour....but materials in particular.

But that is temporary. It looks undervalued with the new economy demands for Ag.

[trader536] 23/6/2021 14:17

Kenny the clown - I reiterate: Shut up you clueless muppet.

There are no production issues.

Read the company dividend policy and ask yourself what will happen to the dividend when the profits rise. Muppet!

[imastu pidgitaswell] 23/6/2021 14:17

Cash at the start of 2020 was $337m. Cash at the end was $1,070m.

After the flows above, the other major factor was an additional $350m from increased debt.

The gross debt (see the Senior notes on slide 35 of the year end results) is higher then the previous $800m because they issued more (fixed for more than 30 years) ahead of the capital intensive spending they have embarked on for Orisyvo and Rodeo. Which they will pay down with the resulting cashflow. That is what mining is - investing to generate cashflow higher than the investment. In fact, that is what business is...

[imastu pidgitaswell] 23/6/2021 14:13

Eh?

The debt isn't rising. Look at the 2020 cashflow (slide 34) in that link, and 2021 will be better still. 2020 Operating cashflow of $917m (would have been higher but for a negative working capital movement which will not recur), capex of $412m, dividends of $105m.



Net cash increase of $733m which is after the $350m additional from the debt raise. $383m excluding the debt increase. Them's the indisputable facts.

Silver production is rising. Gold production is falling. Overall income and operating cashflow is rising.

Sorry, but you are flat wrong on the facts here. Don't do a Plat on me and tell me black is white etc.

The interpretation - who knows? My view is it fell (and I wasn't holding as posted here ad nauseam) from 1350 because it was overvalued. Now it's not, imho - but that is an opinion.

[kennyp52] 23/6/2021 14:06

Imastu ... 13833 ... fair points but the market doesn't like this and it pays a woeful dividend on top of significantly rising debt . The silver price might save their embarassment but if production issues remain unsorted this will go down further and I think you know that . Facts ... the share price is floundering at 812p down from over 1300p 6 months ago ... thats the only fact that really matters I'm afraid.

[imastu pidgitaswell] 23/6/2021 13:17

It did (price of silver solving their issues) and they did (got lucky).

kenny - no comment on 13833 - you know, details, quantification, facts?

[zicopele] 23/6/2021 12:57

Debt is not an issue with Fresnillo. They got lucky with Ag price increase and it solved their debt and capex problems.

They also refinanced at lower rates of interest which should support the bottom line.

[timydogy] 23/6/2021 12:27

[...]

hxxps://www.streetinsider.com/dr/news.php?id=18591941

Same dates a year apart.

[trader536] 23/6/2021 12:11

If 1H silver production comes in at 26moz then we have $260m extra profit on 1H 20 with just the silver price rise alone. Juanicipio is also starting to contribute now, so we should see quarter on quarter sliver production increases going forward.

The average achieved gold price is up around $100 on 1H 20 which should bring an extra $40m.


Plenty going on here.....


Our US$22.7 million tunnel boring machine (TBM) began operations in the Fresnillo mine advancing over 1,300 metres by the end of December – working alongside the manufacturer, further improvements are expected in 2021.

The first production stope at Juanicipio concluded on schedule in 3Q 2020. Commissioning is now expected in 4Q 2021

The new Pyrites Plant at the Fresnillo mine was completed on schedule early in Q4 – the start of operations has been deferred mainly due to a delay in final inspections by the authorities as a result of Covid-19 restrictions on travel and other regulatory delays. Once it becomes fully operational, and including production from the Saucito plant, we anticipate that it will produce an average of 3.5 moz of silver and 13 koz of gold per year

Further actions are enhancing productivity at Fresnillo, including the US$30 million plant optimisation project at Fresnillo to cope with higher content of lead and zinc from lower levels of the mine ongoing. The new flotation circuit was completed in the second half of 2020 as anticipated. The connection of this new circuit to the beneficiation plant is expected to be undertaken in early 2021

Silver resources stood at 2.3 boz, a 1.6% increase over 2019 mainly as a result of exploration at Saucito. Gold resources remained stable 38.9 moz.

[kennyp52] 23/6/2021 11:30

Hmmm .... clueless ... I said 700s you said 3000p ... clueless huh ? Big fat egg on your face here you muppet. Can you please stop using muppet .. I used it first ... you muppet

[trader536] 23/6/2021 11:24

Shut up you clueless muppet.

[kennyp52] 23/6/2021 11:19

This does not hold 808p then it could be back to 725p . Ask Trader536 ... its his chart that shows it .

[eriktherock] 23/6/2021 09:52

808.4 gap fill from Friday

[kennyp52] 23/6/2021 09:18

Imastu … look at the debt and current year forecast production . If you want to know why this continues to slide these are your answers .

[imastu pidgitaswell] 23/6/2021 09:08

Swinsco

The production position and outlook for FRES is well documented on this thread. Basically silver is rising and gold is reducing but not as fast as was previously expected - per the Q1 results. The Juanicipio mine is moving into production in 2021 - i.e. now.

In the medium term, 2-5 years, there will be replacement mines, Rodeo, Orisyvo and others coming on stream to replace declining mines.

Broad timings on slide 23:



The production outlook is summarised on slide 21.



AGM (with accompanying statement) tomorrow.

[swinsco] 23/6/2021 09:05

Trader536 continues his de-ramping on cey board. Only right the real questions about Fres get posted on the correct board.

[swinsco] 23/6/2021 09:02

Trader536Are you sure about that? Are you sure the production numbers are increasing in Mexico? Production issues continue? I would be doing some research closer to the sites - your choice of course. Results will see hey?

[kennyp52] 23/6/2021 08:42

Trader536 and his gaps .. this one needs to go back to 725 apparently 🤣

[leoneobull] 23/6/2021 07:09

https://www.mining.com/web/wall-street-accumulating-physical-silver-ahead-new-regulations-price-explosion/

[amaretto1] 22/6/2021 18:30

Dow will hit 40,000 before 20,000 !!They will wipe shorts out firstFED is in no hurry believe me

[amaretto1] 22/6/2021 18:28

And don't ever use margin more than 2 to 1 !!

[ukgeorge] 22/6/2021 10:49

Yes agree lageremia, back in 2008 I was spread betting full time on precious metals and equities and got wiped out in a very short period of time.