Fresnillo (FRES.LSE) Stock Analysis & Winston Score

Fresnillo PLC is a mining company that digs silver and gold out of the ground in Mexico. It operates several underground mines and sells the metal it produces to refiners and industrial buyers around the world. Fresnillo is the world's largest primary silver producer and one of Mexico's biggest gold miners. The company makes money by selling silver, gold, lead, and zinc — its revenue depends heavily on the market prices of these metals, which change constantly. Almost all of its mines are in Mexico, making it geographically concentrated, and it is listed on the London Stock Exchange with majority ownership held by the Mexican conglomerate Peñoles. Fresnillo's main competitive advantage is its large portfolio of high-grade ore deposits, but its biggest risk is falling silver and gold prices, which it cannot control and which directly shrink its profits when they drop.