Fresnillo plc
Encyclopedia
Fresnillo plc is a Mexican-based precious metal
s mining company incorporated in the United Kingdom and headquartered in Mexico City
in Polanco, next door to the Palacio de Hierro department store. Fresnillo is the world's largest producer of silver from ore
(primary silver) and Mexico's second-largest gold miner. The first Mexican firm to have its primary listing on the LSE, Fresnillo is a constituent of the FTSE 100 Index
.
, a minority stake in the company was spun off
on the London Stock Exchange
in a May 2008 IPO
, with a secondary listing on the Mexican Stock Exchange on the same day.
in Zacatecas
, with the other mines at Cienega in Durango
and Herradura in Sonora
. In 2007 Fresnillo produced 34.3 million ounces of silver and 279,614 ounces of gold, as well as around 20 tons each of zinc
and lead as by products from the three mines. Industrias Peñoles retained the rights to its primary base metals mines when Fresnillo was spun off. The company also has 21 active exploration projects located across the country, and has signalled plans to use the money raised in its IPO to expand into Peru and Chile.
Precious metal
A precious metal is a rare, naturally occurring metallic chemical element of high economic value.Chemically, the precious metals are less reactive than most elements, have high lustre, are softer or more ductile, and have higher melting points than other metals...
s mining company incorporated in the United Kingdom and headquartered in Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
in Polanco, next door to the Palacio de Hierro department store. Fresnillo is the world's largest producer of silver from ore
Ore
An ore is a type of rock that contains minerals with important elements including metals. The ores are extracted through mining; these are then refined to extract the valuable element....
(primary silver) and Mexico's second-largest gold miner. The first Mexican firm to have its primary listing on the LSE, Fresnillo is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
.
History
Formerly a wholly owned operating division of Industrias PeñolesPeñoles
Peñoles , based in Mexico City, Mexico, is a subsidiary company 100 percent Mexican and owned by the private Grupo Bal. Peñoles is the second largest Mexican mining company, the first Mexican producer of gold, zinc and lead and the world leader in silver production. Peñoles is a company with active...
, a minority stake in the company was spun off
Spin out
A spin-out, also known as a spin-off or a starburst, refers to a type of corporate action where a company "splits off" sections of itself as a separate business....
on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in a May 2008 IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, with a secondary listing on the Mexican Stock Exchange on the same day.
Operations
The company operates three gold and silver mines in Mexico: the largest in terms of silver output is located near the city of FresnilloFresnillo
Fresnillo /fres'nijo/ , founded in 1554 by Francisco de Ibarra, is the second largest city in Zacatecas state, north central Mexico...
in Zacatecas
Zacatecas
Zacatecas officially Estado Libre y Soberano de Zacatecas is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 58 municipalities and its capital city is Zacatecas....
, with the other mines at Cienega in Durango
Durango
Durango officially Estado Libre y Soberano de Durango is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. The state is located in Northwest Mexico. With a population of 1,632,934, it has Mexico's second-lowest population density, after Baja...
and Herradura in Sonora
Sonora
Sonora officially Estado Libre y Soberano de Sonora is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided into 72 municipalities; the capital city is Hermosillo....
. In 2007 Fresnillo produced 34.3 million ounces of silver and 279,614 ounces of gold, as well as around 20 tons each of zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
and lead as by products from the three mines. Industrias Peñoles retained the rights to its primary base metals mines when Fresnillo was spun off. The company also has 21 active exploration projects located across the country, and has signalled plans to use the money raised in its IPO to expand into Peru and Chile.