Silver Miner Fresnillo Troubled by a Slew of Issues

Bloomberg reported that silver miner Fresnillo plc (LSE:FRES) is struggling in part due to the low silver price. Summing up the company’s other problems, Luis Maizel of LM Capital Group LLC told the news outlet that it is “getting hit on the production side, and for being emerging markets, and for being Mexico.”

As quoted in the market news:

The company’s $800 million of notes due 2023 have tumbled 5.2 percent in the past three months as silver fell to a five-year low on concern that a stronger dollar and a lack of inflation in developed economies will erode the allure of precious metals. Fresnillo’s bond slump is four times the drop for investment-grade debt in emerging markets.

Investors are souring on Fresnillo, which owns a 400-year-old silver mine, as falling prices threaten to upend earnings at the world’s biggest primary producer of the metal. Silver mining alone accounts for half of Fresnillo’s revenue.

Click here to read the full Bloomberg report.