Fresnillo Plc: Assessment of Risk and Global Financial Strategies

This report offers a comprehensive analysis of Fresnillo Plc's financial strategy, focusing on risk management and global expansion. Part A examines key investment attractions in foreign countries like Indonesia, China, and Brazil, highlighting the benefits of economies of scale, skilled labor, and tax concessions. It then reviews Fresnillo's five-year performance across different geographic locations (Zacatecas, Durango, and Sonora), assessing revenue and profit trends to identify growth areas and potential risks. The report also explores how Fresnillo manages exchange rate, market, and commodity risks, with an analysis of GBP/MXN exchange rate fluctuations. Part B includes financial calculations related to net sterling receipts/payments and money market analysis. Overall, the report provides valuable insights into Fresnillo's financial performance, risk mitigation strategies, and future growth prospects within the precious metals mining industry. The competitor analysis included, compares Fresnillo with Barrick Gold Corporation and Dowa Holdings Co Ltd.

Fresnillo Risk & Global Financial Strategy

TABLE OF CONTENTS
PART A...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
1. Assessing key attractions for Fresnillo investing in foreign countries....................................3
2. Reviewing 5 years trend of Fresnillo and presenting the areas of business which is likely to
grow.............................................................................................................................................4
3. Stating the manner in which company is managing its exchange, market and commodity
risk.............................................................................................................................................11
CONCLUSION..............................................................................................................................16
PART B.........................................................................................................................................16
a. Calculating net sterling receipts / payments..........................................................................16
2. Money market........................................................................................................................18
B.................................................................................................................................................19
b.................................................................................................................................................20
b: Computing forward and future value.....................................................................................20
REFERENCES..............................................................................................................................23
APPENDIX....................................................................................................................................25
1. Share prices of Fresnillo Plc..................................................................................................25

PART A
INTRODUCTION
In the present times, business units are encouraged to trade or perform activities at global
level with the motive to enhance customer base and profit margin. Hence, when business unit
operates globally then it has to face several risks in relation to exchange rate, commodity
fluctuations etc. In this, firm requires sound and strategic framework which provides assistance
to it in performing activities more effectually. Moreover, the main motive of company behind
global expansion is to enhance market share and profit margin. Thus, by preparing competent
framework company can make contribution in the attainment of goals. The present report is
based on Fresnillo Plc, Mexican company, which is one of the leading precious metal mining
firms incorporated in UK. Fresnillo has attained leading position in world under the category of
silver and gold mining. In this, report will shed light on the attraction points for Fresnillo in
relation to FDI. Besides this, it will also highlight the business segment of the company which is
highly growing. Along with this, report will provide deeper insight about how effectively
Fresnillo is managing risks.
1. Assessing key attractions for Fresnillo investing in foreign countries
From assessment, it has found that from investment perspective in the mining sector there
are several countries in which Fresnillo can invest such as Insdonesia, China, Brazil etc. All such
are the main countries in which Fresnillo can explore its business operations and functions.
When business unit expands its operations and functions at global level then it gets several
benefits in terms of high economies of scale, maximization of profitability, tax concessions and
availability of skilled personnel (Aliyu, Saleha, Jalila and Zunita, 2016). For mining activities
firm requires highly skilled and efficient individuals. Along with this, when business operates at
large level then it attains benefits in terms of cost reductions. All such aspects positively
contribute in the productivity and profitability aspect of firm. Countries which are recognized as
an attraction for foreign investment include following:
 Indonesia: In Indonesia, political condition is highly stable which is one of the main
attraction point that entice foreign capital. Along with this, labour cost is also low in

Indonesia which in turn places direct impact on profitability aspects in a positive manner.
Thus, by considering such aspects, it can be said that for the purpose of better mining and
maximizing profitability aspect Fresnillo should focus on expanding business operations
in such country.
 China: From research, it has been asserted that China is number one producer of gold in
the world. Further, cost of labour is low in China as compared to other countries and it
also has identified that economy of China will grow by 6.5% in the year of 2017. Cost is
one of the main factors that place significant impact on the profit margin of firm. On the
basis of such aspect, by employing skilled and low salaries workers Fresnillo can gain
benefits in monetary terms.
 Brazil: Mining sector of Brazil has made significant contribution in the economic growth
and development (What drives the price of gold?, 2017). Forecasted results or estimations
show that GDP of Brazil will increase or grow by 2.2% at the end of 2018. Along with
this, Brazil provides investors with easy access pertaining to raw material. Further,
diversified economy exists in such country which in turn less vulnerable to international
monetary crisis.
By taking into account all the above mentioned aspects it can be stated that through investing
money in the countries like Brazil, China and Indonesia firm can get benefit in term of both
financial as well as non-financial.
2. Reviewing 5 years trend of Fresnillo and presenting the areas of business which is likely to
grow
Financial evaluation as per geographic location and business segment: On the basis of
cited case situation, turnover and profitability aspect of each location has been evaluated with the
motive to assess risk as well as business area which is highly growing. Such assessment is highly
significant which in turn provides deeper insight about the business entity about the area which is
contributing in organizational profitability (Allen, Macalady, Chenchouni, Bachelet, McDowell,
Vennetier, Kitzberger, Rigling, Breshears, Hogg and Gonzalez, 2010). Besides this, such
evaluation also clearly indicates the areas of business that impose risk in front of Fresnillon in
both monetary and non-monetary aspects. On the basis of geographic location aspects firm is
operated in Zacatecas, Durango, aned Sonora.

Location: Zacatecas
In operation since: 1554
2012 2013 2014 2015 2016
Adjusted
revenue
865.7 588.3 460.3 318.6 328.7
Segment Profit 656.1 379.5 271.9 150 224.2 (Annual
report of
Fresnillo,
2016)
2012 2013 2014 2015 2016
0
100
200
300
400
500
600
700
800
900
1000
Adjusted revenue
Segment Profit
Trend line of sales

2012 2013 2014 2015 2016
0
100
200
300
400
500
600
700
800
900
1000
f(x) = − 134.37 x + 915.43
Adjusted revenue
Adjusted revenue
Linear (Adjusted revenue)
Location: Zacatecas
In operation since: 2011
2012 2013 2014 2015 2016
Adjusted
revenue
285.9 326.3 372.5 468.4 528.0
Segment Profit 206.3 211.9 235 295.2 363.8
2011 2012 2013 2014 2015 2016 2017
0
100
200
300
400
500
600
Adjusted revenue
Segment Profit

2012 2013 2014 2015 2016
0
100
200
300
400
500
600
f(x) = 62.63 x + 208.33
Adjusted revenue
Adjusted revenue
Linear (Adjusted revenue)
Location: Durango
In operation since: 1992
2012 2013 2014 2015 2016
Adjusted
revenue
320.1 250.7 206 169.5 185.0
Segment Profit 217.7 146.1 97 71.1 100.1
2012 2013 2014 2015 2016
0
50
100
150
200
250
300
350
Adjusted revenue
Segment Profit
Trend line

2012 2013 2014 2015 2016
0
50
100
150
200
250
300
350
f(x) = − 35.14 x + 331.68
Adjusted revenue
Adjusted revenue
Linear (Adjusted revenue)
Location: Sonora
In operation since: 1997
2012 2013 2014 2015 2016
Adjusted
revenue
528.6 379.4 342.7 445.1 656.1
Segment Profit 372.9 180.5 170.3 219.0 369.9
2012 2013 2014 2015 2016
0
100
200
300
400
500
600
700
Adjusted revenue
Segment Profit
Trend of sales revenue

2012 2013 2014 2015 2016
0
100
200
300
400
500
600
700
f(x) = 32.07 x + 374.17
Adjusted revenue
Adjusted revenue
Linear (Adjusted revenue)
Location: Sonora
In operation since: 2012
2012 2013 2014 2015 2016
Adjusted
revenue
108.5 148.4 163.5 181.7 225.8
Segment Profit 68.9 45.1 (Annual
report of
Fresnillo,
2013)
25.8 26.7 (Annual
report of
Fresnillo,
2015)
83.9
2012 2013 2014 2015 2016
0
50
100
150
200
250
Adjusted revenue
Segment Profit

Trend Line for sales forecast
2012 2013 2014 2015 2016
0
50
100
150
200
250
f(x) = 26.79 x + 85.21
Adjusted revenue
Adjusted revenue
Linear (Adjusted revenue)
By doing assessment of financial data set, it has been identified that sales revenue and
profit margin of Zacatecas location that is operated through since 1554 showed fluctuated trend.
From the period of 2012 to 2015, due to having positive relationship both sales and profit margin
declined. However, in comparison to 2015, in the year of 2016, sales and profit margin inclined
and accounts for 328.7 & 224.2 respectively. This aspect shows that in the year of 2016, by
making effective control on expenses firm has attained high margin.
Further, the above depicted table of Zacatecas location, operating through since 2011,
clearly presents inclining trend in the sales revenue and profit margin of Fresnillon. At the end of
2016, sales revenue of Fresnillon, pertaining to Zacatecas location, inclined from 285.9 to 528
respectively. Along with this, positive relationship has been assessed in the sales revenue and
profit margin of firm. In accordance with such aspect, segment profit margin also increased from
206.3 to 363.8 respectively. By considering financial aspects it can be said that mining
operations of such location is good.
Graphical presentation shows that, in the context of Durango location, Fresnillon’s
revenue and margin decreased significantly from the period of 2012 to 2015. This is not a good
which shows that business unit failed to attract more customers and generate profit margin. On
the contrary to it, in the year of 2016, sales and segment profit was 185 & 100 respectively.

Annual reports of Fresnillon, from the period of 2012 to 2016, exhibits fluctuated trend in
both sales as well as profit margin of Sonora location, operating from since 1997. During the
time period of 5 years, performance of Fresnillon’s was good in financial terms in 2012 & 2016.
In the middle years such as 2013, 2014 & 2015, business unit failed to generate enough and high
margin due to increasing cost and decreasing revenue.
By doing assessment of financial statements, it has been identified that sales and profit
margin of Sonora location, which is operating from since 2012, increased significantly over the
years. This aspect indicates that business unit has exerted effectual control on cost and thereby
generated high margin.
Conclusive section: Considering the overall assessment, it can be presented that sales and
profitability of Fresnillon’s different locations such as Zacatecas (2011), Sonora (1997) and
Sonora (2012) is growing. Hence, by developing sound framework business unit can maximize
the level of both sales and profit margin. Thus, by exploring business at such location firm can
get the desired level of outcome or success. On the other side, financial performance of locations
such as Zacatecas (1554), Durango (1992), are imposing high level of risk in front of Fresnillon.
Moreover, decreasing trend of sales and profit shows management at such locations are not good.
Thus, business unit is required to identify the causes due to which at such location firm failed to
achieve objectives. By doing this, firm would become able to develop suitable strategies as well
as policies and thereby would become able to gain competitive edge over others.
Competitor analysis
Basis of difference Fresnillo Plc Barrick Gold
Corporation
Dowa Holdings Co
Ltd
Products It offers precious metals
to the customers.
Product portfolio of
Barrick Corporation
includes gold, silver and
copper.
It provides customers
with nonferrous metals
and electronic materials.
Revenue (2016 and in
millions)
1906 US $ 8588 US $ 406,598 JPY

Net income (2016 and
in millions)
427 US $ 655 US $ 21826 JPY
Pricing strategies Company employ either
competitive or
penetration pricing on
the basis of situation.
Competitive pricing Same as Barrick Co.
3. Stating the manner in which company is managing its exchange, market and commodity risk
 Exchange rate risk: For assessing the risk level in relation to exchange rates such as
British Pound Mexican Peso has been evaluated. Moreover, main countries in which
Fresnillo operates include Mexico and UK. By taking into account such aspect
fluctuations pertaining to currency level has been evaluated. The below depicted table
presents that standard deviation in relation to the concerned currency accounts for 2.07
respectively. As compared to the global recessionary period and after such condition
fluctuation with takes place in exchange rate were not high. In accordance with all such
aspects, it can be presented that exchange rate does not impose high level of risk in front
of firm. Besides this, for dealing with the future exchange risk Fresnillo is required to lay
emphasis on undertaking derivative instruments. This in turn helps business unit in
hedging the risk in an effectual way. Moreover, foreign exchange market is uncertain and
it has direct impact on the financial aspects of firm. In this regard, by making focus on
undertaking derivative tools business unit can mitigate foreign exchange risk to a great
extent.
Date Price
17-Nov 25.29
17-Oct 25.44
17-Sep 24.46
17-Aug 23.13
17-Jul 23.52
17-Jun 23.62
17-May 24.00
17-Apr 24.37

17-Mar 23.51
17-Feb 24.89
17-Jan 26.21
16-Dec 25.57
16-Nov 25.73
16-Oct 23.10
16-Sep 25.15
16-Aug 24.68
16-Jul 24.80
16-Jun 24.33
16-May 26.74
16-Apr 25.10
16-Mar 24.82
16-Feb 25.24
16-Jan 25.80
15-Dec 25.32
15-Nov 24.96
15-Oct 25.46
15-Sep 25.60
15-Aug 25.70
15-Jul 25.17
15-Jun 24.73
15-May 23.51
15-Apr 23.56
15-Mar 22.61
15-Feb 23.08
15-Jan 22.59
14-Dec 22.97
14-Nov 21.81
14-Oct 21.56
14-Sep 21.77
14-Aug 21.72
14-Jul 22.32
14-Jun 22.18
14-May 21.54
14-Apr 22.07
14-Mar 21.76
14-Feb 22.18
14-Jan 21.95

13-Dec 21.59
13-Nov 21.45
13-Oct 20.89
13-Sep 21.19
13-Aug 20.75
13-Jul 19.36
13-Jun 19.69
13-May 19.47
13-Apr 18.85
13-Mar 18.73
13-Feb 19.35
13-Feb 19.37
13-Jan 20.20
13-Jan 20.14
12-Dec 20.87
12-Dec 20.86
12-Nov 20.76
12-Nov 20.72
12-Oct 21.11
12-Oct 21.12
12-Sep 20.79
12-Sep 20.80
12-Aug 20.93
12-Aug 20.95
12-Jul 20.90
12-Jul 20.90
12-Jun 21.01
12-Jun 20.98
12-May 22.21
12-May 22.14
12-Apr 21.15
12-Apr 21.13
12-Mar 20.51
12-Feb 20.45
12-Jan 20.55
Standard deviation 2.07
(Source: GBP/MXN - British Pound Mexican Peso, 2016)

Interpretation: The above depicted table shows that standard deviation in the case of GBP /
Mexican Peso accounts for 2.0 respectively. Referring such value it can be stated that risk
pertaining to exchange risk is highly lower. Hence, extent to which value of GBP/MXN peso
will deviate in the near future with the high lower value. Thus, it can be said that exchange rate
risk for Fresnillo Plc is not very high.
 Market risk: Cash optimization is one of the main market risks that closely influences the
business operations and functions of Frensnillo. Hence, unpredictable and never ending
shift of commodity prices impose risk in front of business unit. Hence, limited visibility
of pricing and demand has significant impact on the working capital and overall
performance of firm (Risks which are facing by metal and mining sector, 2017). Along
with this, mine accidents, mining related diseases, community protests and aspects related
to neglecting mine rehabilitations obligations closely influences the image of business
unit. Hence, for coping up and reducing the level of such risk Frensnillo has provided
personnel with all the protective equipments in accordance with law.
Further, by measuring the level of accident and related causes firm can ensure effective
management of risk by taking strategic action. In addition to this, it is estimated by the
business unit that productivity aspect of mining will decline in the near future (Manuj and
Mentzer, 2008). This in turn places direct and high level of impact on profitability and
overall performance of firm. In this regard, by organizing training and developing sound
framework Frensnillo can reduce such exposure and thereby would become able to maximize
profitability.
Graph of share prices (Refer appendix 1)

12/1/2011
3/29/2012
7/26/2012
11/22/2012
3/21/2013
7/18/2013
11/14/2013
3/13/2014
7/10/2014
11/6/2014
3/5/2015
7/2/2015
10/29/2015
2/25/2016
6/23/2016
10/20/2016
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Share prices of Frensillo Plc
Adj Close
 Commodity risk: By doing assessment of annual report pertaining to Frensnillo, it has
been identified that subsidiaries of such business unit have risk in relation to changes take
place in the prices of metals. In this regard, it can be presented that changing price level
has significant impact on profitability and overall results of firm (Bu and Wagner, 2016).
Due to the economic condition and industry related cycles prices of metal are fluctuated
significantly. Hence, with the motive to deal with such risk business unit undertakes
derivative instruments or tools (Cai, Lu, Wu and Yu, 2016). This in turn helps company
and its subsidiaries in hedging in against to the precious metal commodity price exposure.
The above depicted table shows that aggregate sensitivity in relation to making
changes in the fair value of commodity only influenced PBT rather than equity. Hence, to
minimize such risk and enhance profitability aspect Frensnillo should focus on undertaking
sound derivative instruments.

CONCLUSION
From the above report, it has been concluded that at the time of taking decision in relation to
expansion at global level Fresnillo should consider both micro and macro factors. It can be seen
in the report that Brazil, China and Indonesia are recognized as attractive countries for the
purpose of foreign investment. By investing money in such countries firm would become able to
get high monetary benefits in terms of cost reduction and increasing margin. It can be stated that
out of 5, sales as well as profit margin of three locations such as Zacatecas (2011), Sonora (1997)
and Sonora (2012) is good over others. Thus, firm is required to make control over expenses
which in turn helps in enhancing profit margin to a great extent. Along with this, it has been
articulated that Fresnillo has employed sound strategies for managing both market and
commodity risk. For ensuring smooth functioning of operations and offering high level of
security to the workers firm should take feedback from them. It can be summarized from the
report that to manage exchange rate risk firm should undertake hedging strategy.
PART B
a. Calculating net sterling receipts / payments
1. Forward foreign exchange market
Particulars Amount
Amoun
t (in
£'s)
Net cash receipts due in
three months (in $) 401,000 201619
Net cash receipts due in
six months (in Euro) 180,000 124957
Net cash receipts in 12
months (in $) 500,000 251788
Exchange rate ($'s)
BID ASK
Spot (£/$) 2.0043 2.0097

3- months forward (cents premium) 1.54 1.42
6- months forward (cents premium) 1.72 1.68
12 - months forward (cents premium) 1.85 1.7
BID ASK
Spot (£/$) 2.0043
2.009
7
3- months forward (cents premium) 1.9889
1.995
5
6- months forward (cents premium) 1.9871
1.992
9
12 - months forward (cents
premium) 1.9858
1.992
7
Exchange rate (€)
BID ASK
Spot (£/€)
1.43
5 1.436
3- months forward (cents
discounts) 0.44 0.48
6- months forward (cents
discounts) 0.55 0.61
12 - months forward (cents
discounts) 0.73 0.91
BID ASK
Spot 1.435 1.436
3- months forward (cents discounts) 1.4394
1.440
8
6- months forward (cents discounts) 1.4405
1.442
1
12 - months forward (cents
discounts) 1.4423
1.445
1
2. Money market
Given that
Interest rates

Loa
n Deposit
Sterling 5% 4%
Dollars 7% 6%
Euros 3% 2.50%
Partic
ulars
Amo
unt
Calculate
PV Conversion of
amount at sport
rate (in £)
Interest on
Deposit amount
(In £)
Net
cash
receipts
due in
three
months
(in $ @
7%)
401,0
00
401,000 /
1.017=
394297
394297 / 2.0043 =
196725.5
196725.5 * 4% *
3/ 12 = 1967.25
Net
cash
receipts
due in
six
months
(in
Euro @
3%)
180,0
00
180,000 /
1.015 =
177339.9
177339.9 / 1.435 =
123581.8
123581.8 * 4% *
6/ 12 = 2471.64
Net
cash
receipts
in 12
months
(in $ @
7%)
500,0
00
500,000 /
1.07 =
467289.7
467289.7 / 2.0043 =
233143.6
233143.6 * 4% =
9325.74
B.
In accordance with the cited case situation, on the day of maturity, Fresnillo received
60% of $500000. However, $10000 was received by Fresnillo on the behalf of 40% and entered
in another forward contract pertaining to 3 months. Thus, as per the spot price, given in the case
situation, three months forward price has been determined in the following way:

Spot 2.053 – 2.06
Three months forward 1.03 – 1.00cents premium
Bid Ask
2.053 2.06
2.053 – (1.03 / 100) = 2.04 2.06 – (1/100) = 2.05
Amoun
t
Amount
Amount
Forward
contract of
$190000 for
the period of 3
months
$19000
0
190000 /
2.06 =
92233
92233 *
7% *
3/12 =
1614.08
Amount after
the period of 3
months
92233
+1614.0
8 =
93847.1
Amount at bid
price at which
bank is ready
to purchase
190000 190000 /
2.04 =
93014.1
5
Loss
93014.1
5 -
93847.1
= -
832.94

Interpretation: The above depicted table shows that if customer will extend forward
contract for the period of 3 months then it may result into loss of 832.94. In this, for the purpose
of assessment $190000 was considered because compensatory amount of $10000 was received
by Fresnillio. This is the main reasons by considering the same calculation was performed on the
amount of $190000.
b.
Calculation of Forward:
b: Computing forward and future value
Calculation of Forward:
Sport price 1.651 1.66
price after
premium 1 month 1.643 1.65
PAM 2 month 1.637 1.65
PAM 3 month 1.634 1.64
PAM 4 month 1.633 1.64
PAM 5 month 1.631 1.64
PAM 6 month 1.630 1.64
Calculation of future
Particulars Figures
Worth of potential export contract (in $) 1,250,000
Value per contract (in £) £62500
Value in four month (US dollar @ 1.02 c pm) 1.6565 – (1.6565 * 1.02 / 100) = 1.6463
Amount required (in £) 1250000 / 1.6463 = 759278.38
Number of contracts required 759278.38 / 62500 = 12.14 or 13
Value of contract (in £) £62500 * 13 = 812500
Amount of premium 1.62 * 13 = 21.06
Amount at the day of exercise 781250 * 1.64 = 1281250
Profit 1281250 – (1,250,000 + 21.06) = 31228.94
Conversion of dollar in pound (profit figure) 39018.75 / 1.5 = £20819.29

Calculation of option
Particulars Call Put
Exercise price ($1.6500 / £) 1.80 1.75
Particulars Figures
Worth of potential export contract (in $) 1,250,000
Value per contract (in £) £31250
Value in four month (US dollar @ 1.02 c pm) 1.6565 – (1.6565 * 1.02 / 100) = 1.6463
Amount required (in £) 1250000 / 1.6463 = 759278.38
Number of contracts required 759278.38 / 31250 = 24.3 or 25
Value of contract (in £) £31250 * 25 = 781250
Amount of premium 1.75 * 25 = 43.75
Amount at the day of exercise 781250 * 1.65 = 1289063
Profit 1289063 – (1,250,000 + 43.75) = 39018.75
Conversion of dollar in pound (profit figure) 39018.75 / 1.5 = £26012.5
On the basis of above assessment, it is suggested to the entity to exercise option for the
purpose of hedging.

REFERENCES
Books and Journals
Aliyu, A. B., Saleha, A. A., Jalila, A. and Zunita, Z., 2016. Risk factors and spatial distribution
of extended spectrum β-lactamase-producing-Escherichia coli at retail poultry meat
markets in Malaysia: a cross-sectional study. BMC public health. 16(1). p.699.
Allen, C.D., Macalady, A.K., Chenchouni, H., Bachelet, D., McDowell, N., Vennetier, M.,
Kitzberger, T., Rigling, A., Breshears, D.D., Hogg, E.T. and Gonzalez, P., 2010. A global
overview of drought and heat-induced tree mortality reveals emerging climate change risks
for forests. Forest ecology and management. 259(4).pp.660-684.
Bu, M. and Wagner, M., 2016. Racing to the bottom and racing to the top: The crucial role of
firm characteristics in foreign direct investment choices. Journal of International
Business Studies. 47(9).pp.1032-1057.
Cai, X., Lu, Y., Wu, M. and Yu, L., 2016. Does environmental regulation drive away inbound
foreign direct investment? Evidence from a quasi-natural experiment in China. Journal of
Development Economics. 123.pp.73-85.
Manuj, I. and Mentzer, J. T., 2008. Global supply chain risk management. Journal of business
logistics. 29(1).pp.133-155.
Online
Annual report of Fresnillo. 2013 [Pdf]. Available through: <
http://www.fresnilloplc.com/media/122000/fresnilloar13.pdf>.
Annual report of Fresnillo. 2015. [Pdf]. Available through: <
http://www.fresnilloplc.com/media/208706/fresnilloara15web.pdf>.
Annual report of Fresnillo. 2016. [Pdf]. Available through: <
http://www.fresnilloplc.com/media/296123/FRES-25764-Annual-Report-2016-Web.pdf >.

GBP/MXN - British Pound Mexican Peso. 2016. [Online]. Available through: <
https://www.investing.com/currencies/gbp-mxn-historical-data >.
Risks which are facing by metal and mining sector. 2017. [Online]. Available through: <
http://www.miningglobal.com/top-10/10-business-risks-facing-mining-and-metals-industry-
2016-17>.
What drives the price of gold?. 2017. [Online]. Available through: < https://www.focus-
economics.com/blog/gold-the-most-precious-of-metals-part-3>.

APPENDIX
1. Share prices of Fresnillo Plc
Date
Adj
Close
12/1/2011 null
1/1/2012
1609.1
2
2/1/2012
1762.9
9
3/1/2012 1481.2
3/31/2012
1445.9
8
4/30/2012
1269.4
3
5/31/2012
1372.0
8
6/30/2012
1371.1
3
7/31/2012
1470.0
1
8/31/2012
1756.1
6
9/30/2012
1818.7
1
11/1/2012 1884.1
12/1/2012
1750.4
7
1/1/2013
1571.3
5
2/1/2013
1471.8
3
3/1/2013
1285.1
3
3/31/2013
1091.7
9
4/30/2013
1119.5
6
5/31/2013
856.41
8
6/30/2013
999.15
5
7/31/2013 1265.2

1
8/31/2013
947.32
2
9/30/2013
949.75
5
11/1/2013
811.01
6
12/1/2013
725.82
5
1/1/2014
749.19
2
2/1/2014
926.38
9
3/1/2014
821.23
9
3/31/2014
829.02
8
4/30/2014
784.72
9
5/31/2014
848.98
7
6/30/2014 906.43
7/31/2014
936.61
2
8/31/2014
739.94
3
9/30/2014
679.09
2
11/1/2014 693.21
12/1/2014
745.78
4
1/1/2015
875.27
4
2/1/2015
799.33
3
3/1/2015
664.48
8
3/31/2015
700.51
2
4/30/2015
741.43
7
5/31/2015
677.49
5
6/30/2015
631.61
3