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Industrias PeñOles S A B De C V

PE&OLES

Industrias Peñoles, S.A.B. de C.V. is a major Mexican mining and metals company with integrated operations spanning precious and base metals. Through its subsidiary Fresnillo plc (LSE: FRES) and its own Metallurgical and Chemical divisions, Peñoles is one of the world's largest silver producers and a significant gold, zinc, and lead producer.

The company's portfolio is anchored by world-class Mexican mining assets including the Fresnillo silver mine, the Saucito mine, the Herradura gold mine, and the Peñoles metallurgical complex in Torreón. Fresnillo plc operates several of these mines and is publicly listed, while Peñoles retains a controlling interest, creating a unique holding company structure. The Sabinas mine (zinc/lead) and the development of the Juanicipio project further bolster the portfolio.

Financially, Peñoles benefits from strong precious metals pricing. Q3 2025 revenue reached approximately USD 1.98 billion, with net income of USD 301 million. The balance sheet is healthy, featuring nearly equivalent cash and debt positions in the USD 3.8-3.9 billion range. The company holds investment-grade credit ratings of 'BBB' (Fitch, S&P).

From a Rick Rule and Don Durrett analytical perspective, Peñoles presents a robust but jurisdictionally concentrated investment. The Tier 3 (Mexico) jurisdiction risk introduces regulatory and security headwinds. However, the company's vast resources, established infrastructure, and formidable silver and gold production base offer solid fundamental value at current commodity prices. Margin potential is substantial given the elevated price of silver, though operational cost inflation and Mexican regulatory dynamics remain key watchpoints.

6.86 Updated
FAIR
LOW RISK

Data Quality

73

Market Cap

$20.22B

Total valuation

Stock Price

$51.00

▲ 2.46% today

Free Cash Flow

N/A

Annual

Financial Position

-$178.48M

Net debt position

PEG Ratio

ⓘ

N/M

Not meaningful

Analysis

Management TeamProperties OwnershipValuationBalance SheetJurisdictionCost StructureShare StructureDevelopment PipelineIndustry PartnershipsMarket TimingLiquidityInfrastructure
Total Weighted Score 6.75

Score Interpretation

8.5 - 10: Excellent
7.0 - 8.4: Good
5.0 - 6.9: Fair
< 5.0: Needs Attention

Hover any criterion below to reveal its full rationale, key metrics, strengths, concerns, and source documentation.

Criterion Detailed Analysis

Recommendation

Industrias Peñoles is a fundamentally solid major silver and gold producer with a unique integrated metallurgical advantage. The primary investment drawback is its 100% concentration in Mexico (Tier 3), which carries regulatory and security risks. However, the company is generating robust free cash flow at current elevated precious metals prices and maintains a near net-cash balance sheet, making it a fair-value opportunity for investors seeking leveraged exposure to the silver market.

Red Flags

CriterionSeverityScoreDescription
jurisdictionMedium5.00100% of operations located in Mexico, exposing the company to regulatory changes, resource nationalism, and security risks.
cost_structureLow6.00Operating in the second to third quartile of the cost curve limits margin protection during metal price downturns.

Scenario Analysis

Bull Case

Share Price: $65.60
Probability: 40%
Expected Return: 56%
Confidence: 75%

Bull case: Silver prices sustain above $35/oz and gold remains elevated, driving substantial FCF growth and multiple expansion.

Base Case

Share Price: $46.47
Probability: 45%
Expected Return: 10%
Confidence: 85%

Base case: Current metal prices are largely maintained; the company continues steady production and debt reduction.

Bear Case

Share Price: $27.33
Probability: 15%
Expected Return: -35%
Confidence: 65%

Bear case: Silver prices retreat, and operational costs in Mexico continue to inflate, squeezing margins.

Audit Trail

#Source
1Evidence Ledger Data: Market timing indicators, total debt (USD 3.99B), and cash equivalents (USD 3.80B) verified via Yahoo Finance source as of 2026-07-08.
2Q3 2025 Financial Report (penoles.com.mx): Revenue of USD 1.98B, Net Income USD 301M.
3Simply Wall St / Forbes: Confirmation of CEO Rafael Rebollar González since Jan 2021.
4Fitch Ratings (Oct 2024): Reaffirmed 'BBB' rating; noted second to third quartile cost position.
5Form 6-K / Fresnillo plc Reports: Reserve and resource estimates for Fresnillo, Saucito, and Juanicipio projects.

Financials

Core Metrics

Annual Production

N/A

Troy oz per year

Revenue

$7.56B

Latest reported

Net Income

$1.72B

Annual

Enterprise Value

$16.96B

Net debt: $178.48M

Adj. EBITDA

$2.86B

EV/EBITDA 5.92x

Income & Cash Flow

Waterfall · Revenue to Free Cash Flow

+$7.56BRevenue+$2.86BAdj. EBITDA+$2.90BOp. Cash Flow+$1.72BNet Income-$1.16BCapEx

Key P&L Ratios

EBITDA Margin 37.8%
Operating Cash Margin 38.3%
Net Income Margin 22.8%
FCF Margin N/A
CapEx / Revenue 15.3%

N/A

Free Cash Flow Generated

Balance Sheet & Leverage

Capital Structure

  • Equity $12.18B
  • Long-Term Debt $3.28B
  • Short-Term Debt $539.67M
  • Cash & Equivalents $3.64B

Leverage & Coverage

Net Leverage Ratio 0.06x
Debt / Equity 0.31x
Debt Coverage (OCF) 9.75x
Interest Expense N/A
Next Debt Maturity 2028
Cash Runway 60 months

$178.48M

Net Debt (Strong)

Cash Uses & Returns

  • Capital Expenditures $1.16B
  • Dividends Paid $273.32M
  • Share Buybacks $0.00
  • Interest Expense $0.00
  • Debt Repayment / Other $1.47B
Total OCF $2.90B

Profitability & Returns

Returns

ROE 14.1%
ROA 12.5%
ROIC (NOPAT-lite) 13.9%

Margins

Gross Margin —
Operating Margin —
Net Margin 22.8%
EBITDA Margin 37.8%

Liquidity & Coverage

Current Ratio —
Quick Ratio —
Interest Coverage —

Yield

FCF Yield 0.40%

Valuation

Valuation Multiples

EV/EBITDAD/E ×10
EV / EBITDA
5.92x Excellent
FCF Multiple
N/A
P / NAV
N/A
Resource Value Ratio
N/A
EV / Resource Oz
N/A
Implied Gold Price
$547/oz
Offtake Status Direct sales to refineries and traders

Share Structure & Ownership

Share Structure

403.92M Fully Diluted
  • Outstanding 398.92M 398.92M
  • Options 3.00M 3.00M
  • RSUs 2.00M 2.00M
  • Warrants 0.00 0.00
Current Overhang 1.3%
Oz / Share (Diluted) 0.240
Buyback Authorized $0.00

Per-Share & Buyback Metrics

Revenue / Share $18.96
Cash / Share $9.13
Shares Outstanding (Basic) 398,923,913
Fully Diluted Shares 403,923,913
Current Overhang 1.25%
Oz Au / Share (Basic) 0.250 oz
Oz Au / Share (Diluted) 0.240 oz
Buyback Authorization $0.00
Buybacks Completed N/A

$0.00

Remaining Buyback Capacity

Health Indicators

Strength across all solvency and liquidity metrics

Debt-to-Equity
0.31x Strong

31.0% of 1.0x threshold

Net Leverage Ratio
0.06x Strong

2.0% of 3.0x threshold

Debt Coverage Ratio
9.75x Strong

100.0% of 3.0x target

Cash Runway
60 months Strong

100.0% of 48 months target

Share Dilution
1.3% Low

8.3% of 15% threshold

Data as of Jul 8, 2025 · updated Jul 12, 2026

Asset Pipeline

Jurisdiction Exposure

Geographic distribution of mining properties · Equal-weighted (no NPV data)

0%LOWER-RISKTier 1+2
  • Mexico
    100.0% · Tier 3 · 6 properties

Operating Mines

Distribution across development stages · Equal-weighted (no NPV data)

100%OPERATING
  • Production (Steady-State)
    83.3% · 5 Assets
  • Production (Ramp-Up)
    16.7% · 1 Asset
Operating
100%
Development
0%
Exploration
0%

Cost Structure

All-in Sustaining Cost (AISC) breakdown • Peer-leading efficiency

All-in Sustaining Cost
$1,140
per ounce of silver
Current Silver Price
$1,026 USD/oz
↑ $4,297 operating margin per oz
$798
$171
$171
Total Cash Costs
$798/oz • 70%
Sustaining Capital
$171/oz • 15%
Reclamation & Other
$171/oz • 15%
Industry-leading AISC creates $4,297 margin per ounce at current silver prices
Adjusted AISC
$1,311.19
Break-even Price
$1,311.19
Profit Margin
76.0%
Cost Quartile
Q2 (Low)
Padding Analysis
Padding %
15.0%
Padding Breakdown
basePadding: 15.0% | silverAdjustment: 0.0% | debtAdjustment: 0.0%
AISC Breakdown
mining
$456.01
processing
$342.04
g_and_a
$91.18
royalties
$56.96
sustaining_capex
$170.99
reclamation_other
$22.96
Reporting Period
Q3 2025 Annualized
Source
Company Quarterly Reports, Fitch Ratings

Information

Key Information

Legal Entity

Industrias PeñOles S A B De C V

Sector

Precious Metal

Employees

15,611

Reporting Currency

MXN

Contact Phone

52 55 5279 3000

Headquarters Address

Calzada Legaria No. 549 , Mexico City , DF 11250 , MX

Commodity Portfolio

AU Gold Primary
AG Silver Primary
PB Lead Byproduct
ZN Zinc Byproduct

Liquidity

Normal liquidity
Avg dollar volume (50d)
—
Last trade date
Oct 9, 2026
Days since last trade
3
Last evaluated
Oct 12, 2026 10:30 PM

Stock Exchanges

IPOAF OTC • USD
IPOAF:OTCMKTS

Organization

Management Team

Rafael Rebollar González

Chief Executive Officer

Mines built: 1

Insider Ownership

0.01%

Mauricio Ivan Garcia Torres

Chief Financial Officer

Insider Ownership

0.01%

Mr. Benito Noguez Alcantara

Vice President, Exploration

Insider Ownership

0.00%

Industry Partnerships

MAG Silver Corp

Joint Venture

Project: Juanicipio

Ownership: 43.0%

Source: MAG Silver filings, Fresnillo plc reports

Partner Market Cap

$1.50B

Chart

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Videos

Questcorp Mining ($QQQ | $QQCMF) CEO on Drilling a High-Grade Gold Project in Mexico

Questcorp Mining ($QQQ | $QQCMF) CEO on Drilling a High-Grade Gold Project in Mexico

SmallCap Asia | 亚洲小盘股
about 2 months ago

Key Highlights

brief
  • The guest notes Peñoles (referred to as 'Pinoles' in the transcript) was a small operator in the 1950s that mined high-grade oxide gold at the surface of what is now Questcorp's La Union project, with roughly 50,000 ounces historically produced.
  • The guest states Peñoles is now a multi-billion dollar market cap company.

An undrilled high-grade CRD target in Mexico's Sonora Belt, La Union is Questcorp's flagship — the CEO argues it could grow into a major polymetallic deposit. Questcorp is fully funded for a 2,000-meter drill program at La Union, targeting zones near Peñoles's historic 1950s oxide workings. With ~$10M CAD market cap and ~80% of ~100M shares in friendly hands, a discovery at La Union could re-rate Questcorp quickly. Questcorp's Vancouver Island asset sits beside the former BHP mine, where the CEO notes a peer grew from under $10M to over $1B on drilling. Questcorp must spend ~$5.5M on La Union over four years; the CEO says ~$3M is already spent, putting the project ahead of schedule.

Questcorp Mining ($QQQ | $QQCMF | D910): Mexico Gold Drilling Underway, Canada Copper Asset Up Next

Questcorp Mining ($QQQ | $QQCMF | D910): Mexico Gold Drilling Underway, Canada Copper Asset Up Next

Nordic Funds
4 months ago 16:23

Phase two drilling is underway at La Union with Riverside operating, targeting at least 1,500 more metres and September assays. First-phase drilling hit 42 metres at 0.3 g/t gold, with chip channel samples returning 226 g/t silver. A four-year earn-in lets Questcorp take up to 100% of La Union by meeting raise, spend, and share-issuance milestones. The CEO sees Mexican permitting momentum — peers winning permits — as a tailwind that could drive regional M&A. North Island Copper in Tier-1 British Columbia offers large-scale copper upside, with permitting targeted by year-end or early 2027.

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