Industrias Peñoles (BMV: PE&OLES) is Mexico's largest silver producer and one of the world's top precious metals miners, producing silver (~60M troy oz/year — world #1 refiner), gold, zinc and lead from underground mines. For cyclical investors, PE&OLES offers combined exposure to the precious metals cycle (gold and silver) and the zinc industrial metals cycle — a unique multi-metal play. Current gold $4,493/oz is a STRONG SELL.
Historical Cycle Returns
| Cycle | Entry signal | Buy | Sell | Return | Duration |
|---|---|---|---|---|---|
| COVID gold surge | Gold $1,500/oz (2020) | MXN 280 | MXN 650 | +132% | 18 months |
| GFC safety | Gold $900/oz (2009) | MXN 80 | MXN 350 | +338% | 24 months |
| Zinc supercycle | Zinc $1,600/t (2016) | MXN 200 | MXN 480 | +140% | 20 months |
Silver — The Dual-Nature Driver
Peñoles is the world's largest silver refiner (~60M troy oz/year). Silver tracks gold in risk-off environments but also has industrial demand from solar panels, electronics and EV charging — making it sensitive to both precious metal and industrial cycles simultaneously.
Zinc — The Industrial Diversifier
Peñoles produces ~600,000 tonnes of zinc/year — one of the world's top five producers. Zinc demand tracks galvanised steel (construction, automotive) and PMI. When PMI expands, zinc prices rise alongside silver — reinforcing Peñoles' earnings from two directions.
Key Data
| Metric | Value |
|---|---|
| Exchange | BMV Mexico |
| Ticker | PE&OLES |
| Primary signals | Gold + Silver + Zinc |
| Silver production | ~60M troy oz/year (world #1 refiner) |
| Zinc production | ~600,000 tonnes/year |
| Best cycle return | +338% (GFC safety) |
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Join the Waitlist →Frequently Asked Questions
What metals does Peñoles produce?
Silver (world's largest refiner), gold, zinc and lead. Also has an interest in the Fresnillo silver mine. The metal mix gives exposure to both precious and industrial cycles.
What is the relationship between Peñoles and Fresnillo plc?
Fresnillo plc (LSE: FRES) was spun off from Peñoles in 2008 and is listed in London. It operates the Fresnillo silver mine in Zacatecas. The two companies are related but separately listed.
How is silver different from gold as a signal?
Silver is more volatile and more industrially exposed. It tends to outperform gold in late-cycle inflationary environments and underperform in early recession. Peñoles' silver concentration amplifies cycle returns versus pure gold miners.