LONDON (ShareCast) - (Sharecast News) - Mining firm Fresnillo posted a solid set of interim results on Tuesday, with higher precious metal prices and disciplined cost control driving a sharp improvement in profitability.
Fresnillo said robust gold output and operational efficiencies had helped offset weaker silver volumes and a non-cash hit of $133m after tax from the termination of its Silverstream contract.

Revenues rose 30.1% year-on-year to $1.93bn, while underlying earnings more than doubled, and net profits surged 297.3% to $467.6m, supported by a 16.7% drop in cost of sales and a 20% reduction in production costs.

Gold production climbed 15.9%, led by a strong performance at its Herradura mine, while silver output fell 11.7% due to mine closures and lower grades.

Fresnillo declared an interim dividend of USD 20.8 cents per share, up from USD 6.4 cents last year and raised its FY gold guidance but trimmed its silver outlook.

CEO Octavio Alvídrez said: "Our profitability has significantly improved, driven not only by favourable precious metals prices but also by a consistent operational performance and rigorous cost discipline. This has led to a substantial free cash flow generation. Our balance sheet remains robust, with ample liquidity, allowing us to declare an interim dividend of USD 20.8 cents per share in line with our policy."









Reporting by Iain Gilbert at Sharecast.com

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