LONDON (ShareCast) - (Sharecast News) - Precious metals miner Fresnillo posted a jump in full-year profit and revenue on Tuesday, thanks in part to higher silver prices, but struck a cautious note on the outlook.
In the year to the end of December 2021, pre-tax profit rose 10.9% to $611.5m on revenue of $2.7bn, up 11.2% on the previous year. Earnings before interest, tax, depreciation and amortisation were up 3.2% to $1.2bn.

The company declared a final dividend of 24 cents a share, taking the total dividend for the year to 33.9 cents, up from 25.8 cents a year earlier.

Fresnillo said silver output was flat on the year at 53,095 ounces, while gold production dipped 2.4% to 751,203.

Chief executive Octavio Alvidrez said: "Looking ahead we remain alert to potential on-going challenges that are outside our control, not least possible further regulatory reform, inflationary pressures and of course the threat of new covid variants. Lower production and recovery rates at Herradura and the continuing workforce shortages at Saucito caused by the new labour reform - as well as the impact of recent geotechnical instability in the Saucito area - are also likely to add to the pressures we may face in 2022.

"In addition, the extension to the timeline for the tie-in to the national grid of both the Juanicipio plant and the Pyrites Plant mean that we now expect lower contributions than previously anticipated from these operations during 2022."

Nevertheless, Alvidrez said the groups expects its exploration pipeline to continue making good progress, particularly at the Rodeo Orysivo and Guanajuato projects.

"Precious metals prices also established what looks to be a realistic floor towards the end of the year and our view is that a period of higher prices is the most likely outcome," he added.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE