Fresnillo gross profits double as metal prices jump
By Benjamin Chiou
Date: Wednesday 29 Jan 2025
(Sharecast News) - Precious metals miner Fresnillo met guidance with silver output in 2024 and marginally beat expectations with gold production, with full-year profits more than doubling as costs fell and commodity prices jumped.
Gross profits are expected to be within the range of $1.2bn-1.3bn, up more than 135% on 2023, while profits from continuing operations should come in between $930m-950m, up more than 500%, the company said in a fourth-quarter production report.
The average realised gold and silver price jumped 25.3% and 21.7% last year, respectively, while zinc and lead prices rose 8.7% and 2.7% respectively.
"I am pleased to report another solid year of production, in line with, or in the case of gold, slightly ahead of the guidance we gave at the start of the year. The result highlights our efforts to drive consistency and resilience across our portfolio," said chief executive Octavio Alvídrez.
Silver output totalled 56.3m ounces, unchanged on 2023 but in line with the 55m-62m ounces target. Silver production over the fourth quarter was down 5.1% at 13.7m as production at San Julián DOB wound down as the mine approached the end of its life, while ore grades at Juanicipio fell.
Full-year gold production was up 3.4% on 2023 at 631.6k ounces, slightly ahead of the 580k-630k guidance, helped by fourth-quarter output surging 30.1% to 203.9k ounces.
Fourth-quarter volumes of lead and zinc both declined but still rose 14.8% and 8.3% for the full year as a whole, respectively.
Fresnillo's share price was up 2% at 670p in early deals on Wednesday.
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