Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Mining company Fresnillo reported that profit doubled in the first half of the year as rising metal prices and lower costs boosting performance.
For the half year ended June 30, pre-tax profit rose 136.6% to US$127.9m and revenue was up 5.3% to $1.12bn.
The jump in profit was mainly driven by higher gold and silver prices, though was partly offset by lower volumes of gold and silver sold and the decrease in zinc and lead prices.
Silver production fell 2.7% to 26.8 moz, and gold production was down 11.8% to 381.3 koz.
The average gold price increased 27% to US$1,676.8 per ounce, while the average silver price increased 10.1% to US$16.8 per ounce.
The interim dividend declared was 2.3 US cents per share.
Looking ahead, the company reiterated its guidance from 22 July for a decrease in gold production.
2020 silver production guidance was expected in the range of 51-to-56 moz, while gold production was expected to be in a range of 785-to-815 koz, down from previous guidance of 815-to-900 koz.