24th Oct 2013 08:24
LONDON (Alliance News) - Fresnillo PLC Thursday said it is paying out an extraordinary dividend to shareholders on November 11, as it promoted an executive and provided an update on the suspension of its explosives permit at certain Mexican mines.
The Mexico-focused gold and silver mining company said it is paying out an extraordinary dividend of USD165.0 million or 22.39 US cents per share to its shareholders In November.
The company said the dividend will include some payments that shareholders may have expected to receive in 2014 and is being provided due to its strong balance sheet and ability to meet capital expenditure plans for development and exploration projects.
Fresnillo also said it has promoted Roberto Diaz to Chief Operating Officer. Diaz had been Fresnillo's vice president of operations and project development.
The company also said that the Ejido agrarian community in Mexico has presented legal proceedings in order to impede the lifting of a temporary suspension of the company's explosives permits at the Dipolos mine, along with the Herradura and Soledad mines.
Fresnillo were initially suspended from using explosives at the site while the government investigated a complaint by the local community. Following a review, the ban was lifted at its Noche Buena site, but the Ministry of Defence sought further clarity before suspending the permit at the Soledad and Herradura sites which are closer to the agrarian community.
The Ejido community has obtained a temporary stay order in its favour, pending a review by the court of the underlying merits of the case and the initial hearing is expected in early November.
Fresnillo shares were up 0.5% to 998.69 pence in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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