31st Jul 2018 08:35
LONDON (Alliance News) - Mexican miner Fresnillo PLC on Tuesday boosted its gold output guidance for 2018 as both interim gold and silver production rose year-on-year.
For the six months to June, FTSE 100-listed Fresnillo's gold output increased 4.4% to 465,299 ounces, while silver production was up 9.7% to 30,764 ounces.
Fresnillo has also revised its 2018 production guidance. It now expects gold production between 900,000 and 930,000 ounces, having previously guided for between 870,000 to 900,000 ounces of gold.
However, silver production guidance is now lower than before, cut to between 64,500 and 67,500 ounces from the prior range of 67,000 to 70,000 ounces.
Revenue for the six months to June came in a USD1.12 billion, compared to USD995.8 million a year earlier, helped by higher volumes and prices.
Pretax profit was USD344.8 million from USD332.6 million, suffering due to the Mexican peso to dollar exchange rate, while exploration expenses rose 22% to USD78.3 million.
Fresnillo marginally increased its interim dividend, to 10.7 US dollar cents from 10.6 cents.
Fresnillo said its "solid" operating performance in the period was due to a contribution from its San Julian silver operations as well as higher gold output at its Herradura mine in Sonora state.
Chief Executive Octavio Alvidrez commented: "I am pleased to report a robust performance in the first half, with silver and gold production both up in the period, and our new San Julian mine making a strong contribution to overall production, while gold production at Herradura continues to outperform.
"In line with our strategy to actively manage and strengthen our asset portfolio, we are making good progress on the broader development pipeline which continues to provide a strong foundation for long term sustainable growth."
He continued: "Once again we have maintained an extensive exploration programme during the first half and remain confident these proactive activities will provide a solid foundation on which our long term future growth will be built."
Shares were 2.0% higher early Tuesday at a price of 1,016.50 pence each.
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