Fresnillo profit soars 82%

3rd Aug 2010 07:11

Mexico based precious metal miner Fresnillo said high silver and gold prices helped it post an 82% surge in half year net profit and it is on track to reach its gold and silver production targets for the full year. Net attributable profit rose to $220.7m for the six months to 30 June 2010 from $121.1m the same time a year earlier. The group reported revenue of $605.7m, up 59.9%. "Considering the results obtained during this first half of the year, management remains confident of delivering another year of robust operational performance, which combined with the high silver and gold prices, should continue to deliver strong financial results for the remainder of the year," Fresnillo said in a statement. Average realised silver and gold prices increased 28.8% and 27.4% respectively and it is on track to achieve full year production targets of 38moz of silver and 340,000oz of gold. While market conditions have ramped up gold and silver prices, Fresnillio said from an operating perspective, stable silver production at Fresnillo, record gold production at Herradura and increased gold ore grades and recoveries at Ciénega boosted production levels.The company said combined with the high silver and gold prices, it is confident it is well placed to deliver strong financial results by the end of the year. "With the potential to make 2010 one of the most outstanding years in Fresnillo's history," added chief executive officer Jaime Lomelin.An interim dividend of 9.20 US cents per share has been recommended, up by 75.2%.