Fresnillo Profit Triples on Higher Metal Prices

Fresnillo's profit more than tripled in the first half of the year due to higher gold and silver prices, offsetting declines in production at its Mexican operations.

The company reported revenue of US$3.38 billion, a 74.7% increase from the same period last year. Attributable silver production fell 11.4% to 22Moz, while gold production dropped 7.3% to 290,900oz.

CeO Octavio Alvídrez attributed the earnings surge to stronger realized prices for silver and gold, rather than higher volumes. The resulting cash position allowed Fresnillo to fund its January acquisition of Probe Gold, continue capital spending, and exploration while preserving a strong balance sheet.