Fresnillo (FRES)

Sector:

Mining

Index:

FTSE 100

616.40p
   
  • Change Today:
      6.80p
  • 52 Week High: 1,027.50
  • 52 Week Low: 600.00
  • Currency: UK Pounds
  • Shares Issued: 736.89m
  • Volume: 2,032,334
  • Market Cap: £4,542.21m
  • Beta: 0.00

Fresnillo bumps up gold production targets after first half

By Josh White

Date: Tuesday 31 Jul 2018

LONDON (ShareCast) - (Sharecast News) - Fresnillo issued its interim results for the six months ended 30 June on Tuesday, reporting an 11.3% improvement in adjusted revenue to $1.19bn.
The FTSE 100 precious metals miner said gross profit and EBITDA were of $502.2m and $566.9m - increases of up 9.2% and 8.5% respectively.

Silverstream valuation - a non-cash item - had an adverse effect on profit before income tax, which came down 16.6% to $323.0m, the board said.

In addition, profit for the period of $229.3m - a drop of 26.1% - was adversely impacted by changes in the Mexican peso - dollar exchange rate, and the inflation rate on deferred taxes.

Basic and diluted earnings per share from continuing operations were 31.2 US cents per share, and adjusted earnings per share fell to 33.3 cents per share - decreases of 25.5% and 9.3% respectively.

Cash generated from operations, before changes in working capital, rose 6.6% to $575.9m, and net cash from operating activities was ahead 3.5% at $366.6m.

Fresnillo said it had a "strong" balance sheet, with cash and other liquid assets as at 30 June of $708.6m.

The board declared an interim dividend of $78.8m, or 10.7 cents per share.

"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 Julián phase II mine making a strong contribution to overall production, while gold production at Herradura continues to outperform," said chief executive Octavio Alvídrez.

"We have marginally adjusted full year production guidance to reflect a stronger performance in gold and short term challenges at our silver operations though consolidated guidance remains unchanged."

On the operational front, Fresnillo said silver production was 30.8 moz for the period, including Silverstream, which was an increase of 9.7%, while gold production rose 4.4% to 465 koz.

It said ongoing tests at the Herradura leaching pads had resulted in an increase of 98.9 koz of gold in inventory as of 1 January.

Full-year consolidated production guidance was revised marginally, with total gold production upped to between 900 koz and 930 koz from 870 koz to 900 koz, and total silver production dropped to between 64.5 moz and 67.5 moz from 67 moz to 70 moz, including Silverstream.

The Pyrites plant at Saucito was commissioned with minimal delays and on budget, the board claimed.

It said final testing of the second line of the dynamic leaching plant was "on track", with commercial production expected in the third quarter.

"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," Octavio Alvídrez added.

"The Pyrites Plant at Saucito has been commissioned and final testing at the Second Dynamic Leaching Plant is on track. Both projects will make a meaningful contribution to overall 2018 production.

"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. We continue to believe the vast potential of our exploration pipeline is a core differentiators for Fresnillo."

Looking ahead, Alvídrez said Fresnillo remained "confident" in its full year expectations.

"We will continue to maintain this disciplined approach to investment, to support our strategy and deliver shareholder returns.

"We are focused on efficiency and controlling costs to underpin projects, while driving performance improvements at our mines."

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Fresnillo Market Data

Currency UK Pounds
Share Price 616.40p
Change Today 6.80p
% Change 1.12 %
52 Week High 1,027.50
52 Week Low 600.00
Volume 2,032,334
Shares Issued 736.89m
Market Cap £4,542.21m
Beta 0.00

Fresnillo Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
52.56% below the market average52.56% below the market average52.56% below the market average52.56% below the market average52.56% below the market average
94.92% below the sector average94.92% below the sector average94.92% below the sector average94.92% below the sector average94.92% below the sector average
Price Trend
70.86% below the market average70.86% below the market average70.86% below the market average70.86% below the market average70.86% below the market average
34.4% below the sector average34.4% below the sector average34.4% below the sector average34.4% below the sector average34.4% below the sector average
Income
63.42% below the market average63.42% below the market average63.42% below the market average63.42% below the market average63.42% below the market average
82.61% below the sector average82.61% below the sector average82.61% below the sector average82.61% below the sector average82.61% below the sector average
Growth
29.1% below the market average29.1% below the market average29.1% below the market average29.1% below the market average29.1% below the market average
80.33% below the sector average80.33% below the sector average80.33% below the sector average80.33% below the sector average80.33% below the sector average

What The Brokers Say

Strong Buy 5
Buy 0
Neutral 10
Sell 0
Strong Sell 0
Total 15
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Fresnillo Dividends

  Latest Previous
  Interim Final
Ex-Div 08-Aug-19 25-Apr-19
Paid 06-Sep-19 24-May-19
Amount 2.60¢ 16.70¢

Trades for 17-Oct-2019

Time Volume / Share Price
16:35 480,630 @ 616.40p
16:29 67 @ 617.00p
16:29 172 @ 616.60p
16:29 35 @ 616.80p
16:29 89 @ 616.80p

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