Fresnillo profits soar following record metals output

Fresnillo profits soar following record metals output

Mexican precious metals miner Fresnillo (LSE:FRES) has posted a reported profit of US$425 million for the year up to December, a more than six-fold increase on its $69.4 million earnings in the previous year.

This significant profit rise has been driven by a ramped-up overall output over 2016, delivering record gold and silver production across its mining facilities.

The firm produced 50.3 million ounces of silver, an increase of 7% on 2015, while gold production reached 935,515 ounces, rising 22.5% on the previous year and exceeding revised guidance.

Increased annual profits were also shaped by higher metal prices, lower costs and the devaluation of the Mexican Peso, which meant Fresnillo was able to more than double its cash generation from its mines.

Chief executive Octavio Alvídrez said: “Our performance in 2016 again demonstrated the quality of our asset base and our low-cost and flexible operations.

“I am confident that with our focus on operational delivery, disciplined approach to investment and clear commitment to sustainable business practices, we can continue to optimise our performance and maintain our strong financial position.”