Fresnillo posts jump in operating profits, announces special dividend

(Sharecast News) - Fresnillo posted a jump in in full-year sales and a surge in operating profits, paving the way for the precious metals miner to unveil a special dividend. "Operationally, we delivered silver production in line with guidance and gold production slightly ahead, with lead and zinc production also up strongly over the year," chief executive officer Octavio Alvídrez said.

"Meanwhile, we have made significant strides in improving efficiencies, optimising mine plans, and advancing key projects, including the full commissioning of the San Carlos shaft at our Fresnillo mine."

Revenues for the year ending in December rose by 26.9% to $3.64bn, helped by higher prices and volumes.

Yet adjusted production costs declined by 2.6% to $1.58bn, thanks to efficiencies and economies of scale, together with the devaluation of the Mexican peso against the Greenback.

Hence, earnings before interest, taxes, depreciation and amortisation more than doubled to reach $1.55bn.

Thanks to that "strong" performance, the miner announced a one-off special dividend of $308m, or 41.8 US cents per share, together with a final dividend of $192.3m or 26.1 US cents.

That took the full-year regular dividend payout to 32.5 US cents.

Net cash at period end stood at $458.3m, while cash and other liquid funds came in at roughly $1.3bn.

-- More to follow --