Fresnillo shares slide on plunging profit
Shares in miner Fresnillo fell this morning after it announced a plunge in pre-tax profit of 63 per cent.
The company cut its production forecast four times last year, as it grappled with lower quality ore and construction delays at its Herradura mine in Mexico.
Pre-tax profit fell 63 per cent to £178m and revenue grew less than one per cent to £2.1bn.
“Twenty Nineteen was a more challenging year as expected, but we remain determined and optimistic for the future,” chief executive Octavio Alvidrez said.
Total silver production fell 11.6 per cent as a result of lower ore grade at Saucito and lower than expected ore grades at Fresnillo and San Julián Veins.
Gold production also fell due to lower production at Noche Buena and a lower ore grade at San Julian Veins.
The company said today it expected production to stabilise this year and increase next year.
“We will rise to the immediate challenges confronting our business today, and we move forward with certainty and vigour. Our assets are of high quality and our exploration pipeline continues to confirm promising prospects. We have a clear strategy, a talented and committed team, and we look ahead with confidence,” Alvidrez said.
The company’s shares, which fell about 26 per cent in 2019, slipped 4.4 per cent to 592p in early trading.