Fresnillo reduces its 2015 interim dividend by 58%

DividendMax Ltd.

Fresnillo reduces its 2015 interim dividend by 58%

Highlights (H1 2015/H1 2014 comparisons)

Silver production of 23.8 moz (including Silverstream), up 10.6% due to increased production resulting from the start of operations at Saucito II, which offset lower production at Fresnillo

Gold production of 364 koz, up 37.0% mainly due to Herradura being fully operational post the temporary explosives permit suspension which affected 1H14 production, and the dynamic leaching plant at the mine being in operation for the full half year post its start-up in March 2014, together with increased contributions from Saucito and Noche Buena

Significantly lower realised commodity prices (silver US$16.61 per oz, down 18.0%; gold US$1,206.10 per oz, down 7.4%) impacting financial performance

Profit for the period of US$76.4m, a decrease of 44.3%

Basic and diluted EPS US$10.4 cents per share, down 41.2%

Cash generation from operations remains significant at US$314.9m, down 6.5%

Strong balance sheet maintained - cash, cash equivalents and short term investments of US$475.7m

Interim dividend of US$15.5m (2.1 US cents per share 2014 - 5 US cents) declared reflecting Board's confidence in the Company's financial position and outlook; no change to previously stated policy

Stage 1 of the San Julián project now expected to be commissioned in 1Q16 (vs. previous expectation of 4Q15). Pyrites project remains on track for production to commence in 2017

Capital expenditure for the full year 2015 now expected to be in the region of US$570m (vs. previous expectation of c. US$700m)

Positive drill results at Ciénega and Juanicipio projects will result in an increase in inferred resources 

2015 gold production guidance raised to 715-730 koz from 670-685 koz (+6.6%); full year silver production remains on track (45-47 moz, including Silverstream)

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