Fresnillo 2015 final results

DividendMax Ltd.

Fresnillo 2015 final results

2015 Highlights

Robust balance sheet and healthy profit margins support strong financial position

Adjusted revenue of US$1,583 million, 2.5% increase on 2014 as higher volumes more than offset lower metal prices

Gross profit and EBITDA of US$433.1 million and US$547.5 million, down 16.9% and 3.5% respectively

Profit from continuing operations of US$200.4 million, down 18.4%

Devaluation of the Mexican peso  vs. US dollar positively affected production costs, but also resulted in increased deferred taxes with a negative impact on effective tax rate

Net cash from operating activities was US$542.9 million vs US$121.6 million in 2014

Capital expenditures of US$474 million and exploration spend of US$140 million

Maintained financial flexibility, with year-end cash balance of US$500.1 million and net debt position of US$296.9 million at 31 December 2015

Basic and diluted EPS from continuing operations of US$0.094; adjusted EPS of US$0.069, down 36.1% and 6.8%

2015 final dividend of 3.35 US cents per share, equivalent to approximately US$24.7 million, recommended by the Board

The consolidated income statement for the year was significantly impacted by certain foreign exchange effects, gold hedging and the Silverstream revaluation. Adjusting for these effects1, would result in EBITDA of US$576.1 million (2014: US$568.4 million) and profit for the year of US$131.0 million (2014: US$134.4 million).

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