Fresnillo announces their dividend policy remains unchanged. They aim to pay out 33-50% of profit after tax each year, while making certain adjustments to exclude non-cash effects in the income statement. Dividends are paid in the approximate ratio of one-third as an interim dividend and two-thirds as a final dividend. Before declaring a dividend, the Board carries out a detailed analysis of the profitability of the business, underlying earnings, capital requirements and cash flow. Their aim is to maintain enough flexibility to be able to react to movements in precious metals prices and seize attractive business opportunities.
They declared an interim dividend of 2.6 US cents per share, with a final dividend of 11.9 US cents per share, bringing the total for the year to 14.5 US cents per share.
Other financial highlights include:
Adjusted revenue of US$2,270.2 million, up 1.2% over 2018, due to higher gold and silver prices.
Profit margins decreased but remained at healthy levels. Gross profit and EBITDA down 40.9% and 26.3%, to US$461.7 million and US$674.0 million respectively.
Profit from continuing operations of US$171.7 million, down 66.1%.
Capex of US$559.3 million, down 16.4% primarily due to the commissioning of several projects including the pyrites plant at Saucito and the dynamic leaching plant at Herradura in 2018.
Strong balance sheet and low leverage ratio; cash and other liquid funds of US$336.6 million, down 40.0% mainly due to the high level of capex and dividends albeit being lower 16.4% and 52.3% respectively vs. 2018.