(Kitco News) - Fresnillo (FRES:LSE) fell heavily this morning after the company reported adjusted revenues of $1.35bn in H1 2022. This represents a drop of 12.6% vs the previous year. The firm said the fall was due largely to a 27.6% fall in gold production, although lower silver prices added to the issues.
The report then got worse as Fresnillo said profit was down 54.3% to $141mln. Basic and diluted earnings per share from continuing operations rang in at US$15.9 cents, down 61.2%. Free cash flow was $93.5mln, and cash on the balance sheet amounted to $1.15bn. The dividend is $0.034 per share.
Fresnillo's chief executive Octavio Alvídrez said "We are on track to complete the staffing process at Fresnillo and San Julián by the end of 3Q22, and at Ciénega and Saucito by year-end, despite a tight labor market,"
He added "The global supply chain bottlenecks that so many industries are facing, together with cost inflation will have some impact in the second half. However, we are confident in our ability to weather these short-term challenges, without limiting our ambitious longer-term growth plans. We look forward to achieving connection to the electricity grid at Juanicipio in the coming weeks, and rapidly ramping up production, while also continuing to develop the Rodeo and Orisyvo mining projects."
Looking at the share price on the weekly chart below it looks like the price may return to test the previous wave low at 610.6. There is also another major zone at the red support level which represents the lowest price point since 2009.
