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(Kitco News) - Fresnillo (LSE: FRES), the world's largest silver producer and Mexico's largest gold producer, announced today that its H1 2023 attributable silver production of 28.0 moz (including Silverstream) increased 1.4% from H1 2022, primarily due to the ramp-up of Juanicipio.
The company’s H1 2023 attributable gold production of 325.4 koz increased 5.4% from H1 2022 mainly due to the increased volume of ore processed and higher ore grade at Herradura and Saucito.
Fresnillo said its total revenues increased 6.7% to US$1,343.3 million in H1 2023, mainly due to the increased volumes of gold and silver sold at higher prices, partly offset by the lower zinc price.
The company added that the increase in revenues was more than offset by the rise in cost of sales, resulting in a 22.7% decrease in gross profit to US$282.7 million in H1 2023.
According to a press release, driven by a decrease in gross profit, EBITDA decreased by 23.5% to US$351.0 million in H1 2023, with EBITDA margin decreasing from 36.5% in H1 2022 to 26.1% in H1 2023.
Similarly, profit from continuing operations before net finance costs and income tax decreased from US$218.2 million in H1 2022 to US$81.2 million in H1 2023, a decrease of 62.8%.
Importantly, the company said that profit for the period decreased from US$141.0 million in H1 2022 to US$89.7 in H1 2023, a 36.4% decrease period-on-period.
Fresnillo also announced that its Board has declared an interim dividend of 1.40 US cents per ordinary share totalling US$10.3 million, which is lower than the previous period (H1 2022: dividend of 3.4 US cents per share) due to decrease in profit and in line with the company’s dividend policy.
Previously, the company reported that its 2023 guidance remains unchanged. Attributable silver production is expected to be in the range of 57.0 to 64.0 million ounces (including Silverstream) while attributable gold production is expected to be in the range of 590 to 640 thousand ounces.
Fresnillo is the world's largest primary silver producer and Mexico's largest gold producer. Fresnillo has eight operating mines, all of them in Mexico, one development project, and four advanced exploration projects, as well as a number of other long term exploration prospects. Fresnillo has mining concessions and exploration projects in Mexico, Peru and Chile.
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