Fresnillo dividend jumps as earnings rise

Fresnillo announced a jump in its interim dividend as the precious metals miner reported earnings up 59% in the first half supported by higher prices.

Earnings before interest, tax, depreciation and amortisation rose to $747m in the six months to the end of June from $470m a year earlier as revenue increased 39% to $1.47bn.

Fresnillo increased its interim dividend to 9.9 cents a share from 2.3 cents a year earlier. The total payout rose to $73m from $16.9m.

The company said its results were helped by higher metal prices and to a lesser extent more sales. The average realised silver price rose 57.3% from a year earlier to $26.4 per ounce and the average gold price increased 6.7% to $1,789.2 per ounce.

Octavio Alvídrez, Fresnillo's chief executive, said: "I am pleased to report a strong financial result in the first half. The combination of improved production performance and higher precious metals prices has seen a sharp increase in profitability during the period. This in turn, has enabled us to declare a dividend of $73m to shareholders, while continuing to invest in both our development and exploration projects."