Fresnillo slumps after low prices and legal issues knock its results
FRESNILLO’S share price nosedived nine per cent in early trading yesterday, after the Mexico-focused miner reported a 64.4 per cent decline in full-year profits due to legal issues and lower metal prices.
The FTSE 100-quoted company said gold production had declined by 10 per cent after legal proceedings halted operations at the Soledad-Dipolos mine and triggered an explosives ban at the Herradura mine.
“This, combined with lower precious metals prices, impacted our financial results,” said chief executive Octavio Alvidrez.
Pre-tax profits fell to $418.7m, while revenue fell 25.1 per cent to $1.62bn.
Shares settled later in the day and closed down 4.69 per cent.