Mexican Fresnillo to pay $165 million special dividend

Mexican silver and gold miner Fresnillo’s (LON:FRES) shareholders woke up to upbeat news Thursday as the company said it will pay them a special dividend of 22.39 cents, seven months earlier than expected.

In total, Fresnillo will hand a $165 million payout, over and above its existing dividend policy, as it said the firm has more than enough cash to meet its spending plans.

The miner, which is world's largest primary silver producer, also said there has been a delay in the lifting a temporary ban on the use of explosives at its Soledad and Herradura mines.

Although Fresnillo expected the ban to be lifted this week, it said the hearing to reinstate its explosive use permit is now scheduled for early November, when the company is also set to update its overall gold production guidance for 2013.

Roberto Diaz has been appointed chief operating officer having previously been Fresnillo's vice president of Operations and vice president of Project Development.

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