Fresnillo’s half-year profit slumps on lower gold output

Juanicipio project (Credit: Fresnillo)

Miner Fresnillo said on Tuesday its half-year profit fell by more than a third due to lower gold output and a dip in silver prices, sending the company’s shares down more than 7%.

The London-listed company, whose stock was the top loser on the FTSE 100 index, also warned of a hit from inflation and supply-chain bottlenecks in the coming months.

Gold production sank 28% to 308,800 ounces in the first half because of lower ore grades and a fall in the volume of ore processed at Fresnillo’s Herradura and Saucito mines in Mexico.

Core profit for the six months ended June 30 fell 38.5% to $459.1 million. The drop also reflected a nearly 14% decline in average realised silver price to $22.8 per ounce.

(By Muhammed Husain; Editing by Aditya Soni)

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