Fresnillo Says Its Profit Surges 82% as Silver Prices, Production Advance
Aug. 3 (Bloomberg) -- Jaime Lomelin, chief executive officer at Fresnillo Plc, talks about the outlook for silver and gold. The world's third-largest silver producer said first-half profit rose 82 percent after output and prices of the precious metal increased. Lomelin speaks from London with Maryam Nemazee on Bloomberg Television's "Countdown." (Source: Bloomberg)
Fresnillo Plc, the world’s third- largest silver producer, said first-half profit surged 82 percent after output and prices of the metal increased.
Net income jumped to $220.7 million from $121.1 million a year earlier, the company said in a statement today. Sales rose 49 percent to $636.3 million. Fresnillo declared an interim dividend of 9.2 cents a share, up from 5.25 cents.
The company, based in Mexico City, said its average realized silver price gained 29 percent to $17.93 an ounce in the half. Silver for immediate delivery has risen for six straight quarters, its best run since 1980. Fresnillo, which produced 19.1 million ounces of the metal in the first six months, is targeting annual output of about 38 million ounces.
“As the global economy recovers there is going to be more consumption of silver,” Chief Executive Officer Jaime Lomelin said in a Bloomberg Television interview. He forecast silver prices will hold between $17 and $19 in the second half.
Silver output will rise about 10 percent in 2011 while gold production will climb 12 percent to 13 percent, Lomelin told reporters at a separate briefing.
Fresnillo rose 12 pence, or 1.1 percent, to 1,070 pence at the 4:30 p.m. close in London. Silver advanced 0.9 percent to $18.53 an ounce.
To contact the reporter on this story: Thomas Biesheuvel in London tbiesheuvel@bloomberg.net
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