Fresnillo Sees Sustained Precious-Metals Rally as Profit Doublesby
First-half profit climbs to $165.5 million as revenue up 18%
Silver price has rallied 49% to near highest since July 2014
Fresnillo Plc, the world’s biggest primary silver producer, said precious-metal prices have bottomed and the recovery has been faster than it expected.
“We are enjoying higher metal prices; we’ve definitely hit the bottom” Chief Executive Officer Octavio Alvidrez said on a call with reporters Tuesday. “We believe prices that could continue at these levels.”
Silver has rallied 49 percent this year and is near the highest since July 2014, while gold has also advanced. Prices have surged on demand for a haven and as central banks around the world pledged more stimulus to bolster economies following Britain’s vote to exit the European Union.
First-half profit for Fresnillo, which mines in Mexico, more than doubled to $165.6 million from a year earlier as prices rose and it cut costs, the producer said in a statement. Revenue jumped 18 percent to $886.9 million. The company said it will pay an interim dividend of 8.6 cents a share.
Fresnillo gained 1.6 percent to 1,953 pence by 8:42 a.m. in London. The stock has jumped 176 percent this year and is the best performer in the benchmark FTSE 100 Index after Anglo American Plc.