The Fresnillo Board of Directors has declared an interim dividend of 9.90 US cents per share totalling US$73.0 million to be paid on 15 September 2021 to shareholders on the register on 13 August 2021. This decision was made after a comprehensive review of the Company's and Group's financial situation, as well as the Company's distributable earnings, ensuring that the Group is well placed to meet its current and future financial requirements, including its development and exploration projects.
As previously disclosed, the corporate income tax reform introduced in Mexico in 2014 created a withholding tax obligation of 10% relating to the payment of dividends, including to foreign nationals.
Historically the Company has been making dividend payments out of retained earnings generated before the tax reform came into force and no withholding tax has therefore been applied. Dividend payments relating to 2021 and future years will attract the withholding obligation. However, foreign shareholders may be able to recover such tax depending on their tax residence and the existence of double taxation agreements.
Other financial highlights include:
Adjusted Revenues of US$1,543.1m, up 37.1%; 75.8% of this due to higher metal prices and 24.2% due to increased volumes.
Gross profit and EBITDA of US$606.8m and US$747.0m, up 88.9% and 59.0%, respectively.
Operating profit and profit before income tax of US$471.9m and US$445.4m, up 117.6% and 248.3%, respectively.
Profit for the period of US$308.4m, up 445.8%.
Basic and diluted EPS from continuing operations of US$41.0 cents per share, up 365.9%.
Adjusted EPS of US$41.4 cents per share, up 250.8%.
Cash generated from operations, before changes in working capital, of US$750.4m, up 64.5%.
Free cash flow of US$305.1m in 1H21 (US$265.7m in 1H20).
Strong balance sheet with cash and other liquid funds as at 30 June 2021 of US$1,202.9m (31 December 2020: $1,070.4m); net debt/EBITDA of -0.02x (31 December 2020: 0.08x).
