The Fresnillo Plc Board of Directors has declared an interim dividend of 1.40 US cents per Ordinary Share totalling US$10.3 million, which will be paid on 14 September 2023 to shareholders on the register on 11 August 2023. The dividend will be paid in UK pounds sterling unless shareholders elect to be paid in US dollars. This interim dividend is lower than the previous period due to the decrease in profit in 1H23, and remains in line with the Group's dividend policy.
Other financial highlights include:
Adjusted Revenues of US$1,430.8m, up 6.1%; mainly due to higher gold and silver volumes sold at higher prices, partly offset by a lower zinc price.
Revenues of US$1,343.3m, up 6.7%.
Adjusted production costs of US$773.9m, up 17.4% over 1H22 primarily due to the revaluation of the Mexican peso vs. US dollar, cost inflation, additional costs from the start up of the beneficiation plant at Juanicipio and an increase in stripping recognised as costs rather than capitalised.
Cost of sales of US$1,060.6m, up 18.7% mainly as a result of the higher adjusted production costs and the effect of the consumption of inventories at Juanicipio and Noche Buena net of the reassessment of gold inventories at Herradura.
Gross profit and EBITDA of US$282.7m and US$351.0m, down 22.7% and 23.5%, respectively.
Exploration expenses of US$96.9m, up 24.7% as exploration spend was front loaded.
Profit from continuing operations before net finance costs and income tax and profit before income tax of US$81.2m and US$47.9m, down 62.8% and 69.2%, respectively.
Profit for the period of US$89.7m, down 36.4%.
Basic and diluted EPS from continuing operations of US$8.8 cents per share, down 44.7%.
Adjusted EPS of US$10.4 cents per share, down 46.4%.
Cash generated from operations, before changes in working capital, of US$322.9m, down 29.7%.
Free cash flowof US$18.7m in 1H23 (US$93.5m in 1H22).
Strong balance sheet with cash and other liquid funds as at 30 June 2023 of US$889.7m (31 December 2022: $969.1m); net debt/EBITDA of 0.42x (31 December 2022: 0.26x).
