Fresnillo plc announced a final dividend of 4.2 US cents per share, amounting to US$30.9 million. This is in addition to the 2023 interim dividend of 1.40 US cents per share, amounting to US$10.3 million, which was paid in September 2023 and represented 1/3 of the expected total dividend for 2023. This brings the total dividend for the year to 5.6 US cents per share, amounting to US$41.2 million.
Other financial highlights include:
Higher gold and silver prices offset by the dual impact of inflation and the revaluation of the Mexican peso
Adjusted revenue increased 10.5% vs 2022 due to higher volumes of silver sold, and to a lesser extent, the increase in volumes of lead and zinc sold, combined with the higher gold and silver prices.
Revenue increased 11.2% year-on-year to US$2,705.1 million due to the increase in adjusted revenue, partly offset by higher treatment and refining charges.
Adjusted production costs increased 12.3% vs 2022 to US$1,624.1 million. This was primarily driven by the adverse impact caused by the revaluation of the Mexican peso/US dollar exchange rate which, on average, appreciated 11.7%, along with 3.9% in cost inflation, the additional costs from the start-up of the flotation plant and ramp up of the mine at Juanicipio and the start-up of the pyrites plant at Fresnillo.
Gross profit and EBITDA decreased to US$503.2 million and US$655.7 million, a 6.1% and 12.7% decrease vs 2022 respectively.
Exploration spend increased 10.0% to US$182.4 million, in line with our strategy to intensify exploration activities in specific target areas.
Profit from continuing operations before net finance costs and income tax of US$114.0 million, down 54.1% as a result of lower gross profit and higher administrative and exploration expenses.
Profit for the year attributable to equity shareholders of the Group of US$233.9 million, down 14.0% on 2022 mainly due to the lower profit from continuing operations offset by tax income for the period of US$205.0 million, which compared favourably to the US$67.4 million tax income in 2022.
US$534.6 million in cash and other liquid funds as of 31 December 2023 notwithstanding investing US$483.4 million in capex, repaying the US$317.9 million Senior Notes due in November 2023 and paying dividends of US$108.4 million.
Net debt was US$304.4 million as at 31 December 2023. This compares to the net debt position of US$198.7 million as at 31 December 2022.
The Group signed a five-year committed revolving line of credit for up to US$350 million.
