- Mining giant Fresnillo reported a rise in annual profit as precious metal prices bolstered revenue and production remained 'broadly' stable.

The company said, however, gold production would take a hit from ongoing pandemic impact in Mexico.

For the year ended 31 January, pre-tax profit rose to $551.3 million from $178.8 million year-on-year as adjuted revenue rose 14.9% US$2,608.1 million due mainly to better precious metals prices.

Total silver production remained broadly stable and within the company's guidance at 53.1 million ounces.

The company declared a final dividend of 23.5 US cents per share, bringing the total for the year to 25.8 US cents per share.

Looking ahead, the company flagged a reduction in gold output owing to the continued pandemic impact on its operations in Mexico.

'Silver volumes will rise by steadily increasing production at Juanicipio,' the company said.

'Lower ore grade at Cienega, together with a reduced activity at Noche Buena following a change to the mining sequence and the fewer available areas as the mine approaches its planned closure, as well as slightly lower volumes at Herradura, are likely to lead to reduced gold production,' it added.

The rodeo mine, which it expected to become the company's next open pit gold mine is expected to receive board approval in mid-2022.

At 8:17am: [LON:FRES] Fresnillo PLC share price was 0p at 1124p

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