StockMarketWire.com - Mining company Fresnillo reported higher profit in the first half of the year as rising metal prices bolstered performance.

For the six months to 30 June 2021, pre-tax profit rose 248.3% to US$445.4 million and revenue was up 39.1% to US$1,466.8 million.

About 75.8% of increase in revenue was due to 'higher metal prices and 24.2% due to increased volumes,' the company said.

First half attributable silver production was up 2.7% to 27.5m ounces.

An interim dividend of 9.90 US cents per share, totalling US$73.0 million was declared, up from 16.9 million last year.

'We remain on track to meet our 2021 full year guidance of 53.5 to 59.5 moz of silver (including Silverstream) and 675 to 725 koz of goldm; the company said.

'Exploration expenses are expected to remain within the range of US$175-US$180 million, of which approximately US$15 million is anticipated to be capitalised,' it added.

'The group has reduced its estimated capex from US$680 million to approximately US$580 million to reflect the lower rate of capital deployment at our different mines and projects.'


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