Fresnillo shares dropped 5.5% to 687.8p in late morning trading on Tuesday after the miner’s HY1 revenue spiralled 14.2% to $1.2 billion.
Fresnillo highlighted an adjusted revenue fall of 12.6% to $1.3 billion, and attributed 91% of its decline to lower gold volumes and 9% to lower silver prices.
The FTSE 100 miner reported a gross profit drop of 39.7% to $365.9 million and an EBITDA slide of 38.5% to $459.1 million.
The company also mentioned a 53.8% fall in profit from continuing operations before net finance costs and income tax to $218.2 million, and a pre-tax profit decrease of 65.1% to $155.2 million.
Fresnillo confirmed a profit tumble of 54.3% for HY1 to $141 million.
Meanwhile, the firm highlighted a free cash flow of $93.5 million against $305.1 million the year before, and a 38.8% decline in cash generated from operations before changes in working capital to $459.5 million.
The mining group noted a strong balance sheet with cash and other liquid funds of $1.1 billion.
The company said it expected exploration costs of $180 million in FY 2022, with $10 million predicted to be capitalised.
“We benefit from a consistent strategy, exceptional assets, an exciting growth pipeline and a very strong balance sheet,” said Fresnillo CEO Octavio Alvídrez.
“We are well placed to deliver on our objectives this year. We look forward with determination and confidence.”
Fresnillo announced an interim dividend of 3.4c per share, representing a decrease of 65.7% from 9c in HY1 last year.
