Fresnillo hails 'strong' 2024 thanks to higher silver and gold prices
Fresnillo PLC on Tuesday said it performed well in the year just gone, citing a ‘significant’ increase in profitability, but noted it is facing challenges in the years ahead.
The Mexico-focused silver and gold miner, in a trading update for its annual general meeting, said its growth in profitability was boosted by high silver and gold prices, as well as a focus on costs.
Back in March, Fresnillo said revenue increased by 29% to $3.50 billion in 2024 from $2.71 billion in 2023, reflecting the higher silver and gold prices.
Pretax profit multiplied to $743.9 million from $114.0 million, while earnings before interest, tax, depreciation, and amortisation more than doubled to $1.55 billion from $655.7 million.
Chair Alejandro Bailleres on Tuesday said: ‘While we expect to continue facing challenges in the years ahead, the encouraging attitude towards the private sector in different industries shown by the new administration in Mexico, coupled with our own operational efficiencies and exciting project pipeline, are sources for cautious optimism.’
He added: ‘Looking ahead, there remains much geopolitical instability, but I am encouraged by a more business-friendly environment in Mexico. Overall, the long-term outlook seems positive. We anticipate that at least one of the prospects in our exploration pipeline will join our development portfolio in the coming two to three years, and expect our investments in exploration in Mexico, Chile and Peru to make good progress.
‘We also see a positive outlook for prices with demand for silver and gold increasing, largely in line with the shift towards green technologies and of course the safe haven offered by gold in these turbulent times.’
Fresnillo shares were up 0.4% to 1,030.00 pence each on Tuesday morning in London.
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