Mexican Gold/Silver Miner Fresnillo Reports Sharp Drop in Profits

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Mexican precious metals miner Fresnillo PLC suffered a sharp fall in first-half profits thanks to a drop in gold and silver prices this quarter.

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Fresnillo, the world’s largest silver producer by output, said its first-half net profit fell to $130.1 million from $144.8 million in the previous year, a 10.2% fall. While its silver production was steady, gold output fell 18.9% following problems at two its main mines, though Fresnillo maintained its full-year production forecasts.

The company’s revenue fell 26.9% to $677.1 million, thanks mainly to a 17.9% fall in silver prices and a 11.5% fall in gold prices.

Japanese silver had the largest decline on Thursday, August 7, dropping 2.1 percent and landing at JPY 651.00 ($6.37) per 10 grams. Following a 1.3 percent rise yesterday, the price of US silver closed at $20.00 per ounce. The price of Indian silver is back up, rising by 0.9 percent on Thursday to close at INR 44,780 ($729.29) per kilogram. After falling for two days, the price of Chinese silver rose 0.5 percent to CNY 4,275 ($693.62) per kilogram.

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Indian gold bullion finished the day up 1.3 percent to INR 28,549 ($464.95) per 10 grams. US gold bullion prices rose 1.3 percent to $1,306 per ounce. Chinese gold bullion gained 1.0 percent to finish at CNY 259.10 ($42.04) per gram. At JPY 4,262 ($41.73) per gram, the price of Japanese gold bullion was essentially unchanged.

The price of US platinum bar rose 0.7 percent to $1,459 per ounce after a two-day drop. Japanese platinum bar closed 0.4 percent lower at JPY 4,826 ($47.25) per gram. The price of Chinese platinum bar remained essentially flat at CNY 307.00 ($49.81) per gram.

The price of Chinese palladium bar fell 0.5 percent to CNY 188.00 ($30.50) per gram. Following a two-day drop, the price of US palladium bar increased by 0.4 percent to $846.00 per ounce. The price of Japanese palladium bar held steady at JPY 2,855 ($27.95) per gram.

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