Fresnillo 1H Earnings Fell as Lower Gold Sales Hit Revenue — Earnings Review

- Advertisement -


By Joe Hope

- Advertisement -
- Advertisement -

Fresnillo PLC reported its first-half results on Tuesday. Here’s what we watched:

- Advertisement -

REVENUE: Revenue for the Mexican precious-metals miner came in at $1.26 billion, down from $1.47 billion a year earlier. This missed the consensus of $1.32 billion by 5%, RBC Capital Markets analyst Tyler Broda said in a research note. The company attributed the fall to lower-than-expected gold sales and silver realized prices.

EBITDA: Adjusted earnings before interest, taxes, depreciation and amortization–the company’s preferred metric–came in at $459.1 million, 18% below consensus of $556 million and down from $747.0 million a year prior. The miss came largely from lower-than-expected revenue, partially offset by a beat to operating costs and exploration expenses, the Canadian bank said.

WHAT WE WATCHED:

–DIVIDENDS: The company declared an interim dividend of 3.4 cents a share, down from 9.9 cents a share last year and missing market consensus by 69%, RBC said.

–COSTS: One of the bright spots in the results was a cost performance that was much better than expected, particularly in operating costs and exploration expenses, helping offset the weak revenue, RBC said. Lower-than-expected capital expenditure also resulted in better free cash flow, the Canadian bank said.

Write to Joe Hoppe at [email protected]

,

Credit: www.marketwatch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox