Fresnillo profits drop as gold prices fall

By Olivia Goldhill
The Telegraph (UK)

goldbars160Mexican precious metal miner Fresnillo reported a 64.4pc drop in profit last year compared to 2012, hit by tumbling gold and silver prices and a fall in production.

Largely as a result of operational issues, Fresnillo gold production fell 10pc to 425,831 ounces and revenue dropped 23pc to $1,615.2m.

The legal issues left Fresnillo without an explosive permit at its Herradura mine in Mexico for the last two months of 2013 after a dispute with the local community stopped production.

The company has since had its permit renewed, but reported pre-tax profit of $418.7m in 2013, below analyst expectations of $520m.

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