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Fresnillo adds $300m interim dividend

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Fresnillo adds $300m interim dividend

Tue, 06 December 2011

FTSE100 miner Fresnillo said it will pay a second interim dividend of $300m after the firm's cash pile was boosted by metal prices in 2011.

The pay out, equivalent to 41.85c per share, will be made on 30 December 2011 to shareholders on the register on 16 December.

The firm said it has decided on the move after "a comprehensive review of the company's current and future financial requirements".

Fresnillo said the strength of underlying precious metal prices in 2011 meant it would have sufficient cash on its balance sheet at the year end after the payment of the second interim dividend and allowing for a significant capital expenditure programme going forward.

"Even allowing for a significant capital expenditure programme over the next few years to fund the exploration and development operations that will deliver our future growth ambitions, the strong financial performance of the company during 2011 means that we are in a position to pay a second interim dividend," said chief executive Jaime Lomelin.

In August the company reported six month revenues rose to $1,056bn (£644.5m) from $605.7m the previous year, while earnings before interest, depreciation and amortisation (EBITDA) rose to $757m from $394.3m.

At the time Fresnillo pointed to silver prices that nearly doubled between the two periods to $35.74 an ounce. Average gold prices rose by a quarter to $1,462 an ounce.

However, investment bank Citi highlighted a small miss in the numbers when they were released.

The company reported $422m of attributable net profit in the first half of 2011 (excluding Silverstream), under the US broker's expectations of $467m, while earnings per share of 58.8c was short of estimates of 65.2c.

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