Fresnillo interim profits fall as silver prices decline

Precious metals miner Fresnillo posted a decline in interim profits on Tuesday but backed its guidance for the full year.

In the six months to 30 June, profit fell 54.3% to $141m, with revenues down 14.2% to $1.26bn and adjusted revenues 12.6% lower at $1.35bn. Earnings before interest, tax, depreciation and amortisation slumped 38.5% to $459.1m.

Fresnillo put this down mainly due to lower gold volumes sold and a drop in silver prices.

Chief executive Octavio Alvídrez said: "The global supply chain bottlenecks that so many industries are facing, together with cost inflation will have some impact in the second half. However, we are confident in our ability to weather these short-term challenges, without limiting our ambitious longer term growth plans.

"We benefit from a consistent strategy, exceptional assets, an exciting growth pipeline and a very strong balance sheet. We are well placed to deliver on our objectives this year. We look forward with determination and confidence."