Fresnillo (FRES)'s share price headed south after the group revealed a 22 per cent fall in full-year cash profits to $567m (£371m). Overall, it was a mixed year for the Mexican precious metals miner, with a step-up in silver production set against operational problems at its Herradura open-pit gold mine. Profitability suffered due to higher adjusted production costs, and there were drags from non-cash exceptional items, including currency-translation losses.
IC TIP:
Buy
at
753p
The main challenge for the group, however, was continued weakness in precious metals markets. Earnings were hit by a 10.2 per cent decline in the group's average realised gold price to $1,258 per ounce, while average silver prices fell 18.4 per cent to $18.60 an ounce.