Fresnillo, the Mexican precious-metals miner, has released its results for the first half of 2023. Let’s take a closer look at the key details:
Revenue
The company reported a total revenue of $1.34 billion for the six-month period ending on June 30. This figure slightly missed expectations, as analysts had estimated revenue to reach $1.35 billion. It is important to note that this result still represents growth compared to the same period last year when revenue amounted to $1.26 billion.
Earnings
Fresnillo’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of the year reached $351.0 million. Although this figure fell short of the expected $403.0 million, it is worth mentioning that the company had achieved $459.1 million in EBITDA during the same period in the previous year.
Pretax Profit
The company’s pretax profit for the first half of 2023 stood at $47.9 million, which was significantly lower than anticipated. Analysts had estimated a pretax profit of $122.8 million, and it is important to note that Fresnillo had recorded a pretax profit of $155.2 million during the same period last year.
Key Highlights
Costs
Fresnillo reported a 19% increase in its cost of sales, reaching $1.06 billion for the period. This rise was primarily attributed to increased production costs and the consumption of inventories at its mines. Additionally, exploration expenses rose by 25% to $96.9 million. The company reiterated its guidance of $175 million for exploration expenses for the year. Analysts had estimated total costs and expenses for the first half of the year to amount to $1.20 billion, including $1.04 billion in cost of sales and $91.9 million in exploration expenses.
Production
Despite the challenges faced, the miner stands firm on its production guidance. Fresnillo expects to produce between 57.0 million and 64.0 million ounces of silver, as well as between 590,000 and 640,000 ounces of gold in 2023.