Business
Full Year 2016 Preliminary Results
Full Year 2016 Preliminary Results.
About this update from Fresnillo Plc
[{"type":"text","content":"\n \nRNS Number : 0000Y Fresnillo PLC 28 February 2017 \n\nFresnillo plc \n\nFinancial results for the year ended 31 December 2016\n\n \nFresnillo plc today announced its financial results for the full year ended 31 December 2016. Octavio Alvídrez, CEO said: \n\"I am pleased to report a strong overall performance in 2016. We delivered record silver production of 50.3 million ounces, in line with our guidance, reflecting the initial contribution of San Julián phase I and higher grades at Fresnillo and Ciénega. Gold production of 935.5 thousand ounces exceeded our revised guidance, mainly as a result of the reduction in inventories at Herradura. Our record production, combined with higher metal prices and the devaluation of the Mexican peso during the year allowed us to deliver strong financial results in 2016 and as a result the Board has recommended a final dividend of 21.5 cents per share, equivalent to approximately US$158.4 million. \nAt the Fresnillo mine, despite reporting a slight improvement in silver production in 2016, we continued to experience some issues that impacted the delivery of our turnaround plan. However, we have implemented additional measures to increase mine preparation and expect a gradual improvement in production in 2017.\nSan Julián phase I was commissioned in the third quarter and contributed to our record annual production. It is now operating at levels above its designed capacity. Despite taking the decision to delay the start-up of San Julián phase II, we are pleased with the progress made during the year and are confident that this second phase will be commissioned in the second quarter of 2017.\nWe continued to optimise our operations in 2016; we not only made good progress with our development projects but we also increased our resource base. The pyrites plant and second line of the dynamic leaching plant at Herradura advanced largely according to plan, with commissioning of both due in 2018, and our exploration work resulted in an increase of our resource base at our operating mines and at projects where we have identified strong potential.\nOur solid operational performance, together with higher prices, lower costs and the favourable effect of the devaluation of the Mexican peso allowed us to almost double the cash generation from our mines. This more than offset our capital expendi...