Business
FY19 Preliminary Results
FY19 Preliminary Results.
About this update from Fresnillo Plc
[{"type":"text","content":"\n \n \n RNS Number : 8118E\n Fresnillo PLC\n 03 March 2020\n \n \n \n \n Fresnillo plc \n \n \n \n Financial results for the year ended 31 December 2019\n \n \n \n Fresnillo plc today announced its financial results for the full year ended 31 December 2019. Octavio Alvídrez, CEO said: \n \n \n \"2019 was a more challenging year as expected, but we remain determined and optimistic for the future. \n \n \n Production did not meet our expectations in 2019. Total silver production fell by 11.6% to 54.6 moz as a result of the expected lower ore grade at Saucito as well as lower than expected ore grades at Fresnillo and San Julián Veins and Disseminated Ore Body (DOB). Gold production of 875.9 koz was down compared to 2018 due to the expected lower production from Noche Buena and a lower ore grade at San Julián Veins. \n \n \n This challenging operating environment was reflected in our financial performance, with gross profit and EBITDA decreasing by 40.9% and 26.3% respectively. Profit margins decreased accordingly but still remained at healthy levels. We maintained a solid financial position, with US$336.6 million in cash and other liquid funds[1] as of 31 December 2019, notwithstanding paying dividends of US$142.2 million, investing US$559.3 million in capex and spending US$157.9 million on exploration to underpin future growth.\n \n \n Our focus in 2020 is on maximising the potential of our existing operations. We are committed to working smarter and more efficiently in order to extract maximum value from our asset base. We have implemented a major performance improvement plan across our portfolio that includes intensive infill drilling to improve the certainty of the geological model, dilution control and raising development rates, together with actions to address contractor productivity and equipment availability. \n \n \n We are investing in infrastructure, plant and machinery including the new Tunnel Boring Machine which is now being ramped up at Fresnillo - one of the first of its kind. We have also begun to define a new programme to control costs and increase productivity. \n \n \n Though it will take time for these measures to take full effect, we do expect production to stabilise in 2020 and start increasing during 2021.\n \n \n We continue to invest in our longer term development projects in line with our organic g...