Fresnillo pleases market with gold output targeting 50pc rise

Caitlin Morrison
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SHARES in mining company Fresnillo were up by 5.39 per cent yesterday, after the company reported a “robust operational and financial performance” in 2014 at its annual meeting.

Chairman Alberto Bailleres said last year had been “challenging” for the precious metals sector, with declining prices affecting Fresnillo and its competitors. However, he said: “Our high quality assets, low cost operations, strong balance sheet and solid pipeline of organic growth projects again provided some protection.”

Bailleres added that the company had taken advantage of the tough market conditions and bought the remaining 44 per cent of the Penmont joint venture for $450m (£287m). He said the deal had allowed the firm to increase its 2018 gold production target from 500,000 ounces to 750,000 ounces.

Fresnillo yesterday recommended a final dividend of three cents per share, or $22.1m.