GOLD miner Fresnillo blamed volatile metals pricing for a 44.3 per cent reduction in profit in the six months to 30 June, despite growing production of the precious metal by 37 per cent.
First half gold output rose to 364,020oz, up from 265,670oz in the same period of last year. However, profit dropped to $76.4m (£48.9m) from $137.1m.
Fresnillo boss Octavio Alvidrez said: “The pricing environment remains challenging, with ongoing precious metals price volatility.”
He added that, while “strategic objectives remain unchanged”, the firm will take action to avoid compromising profitable growth “as evidenced by our reduced capital expenditure estimate”.
The group has slashed capex for the year by around 19 per cent compared with previous expectations.
Shares in the mining group rose by 1.9 per cent yesterday.