Fresnillo shares rise after its profits more than double

Jessica Morris
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Fresnillo's gold and silver production rose in the first half (Source: Getty)

Fresnillo shares sparkled today, after the precious metals miner struck gold in the first half of 2016.

It comes on the back of investors boosting gold and silver prices by rushing into the so-called safe haven assets following Britain's decision to leave the European Union in June.

Read more: The Royal Mint hails best results in over a thousand years

Increased sales and soaring goal production helped the FTSE 100-listed firm's total revenues rise 17.9 per cent year-on-year to $886.9m in the six months to 30 June.

Its pre-tax profit jumped 87 per cent to $255.1m during this period, while net profit rocketed 116.9 per cent to $165.6m.

Gold and silver production rose 23 per cent and 6.1 per cent respectively. The company hiked its full-year production guidance for gold and said silver output remains on track to meet targets.

It also plans to spend $600m in capital expenditure this year, rising to $700m next year.

Fresnillo shares rose as much as 3.74 per cent to 1995.00p this morning, meaning its value has nearly tripled since the beginning of this year.

Read more: London-listed miners lose out as gold demand dampens

Octavio Alvídrez, the group's chief executive, said: "Precious metals prices have performed strongly since the start of the year, and our mines have seen increased production, resulting in robust financial results."

He continued: "However, we are maintaining our cautious approach, with strict operational and financial discipline, and investment decisions will continue to be evaluated on a project by project basis against key criteria."

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