Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Miner Fresnillo said on Tuesday its half-year profit fell by more than a third due to lower gold output and a dip in silver prices, sending the company’s shares down more than 7%.
The London-listed company, whose stock was the top loser on the FTSE 100 index, also warned of a hit from inflation and supply-chain bottlenecks in the coming months.
Gold production sank 28% to 308,800 ounces in the first half because of lower ore grades and a fall in the volume of ore processed at Fresnillo’s Herradura and Saucito mines in Mexico.
Core profit for the six months ended June 30 fell 38.5% to $459.1 million. The drop also reflected a nearly 14% decline in average realised silver price to $22.8 per ounce.
(By Muhammed Husain; Editing by Aditya Soni)
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