Fresnillo, the world's leading silver producer based in Mexico, experienced a challenging fiscal year with its pre-tax profits plummeting by over half despite an increase in revenue. The company reported adjusted revenues of $2.86 billion, up from $2.5 billion in the previous year. However, pre-tax profit suffered a 54.1% decline, settling at $114 million, attributed mainly to the unfavorable peso-dollar exchange rate amid Mexico's economic improvement. The peso appreciated by 11.7% against the dollar in 2023, resulting in a significant impairment of $113.3 million on costs denominated in Mexican pesos.
Earnings per share also saw a reduction, falling 14.1% to 31 cents from 37 cents in 2022. Fresnillo's board announced a final dividend of 4.2 cents per share, leading to a total yearly dividend of 5.6 cents per share—a 66% decrease from the previous year's 22 cents per share.
In terms of production, Fresnillo had a mixed year. Silver output saw a commendable increase of 4.7% to 56.3 million ounces, up from 53.7 million ounces in 2022. Conversely, gold production dipped by 4.0% to 610,000 ounces. The company did, however, record increases in attributable by-product lead and zinc production, which rose by 9.2% and 8.6% to 57,833 tonnes and 107,705 tonnes, respectively.
CEO Octavio Alvidrez remarked on the resilience and dedication of Fresnillo's team in face of numerous challenges. He highlighted the company's efforts in boosting productivity, increasing development rates, advancing future project pipelines, and implementing cost reduction measures to enhance efficiency across all mining operations.
