profits from Frenillo fell 54.3% in the first half of the year compared to 2021, to 1,259.1 million dollars, due to a drop in sales due to lower gold production and a reduction in the price of silver.
The company’s total revenue amounted to 1,259.1 million dollars between January and June 2022, a drop of 14.2% compared to the same period last year.
The Mexican miner listed on the London Stock Exchange reported that its gold production in the first half of the year plummeted 28% to 308,752 ounces.
He explained that the drop was due to the expected decrease in the volume of ore processed, as well as lower ore grades – metal concentration – at its Herradura and Saucito mines.
He added that the average price of silver in the first half of 2022 decreased 13.8% at an annual rate, going from 26.4 dollars per ounce in 2021 to 22.8 dollars this year.
The company also reported effects due to high inflation rates and the depreciation of the peso against the dollar, since its production costs increased 7.9% in January-June, to 659.3 million dollars.
“Global supply chain bottlenecks facing many industries, coupled with cost inflation, will have some impact in the second half. However, we are confident in our ability to overcome these short-term challenges, without limiting our ambitious long-term growth plans,” said Octavio Alvídrez, CEO of the company.
The company’s operating cash flow (EBITDA) fell 39.7% year-on-year, totaling 365.9 million dollars.
