Fresnillo profit surges on metal prices, but tax hits bottom line

(Alliance News) - Fresnillo PLC on Tuesday reported a sharp rise in revenue and operating profit ...

Alliance News 4 March, 2025 | 9:22AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Fresnillo PLC on Tuesday reported a sharp rise in revenue and operating profit for 2024, benefiting from higher silver and gold prices, but a significantly increased tax burden weighed on net earnings.

The Mexico-focused precious metals producer said revenue increased 29% to USD3.50 billion last year from USD2.71 billion in 2023, reflecting higher silver and gold prices.

Pretax profit multiplied to USD743.9 million from USD114.0 million, while earnings before interest, tax, depreciation, and amortisation more than doubled to USD1.55 billion from USD655.7 million.

Despite higher operating profitability, net profit fell 21% to USD226.7 million from USD288.3 million, primarily due to a significantly higher tax expense. Total income tax and mining rights charges rose to USD517.2 million, compared to a tax benefit of USD174.3 million in 2023.

The increase was driven by a higher corporate income tax charge of USD390.2 million, up from a tax gain of USD205.0 million the prior year, alongside a rise in special mining rights payments to USD127.0 million from USD30.8 million.

Diluted earnings per share dropped to USD0.191 from USD0.317, while adjusted EPS were up 17% to USD0.364 from USD0.310.

Fresnillo declared a final dividend of 26.1 US cents per share, bringing the total ordinary payout for the year to 32.5 cents per share. This marks a significant recovery from 2023, when the company reduced total dividends to just 5.6 cents in line with its policy of distributing 33% to 50% of post-tax profit to shareholders.

Fresnillo also announced a one-off special dividend of 41.8 cents per share, taking total shareholder returns for 2024 to USD547.5 million.

Chief Executive Officer Octavio Alvidrez said: "[Fresnillo's] solid financial performance for 2024 was underpinned by higher precious metal prices, operational discipline, and a continued focus on cost efficiencies.

"Operationally, we delivered silver production in line with guidance and gold production slightly ahead, with lead and zinc production also up strongly over the year. Meanwhile, we have made significant strides in improving efficiencies, optimising mine plans, and advancing key projects, including the full commissioning of the San Carlos shaft at our Fresnillo mine."

For 2025, Fresnillo expects silver production between 49.0 million and 56.0 million ounces, down from 56.3 million ounces in 2024. Gold output is forecast between 525,000 and 580,000 ounces, down from 631,573 ounces last year. The company expects haulage cost reductions from the full commissioning of the San Carlos shaft at its Fresnillo mine.

Shares in Fresnillo were up 2.7% at 774.50 pence in London on Tuesday morning.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Fresnillo PLC 779.00 GBX 3.32 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2025 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures