Fresnillo Sees Revenue Growth Despite Lower Net Profit

Fresnillo Plc reports strong revenue growth of 29.3%, but net profit falls 39.8%. The company also issues dividends while projecting stable production for 2025.

Date: 04-03-2025

AI Rating: 6

Revenue Growth and Net Income: Fresnillo Plc reported a total revenue of $3.50 billion, a substantial increase of 29.3% from $2.71 billion in the previous year. This growth was primarily driven by higher precious metals prices and increased volumes sold.

However, despite this impressive revenue figure, the net income after tax decreased by 39.8%, amounting to $140.9 million compared to $233.9 million in the previous year. This drop was attributed to a higher tax expense this year, contrasting with a tax income last year.

Earnings Per Share (EPS): The earnings per share have decreased to $0.191 from $0.317. While this decline may appear negative, the adjusted EPS, excluding post-tax Silverstream effects, improved to $0.364 from $0.310, indicating a more favorable operational performance excluding one-off effects.

Profit Margins and EBITDA: The profit before income tax saw a remarkable surge of 552.5%, rising to $743.9 million from $114.0 million, thanks to higher gross profits and reduced administrative and exploration expenses. The company's EBITDA also more than doubled to $1.55 billion from $655.7 million, further highlighting operational efficiency.

Dividends: Fresnillo announced a total ordinary dividend for the year of 32.5 US cents per share, alongside a special dividend of 41.8 US cents per share. These dividends signal strong cash flow and shareholder return commitment, despite the dip in net profits.

Future Projections: For fiscal 2025, the company projects stable silver and gold production with attributable silver estimated between 49.0 to 56.0 million ounces and gold between 525 to 580 thousand ounces, signaling a steady supply outlook for precious metals.

Stocks: FRES.L