International gold miner Fresnillo said that it has better-than-expected full-year profits boosted by a price increase and successful cost-cutting measures.
Gold prices are near their highest in four years. Prices at the London bullion market were up 3.2 percent at $1,233 per ounce today, but are still down by around two-thirds from the record high of $1,900 an ounce seen in February 2011.
The precious metal miner posted pre-tax profit of £1.4 billion ($1.95 billion) for the 12 months to the end of March, up 26 percent on the previous year.
The company said that it was also making progress on disposing of non-core assets, cutting costs and achieving operational excellence in its estates in Mexico and Peru.
The strongest production result was from its new Ocampo mine in northern Mexico, which was ahead of the previous year’s production.
The firm also continued to reduce costs throughout the year, notably at the level of its office staff as it continues to streamline its operations.
Costs per ounce were down 1.3 percent at £718, improving from £750 per ounce in the previous year.
When these and other measures were factored in, Fresnillo said it made “a very strong performance” in the previous financial year.
Fresnillo was one of several companies to succeed in getting a temporary increase in the Government’s 20 percent tax on dividends.
Around 93 percent of Canadian gold miner Eldorado Gold’s shareholders approved a higher dividend for the fiscal year ending April 31, 2019, after it received a tax break from the Government.
The Government passed tax breaks for certain non-financial companies in the 2018 Budget, a matter which is being disputed at the European Union level.