Fresnillo Profit Boosted by Higher Prices, Output

Mining Weekly reports that LSE-listed Fresnillo, the biggest primary silver producer, doubled its earnings for 2010, after silver and gold prices rose and the company’s production volumes rose.

The report is quoted as saying:

Earnings were better than expected because the company was able to control costs at its operations, Brewin Dolphin mining analyst Nik Stanojevic wrote in a note on Tuesday.

Total cash costs rose by only 10% year-on-year, despite the increased volumes, a stronger Mexican peso and higher costs for consumables like electricity, diesel, explosives and so on, he commented.

“Fresnillo remains by far the lowest cost precious metals miner in our coverage,” Stanojevic wrote.

To read the full report, click here.