Robust profit margins and strong financial position continue to deliver healthy returns
- Adjusted revenue of US$2,045.0 million, 29.2% increase vs. 2015 on increased volumes and higher metal prices
- Gross profit and EBITDA of US$882.1 million and US$1,032.0 million, up 103.7% and 88.5% respectively
- Profit from continuing operations before net finance costs and income tax of US$676.5 million, up 237.5%
- Devaluation of the Mexican peso vs. US dollar positively affected production costs
- Cost per tonne and cash cost decrease at all mines, due to devaluation of MXN and cost reduction initiatives
- Net cash from operating activities increased by 65.4% to US$898.0 million vs US$542.9 million in 2015
- Capital expenditures of US$434.1 million, 8.6% lower than 2015 and below guidance, mainly due to lower capex at San Julián reflecting the delay in phase II
- Exploration spend of US$121.2 million, 13.6% lower than 2015
- Free cash flow* of US$463.9 million (2015: US$68.2 million)
- Maintained financial flexibility, with year-end cash, cash equivalents and short term investments balance of US$912.0 million (2015: US$500.1 million), and debt of US$800 million
- Basic and diluted EPS from continuing operations of US$0.579; adjusted EPS of US$0.453, up 503.1% and 556.5% respectively
- Final dividend of US$21.5 cents per share, equivalent to approx US$158.4 million
*Net cash flow from operating activities less purchase of property, plant and equipment
|4Q16||4Q15||% change||3Q16||YTD 16||YTD 15||% change|
|Total Silver (koz)||13,316||12,166||9.5||11,775||50,303||46,977||7.1|
|Total attributable silver production incl Silverstream (Moz)||34.8||41.3||42.1||41.9||41.0||43.0||45.0||47.0||50.3|
|Attributable Gold Production (koz)||263.6||276.6||369.0||448.9||473.0||425.8||596.0||761.7||935.5|
|EBITDA (in millions of US$)||337.4||496.6||945.0||1,538.5||1,315.3||729.8||567.3||547.5||1,032.0|
|Cash flow from operating activities before changes in working capital (millions of US$)||405.8||548.8||983.6||1,612.1||1,356.7||750.2||568.5||537.3||1,023.3|
Key Commitments and Targets
- Maximise the potential of existing operations:
Fresnillo - Improve and optimise performance by developing infrastructure at the lower levels sufficient to increase the development rate to 4,800 metres per month by year end; commence work on plant optimisation; continue the deepening of the San Carlos shaft and expansion of the tailings dam.
- Deliver growth through development projects:
San Julián - Commission the second phase on time and on budget in 2Q 2017, including installing vibrating screens at the leaching plant to achieve an average of 4,000 tpd milling capacity.
Pyrites plant - Continue detailed engineering works and commence construction.
- Extend the growth pipeline:
Deploy US$160 million in exploration investment
- Advance and enhance the sustainability of our operations:
Strengthen our safety performance with zero tolerance for non-compliance, and increased investment and support for training and oversight.