Shares in Fresnillo PLC (LSE:FRES), the world's largest silver miner, tumbled 7.7% in the first half-hour of trading following a significant drop in interim profits for 2023.
The decline was primarily driven by cost inflation and the sharp appreciation of the Mexican peso.
Fresnillo's profit before tax plummeted 69.2% to US$47.9mln in the six months to 30 June, and basic diluted earnings per share fell 44.7% to 8.8 US cents.
Free cash flow sharply decreased from US$93.5mln in the previous year to $18.7mln.
Despite these challenges, CEO Octavio Alvídrez highlighted positives, including overcoming labour reform hurdles in Mexico and growth in new mining operations.
Additionally, the company reported a 6.1% increase in adjusted revenues to US$1.43bn, although the cost of sales grew by 18.7% to reach $1.06bn.
At 8.43 am, the shares were changing hands for 572.4p, down 45.8p.