Fresnillo (LSE:FRES), the world's largest primary silver producer, reported a slight increase in its total proven and probable silver reserves to 410 million ounces, and a 10.8% increase in its gold reserves to 4.1 million ounces. There was a far larger increase in group resources (measured, indicated and inferred). Silver resources jumped 33.3% to 1.115 billion ounces while gold resources rose 26.3% to 12 million ounces.
In a separate press release, the FTSE 250 silver and gold producer announced record attributable silver production, for the 12 month period ended 31 December 2008, of 34.8 million ounces. Gold production for 2008 was 264,000 ounces. Other financial highlights included an impressive 21.7% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) of US$337.4 million on revenues of US$839.6 million.
Fresnillo is proposing a final dividend payment of 7.7 US cents per share, and reminded investors that it has no debt and no hedging in place, so is benefiting from the strong silver and gold prices