Fresnillo PLC (LSE:FRES) reported a 59% jump in interim profits on higher gold and silver production and metal prices.
Underlying earnings (EBITDA) rose to US$747.0mln from US$469.9mln in the first half of 2020 for the FTSE-100 miner.
Adjusted revenues grew 37.1% to US$1.54bn, with 75.8% of this due to higher metal prices and 24.2% due to increased volumes.
It said it remained on track to meet its 2021 full-year guidance of 53.5mln to 59.5mln ounces of silver (including Silverstream) and 675,000 to 725,000 ounces of gold.
“We are assessing any potential impact that might result from the implementation of the new law restricting the ability to subcontract labour in Mexico. However, these new measures are not expected to materially impact second-half production,” it said.
Fresnillo, the world's largest primary silver producer, will pay an interim dividend of 9.90 US cents per share, up from 2.30 US cents the previous year. It warned that dividend payments relating to 2021 and future years will attract a 10% withholding tax obligation, following a corporate income tax reform introduced in Mexico in 2014, although foreign shareholders may be able to recover such tax.