Hambro favourite Fresnillo reports 62.8% profit growth

Precious metals mining company Fresnillo – a top holding of Evy Hambro’s BlackRock Gold and General fund – has posted strong profit growth for 2011.

Evy Hambro
Evy Hambro

The Mexican-based miner reported that earnings before interest, taxes, depreciation, and amortisation rose by 62.8% over the course of last year to hit £1.53 billion.

Revenues were up 55.6% to $2.19 billion, driven by a 21.6% increase in gold production. The group also announced a final dividend of $0.40 a share, taking the total dividend for 2011 to $1.03 per share.

Jaime Lomelín, chief executive of Fresnillo, says: “We delivered exceptional financial performance in 2011 on the back of strong precious metal prices and record gold production.”

However, Lomelín says he is “disappointed” with the company’s safety record last year. Fresnillo reports that 11 people died in its mining operations during 2011, with one fatality also seen in early 2012.

Fresnillo is the second-largest holding in Hambro’s £3.4 billion BlackRock Gold and General fund, where it makes up 6.3% of the portfolio*. It is also owned by Daniel Sacks and Bradley George’s £223m Investec Global Gold fund*.

* as of January 31