* First-half attributable profit falls 10 pct
* Average realised silver prices falls 18 pct, gold 12 pct
* Special dividend of 5 cents a share
* Shares fall 0.9 percent
(Adds details, share price)
Aug 5 Fresnillo Plc reported a 10
percent decline in first-half attributable profit after selling
silver and gold from its Mexican mines at significantly lower
Shares of Fresnillo, which prides itself on production costs
among the lowest in the industry, fell in early trading. The
miner also announced a special dividend of 5 cents a share.
Many gold and silver miners were forced to slash costs last
year after prices of the precious metals fell to their lowest in
a decade. Gold fell 28 percent and silver plunged
36 percent in 2013.
Fresnillo's average realised silver price for the first half
of 2014 fell 18 percent to $20.26 per ounce. Its average
realised gold price fell 12 percent to $1,302.07 per ounce.
Attributable profit fell to $130.1 million in the six months
ended June 30 from $144.8 million a year earlier. Revenue fell
27 percent to $677.1 million.
Fresnillo said silver production rose 1.7 percent to 21.3
million ounces, including its Silverstream contract, while
attributable gold production fell 19 percent to 191,317 ounces.
Operations at Soledad-Dipolos, one of Fresnillo's six mines
in Mexico, have been halted by a legal dispute. Production at
another mine, Herradura, was halted between October and March by
a temporary ban on the use of explosives.
Fresnillo maintained its 2014 production guidance at 43
million silver ounces and 450,000 attributable gold ounces.
The company's shares were down 1.2 percent at 930 pence at
(Reporting by Karen Rebelo in Bangalore; Editing by Robin