August 1, 2017 / 7:16 AM / 2 years ago

UPDATE 1-Fresnillo's profit nearly doubles in first half

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Aug 1 (Reuters) - Precious metals miner Fresnillo Plc said profit for its first half nearly doubled boosted by higher gold and silver prices and increased silver output from its San Julian and Fresnillo mines.

Fresnillo’s average realised prices for silver rose 5.2 percent to $17.4 per ounce in the first half, while the average realised gold price rose slightly to $1,250.3 per ounce.

Gold and silver prices have benefited from stronger industrial demand and their attraction as a haven from risk amid uncertainties surrounding the U.S. economy under Donald Trump and Britain’s decision to leave the EU.

The company's shares have gained about 26 percent so far this year, moving in tandem with the price movement of precious metals, Thomson Reuters data showed.

The company, which mines gold and silver from six mines in Mexico, said profit for the six months ended June 30 rose 87 percent to $310.1 million from a year ago.

Revenue for the period rose about 12 percent to $995.8 million for the half year, offsetting an increase in the cost of sales and boosting gross profit by about 16 percent to $460 million.

Silver production rose 11 percent to 28.04 million ounces while gold production fell slightly to 445,769 ounces during the period. (Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Gopakumar Warrier)

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