(Reuters) – Fresnillo’s <FRES.L> profit plunged by more than two-thirds in the first half of the year, hit by a drop in production and higher costs, the silver and gold miner said on Tuesday as it cut its capital spending budget for the year.
“Continued challenges at our Fresnillo, Saucito and Herradura mines, combined with higher costs, have impacted profitability for the period,” Chief Executive Officer Octavio Alvídrez said in a statement.
The precious metals miner had repeatedly flagged a troubled year ahead and earlier this month trimmed its output forecast, blaming lower quality ore and construction delays in Mexico.
Profit for the six months ended June 30 stood at $70.9 million (£58.2 million), compared with $229.3 million a year earlier.
The Mexico-based miner, which said it would put in place a cost control programme in the second half of the year, said it now expected annual capital expenditure of $655 million, down from its previous plan of $710 million.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Saumyadeb Chakrabarty)