Photo: Jean Luis Arce / Reuters
Rising prices for precious metals did not benefit the same mine of the Mexican company Fresnillo, which is one of the few manufacturers of pure silver. According to Bloomberg, the company suffered serious losses.
In the first half of the year, the profit of Fresnillo fell by 69 percent. The stock has fallen to 10 percent. More than half of sales (52 per cent), the company received from gold, about one third from the silver, and the rest from by-products, for example, zinc and lead. CEO Octavio Alvidrez believes that in the second half things will get better due to price increases and cost reductions.
Also Alvidrez did not rule out that next year, silver production will be reduced. He estimated that the situation stabiliziruemost by 2021. Speaking of gold, Alvidrez reported that the increase in production at key mine — Herradura — you will not be able to compensate for the decrease on another Noche Buena.
The prices of precious metals soared amid rising tensions in global trade and related risks, as well as in anticipation of the fed’s decision on interest rate. In search of asset havens investors turned their attention to gold. Investing in precious metal was more profitable to purchase U.S. government securities. In late June, gold prices rose to the highest in the last six years (1453 per ounce), silver may has grown on 15%, now the ounce is 16.5 USD.
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