London-listed Mexican miner Fresnillo Ltd (FRES.L: Quote), the world's biggest primary silver producer, posted a worse-than-expected 10.8 percent fall in 2008 attributable profit and said 2009 output would be mostly flat and demand would be lacklustre.
Whilst we remain positive on the long-term evolution of precious metals prices, we expect the global slowdown to reduce overall demand for precious metals in 2009, a statement said.
Fresnillo, a unit of Mexico's Penoles (PENOLES.MX: Quote), said on Monday attributable net profit fell to $127.95 million from $143.5 million in 2007.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 21.7 percent to 334.36 million.
Attributable profit of $241 million had been expected by four analysts surveyed by Reuters Estimates while EBITDA had been forecast at $404.5 million.
The group posted record attributable silver production of 34.8 million ounces, up 1 percent, and a 5.7 percent fall in gold output to 264,000 ounces.
Fresnillo, which listed on the London Stock Exchange last May, proposed a final dividend of 7.7 cents a share.
Fresnillo shares, which have jumped 85 percent so far this year, closed on Friday at 413 pence. (Reporting by Eric Onstad; Editing by Mike Nesbit)
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