LSE-listed Fresnillo’s financial performance for the full year ended December 31, 2018 was impacted by a challenging operational environment, the Mexico-focused company reported on Tuesday.

The miner recorded adjusted revenue of $2.24-billion, 0.5% increase compared with 2017, with lower prices offsetting the impact of record silver, lead and zinc volume sales.

Gross profit fell 15.6% to $780.7-million, which Fresnillo attributed to lower prices, higher adjusted production costs and increased depreciation. Adjusted production costs rose by 23.8%, on the back of a higher stripping ratio at Herradura, cost inflation and additional costs associated with higher volumes produced.

Its net profit for the year decreased by 37.6% to $350-million, owing to the lower profit from continuing operations and the $22.5-million Silverstream revaluation loss recognised in 2018, compared with the $70.3-million gain in 2017.

Capital expenditures was $668.7-million, up 10.6% vs 2017 but below guidance, mainly owing to the delay in the start of the construction of the Juanicipio project.

The company maintained financial flexibility, with year-end cash and other liquid funds of $560.8-million, compared with $896.1-million.

Basic and diluted earnings per share (EPS) from continuing operations was $0.475, while adjusted EPS was $0.461, down 37.6% and 29.4%, respectively.

The company’s 2018 final dividend was $16.7c apiece, equivalent to about $123.1-million, recommended by the board.

Meanwhile, in view of the demands of his recent appointment as chairperson of BBVA Bancomer, Jaime Serra Puche resigned from the board February 25.

The nominations committee has begun a search for a new independent non-executive director of the company.

Regarding safety, Fresnillo CEO Octavio Alvídrez confirmed five fatalities during the year and one more at the beginning of 2019. “We must do better. The safety of our workforce is at the top of our HSECR agenda for 2019, and we will renew our efforts to align employees and contractors alike with our safety culture.”