(Reuters) - Fresnillo's (L:FRES) 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.