Fresnillo Plc shares fell in early London trading Tuesday after the precious metals miner posted better-than-expected full year earnings but lowered its gold production targets for 2017.

Fresnillo said operating profit rose 237.5% to $676.5 million in the year ending in December on a 29.2% increase in revenues to $2.05 billion. Production from its six gold and silver mines in Mexico recorded significant increases last year, with silver up 7.1% to 50.3 million ounces and gold up 22.8% to 935, 513 ounces, the company said. 

The company sees silver production rising again in 2017 to between 58 million and 61 million ounces, but said gold production will ease to between 870,000 and 900,000 ounces.

TheStreet Recommends

Fresnillo shares fell 1.9% to change hands at 1,458 pence each, trimming the three month gain to just under 18%. That gain, however, is well ahead of the 12.1% advance for the FTSE 350 Miners index.

"Our performance in 2016 again demonstrated the quality of our asset base and our low-cost and flexible operations," said CEO Octavio Alvidrez. "I am confident that with our focus on operational delivery, disciplined approach to investment and clear commitment to sustainable business practices, we can continue to optimise our performance and maintain our strong financial position to deliver considerable long-term value for our shareholders."

Fresnillo said it will pay a 21.5 cent per share dividend, worth around $158.4 million, up from 3.35 cents in 2016.