UPDATE 1-Mexico's Penoles profit up on gold production
(Adds revenue, details from the report)
MEXICO CITY Aug 4 (Reuters) - Mexican miner Penoles said on Tuesday its net profit rose 42.5 percent in the second quarter as gold production increased and net financial costs fell.
The miner and metals processor, which runs the world's largest primary silver producer, Fresnillo, posted 552,620,000 pesos ($35.2 million) in net profit, compared to 387,913,000 in the year-ago period.
Revenue rose 2.3 percent to 15.8 billion pesos.
Net financial costs fell to 321.8 million pesos from 501.4 million pesos.
Gold production rose nearly 18 percent from the year-earlier period. Refined gold production increased more than 9 percent, Penoles said.
However, lead and zinc production declined from the year-earlier period mostly because work at its Naica mine in northern Mexico has been suspended since January, due to a flood.
Although most metal prices declined, Penoles said the depreciation of the peso "mitigated the adverse effects" of lower prices to the company's revenue in pesos.
($1=15.6950 pesos at the end of June) (Reporting by Joanna Zuckerman Bernstein; Editing by Richard Chang)
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