28th Jan 2014 07:52
LONDON (Alliance News) - Fresnillo PLC Tuesday said its full-year 2013 gold production ended slightly below its revised guidance due to an court-order explosives suspension in Mexico.
The precious metals miner, operating in Mexico, said it made attributable gold production of 425,831 ounces in the full year 2013, a 10% fall when compared to its 473,034 ounces of gold produced in 2012 and slightly lower than its revised gold production guidance of 425,900 ounces.
However, the company achieved attributable silver production of 42.7 million ounces, a 4.3% increase on its 41.0 million ounces in 2012 and above its guidance of 41 million ounces.
In December, the company lowered its full year 2013 gold production estimates, mainly due to problems it has been having getting permission to use explosives at mines in Mexico.
Fresnillo has struggled with production in recent months as locals living on the Ejido El Bajio agrarian land, the site of some Fresnillo's operations, achieved a temporary suspension of explosives use on the company's Herradura, Soledad and Dipolos mines.
"The company is confident that there are no outstanding reasons why the temporary suspension of the explosives permit relating to Herradura and Soledad should not be lifted," the company said in a statement in December.
The company said Tuesday that results of a district court hearing on the underlying merits of the communities request to impede a lifting of the explosives suspension, which took place on January 24, is expected in the coming days.
Fresnillo also noted that construction of a new dynamic leaching plant at its Herradura mine was completed on schedule and will start-up as soon as the mine is available following its ongoing dispute.
Despite this, the company expects its attributable silver production to be 43 million ounces for 2014 and its attributable gold production is expected to return to 450,000 ounces, following the expected resumption of Herradura operations in March, continued ramp up of production at Noche Buena and the start up of the dynamic leaching plant.
The company said its annual production target remains 65 million ounces of silver and 500,000 attributable ounces of gold by 2018.
However, Fresnillo said it expects the stoppage of operations at Soledad and Dipolos to continue throughout 2014.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Fresnillo