Fresnillo production slips in Q3 on lower ore grades

Wed, 27th Oct 2021

Mining company Fresnillo reported a fall in third-quarter silver and gold production, driven by lower ore grades and recovery rates. Quarterly attributable silver production fell 1.51% to 12.7 million ounces from the second quarter, mainly driven by lower ore grade at San Julian disseminated ore body. Quarterly attributable silver production (including Silverstream) decreased 4.7% from a year earlier. Quarterly attributable gold production slipped 13.8% to 172,500 ounces versus 2Q21, primarily due to 'lower volumes of ore processed and recovery rates at Herradura and Noche Buena as well as a lower volume of ore processed and ore grade at Saucito,' the company said. Looking ahead, the company said it was on track to meet its 2021 full year guidance of 53.5 to 59.5 moz of silver and 675 to 725 koz of gold. 'We continue to monitor the possible impact of the labour reform and general shortage of personnel, as well as potential headwinds, in particular inflationary pressures and the average revaluation of the Mexican peso vs US dollar, which may impact costs,' it added. Story provided by StockMarketWire.com

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