13th Apr 2016 06:21
LONDON (Alliance News) - Fresnillo PLC on Wednesday said it remains on track to deliver production growth in 2016 after reporting a solid start to the year and managing to keep its all-important development projects on track.
The gold miner said gold production in the first quarter of 2016 rose to 230,000 ounces whilst silver production totalled 12.2 million ounces.
Gold production was up 26% from the previous year and 6.5% higher than the fourth quarter of 2015, whilst silver production has remained broadly flat on a year-on-year and quarter-on-quarter basis.
Fresnillo said it remains on track to deliver its full-year production guidance of 775,000 to 790,000 ounces of gold, alongside 49.0 million to 51.0 million ounces of silver. If achieved, that would be improving on the 762,000 ounces of gold and 47.0 million ounces of silver produced in 2015.
The production growth in the first quarter mainly came from continuing improvements in the grade and production levels at its existing mines, with Fresnillo reporting its third consecutive quarterly improvement on Wednesday.
However, its development projects, specifically the San Julian mine, will be important for Fresnillo to achieve its production growth this year. Fresnillo said the mine remains on track and the stage-one leaching plant is set to be commissioned n the second quarter followed by the second stage in the fourth quarter of this year.
By Joshua Warner; [email protected]; @JoshAlliance
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