25th Jul 2018 08:09
LONDON (Alliance News) - Fresnillo PLC on Wednesday tweaked its annual production guidance, raising gold guidance but lowering silver, following its second quarter production report.
Silver production in the second quarter of the year was up 5.7% on year, whilst production over the first six months of 2018 was up 9.7% to 30.8 million ounces. This was due to the start up of operations at San Julian JM in July 2017.
Gold production in the second quarter was up 4.6%, up 4.4% over the half to 465,000 ounces.
The increased gold production was due to an ongoing decrease in gold inventories and higher ore grade at Herradura, as well as a higher volume of ore processed and ore grade at Saucito.
Looking to 2018 as a whole, Fresnillo sees total gold production between 900,000 ounces to 930,000 ounces - previously guided between 870,000 ounces and 900,000 ounces - while silver is seen slightly lower, between 64.5 million ounces to 67.5 million ounces, from the previously guided 67 million ounces to 70 million ounces.
"We have adjusted our full-year production guidance to reflect a better than anticipated gold performance due mainly to the ongoing reduction of inventories at Herradura and slightly lower than expected silver production due mainly to issues associated with less availability of process water at San Julian," said Chief Executive Octavio Alvidrez.
Full-year consolidated production guidance, in equivalent silver ounces, remains broadly the same as original guidance, the company emphasised.
Shares in Fresnillo were 1.7% lower at 1,087.00 pence in early trade Wednesday.
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