25th Apr 2018 09:02
LONDON (Alliance News) - Mexican miner Fresnillo PLC reported higher year-on-year gold and silver production for the first quarter of 2018, with outlook for the year remaining unchanged.
FTSE 100-listed Fresnillo produced 231,500 ounces of gold in the first quarter of the year, up 4.1% year-on-year, which it attributed to increased production from the Herradura mine.
Silver production for the period was 15.4 million ounces. This was 14% up year-on-year, mainly due to a contribution from the San Julian mine, but it was 3.7% lower quarter-on-quarter due to a lower volume of ore processed and lower grades at the Saucito mine.
Fresnillo's 2018 gold output guidance is unchanged at between 870,000 and 900,000 ounces, and silver is unchanged at between 67.0 million and 70.0 million ounces.
Gold production in 2017 was 911,132 ounces, down 2.6% on 2016, while silver production was at a record 58.7 million ounces.
Fresnillo also said the construction of its Pyrites plant in the Fresnillo district is on track and the leaching plant at Saucito is due to be commissioned in the second quarter of 2018. Likewise, the commissioning of the second line of its dynamic leaching plant at Herradura is expected towards the end of the second quarter.
Chief Executive Octavio Alvidrez said: "Fresnillo has started the year well and delivered a solid operating performance during the period. In particular, first quarter silver production rose to 14.2 million ounces, driven by the positive contribution from the new San Julian JM (phase II) mine. I am also pleased to report a positive quarter at the Fresnillo mine driven by better access to the Candelaria and San Alberto areas as planned which improved throughput at the mine.
"Overall, we remain confident in the outlook and today reiterate our full year production guidance."
Shares were down 0.8% on Wednesday at a price of 1,267.70 pence each.
Related Shares:
Fresnillo