2nd Dec 2019 08:45
(Alliance News) - Mexican gold and silver miner Fresnillo on Monday said its objectives going forward were to focus on stabilising production, improving operational performance and on project delivery at its mines.
Fresnillo shares in London were down 1.9% at 566.60 pence each on Monday morning, among the worst performers in the FTSE 100.
Ahead of its capital markets day in London on Monday, Fresnillo set its 2019 production guidance at the bottom of its previously guidance range.
The miner said it expects to produce 885,000 ounces of gold and 55 million ounces of silver. In October, Fresnillo had guided for 880,000 ounces to 910,000 ounces of gold for 2019, and for between 55 million ounces and 58 million ounces of silver. However, it had said at the time that it expected 2019 production to be towards the lower end of each range.
Fresnillo said the decrease in gold production guidance was driven by the planned Noche Buena mine closure and lower production from the Herradura site. Fresnillo expects 2019 capital expenditure to be around USD585 million.
"Our priorities for 2020 are to stabilise production, and to unlock the full potential of our current mines and projects. We will focus on operational improvement and efficiency, while de-risking and advancing our development pipeline, most notably the new Juanicipio mine," said Chief Executive Octavio Alvidrez.
"We are confident that with the proactive measures put in place at our mines, together with our consistent, focused strategy, we will deliver on these priorities and that we will continue to create sustained value for stakeholders in the long-term, balancing growth with returns and maintaining a solid financial position," Alvidrez added.
For future years, the FTSE 100-listed company sees 2020 gold production at 857,000 ounces and silver at 54 million ounces.
For 2020, gold production is predicted at 785,000 ounces and silver at 66 million ounces. Gold output is estimated at 665,00 ounces and silver at 71 million ounces for 2022.
The estimates for future is based upon current geological models and anticipated production improvements, Fresnillo said.
By Tapan Panchal; [email protected]
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