24th Oct 2018 08:19
LONDON (Alliance News) - Fresnillo PLC on Wednesday revised its annual production guidance after having mixed results in the third quarter of 2018.
The FTSE 100-listed gold miner said gold production in the three months to the end of September 30 declined by 3.5% to 225,000 ounces, suffering by comparison as a result of higher-than-normal speed in the recovery rate at the leaching pads in the third quarter of 2017. When compared with the second quarter of 2018, gold output fell by 3.7%.
Despite the declines, output in the quarter was better than the company had expected, it said. As a result, Fresnillo reviewed its annual gold output guidance and now expects to produce between 920,000 and 940,000 ounces, up from 900,000 to 930,000 ounces guided previously.
In the year-to-date, Fresnillo produced 690,000 ounces of gold, up 1.7% year-on-year.
"Gold production continues to beat expectations and we are once again revising our guidance upwards following another strong quarter," said Chief Executive Octavio Alvidrez.
Meanwhile, Fresnillo said silver production increased by 6.3% year-on-year to 15.5 million ounces due to the contribution of the new Pyrites plant in South Peru. Year-to-date silver production was up 8.5% at 46.3 million ounces.
However, the company said third-quarter silver production was not as high as anticipated, due to the lower-than-expected ore grade at Saucito mine in Mexico and slightly lower-than-expected ore throughput and ore grade at Fresnillo mine in Peru.
Thus, Fresnillo is now guiding silver production for the full year between 62.0 million and 64.5 million ounces, down from 64.5 million to 67.5 million ounces estimated earlier.
"Though silver production is up against all comparable periods, we are revising full-year silver guidance following continued challenges at the Fresnillo and Saucito mines," Alvidrez explained.
Fresnillo shares were trading 1.6% lower early on Wednesday at 961.81 pence each.
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