20th Jul 2016 06:42
LONDON (Alliance News) - Fresnillo PLC Wednesday said production of gold, silver, lead and zinc all rose in the first half of 2016, leading the miner to significantly raise its production guidance for the year.
Fresnillo reported a 23% rise in gold production in the first half of the year whilst silver production was up 6.0%, with lead production rising 18% and zinc by over 24%.
Following the strong performance, Fresnillo said full year gold production will now be considerably higher and in the range of 850,000 to 870,000 ounces compared to the previous target to produce 775,000 to 790,000 ounces - between a 9.6% to 12% lift.
Gold production last year totalled 762,000 ounces, beating the guidance range for that year of 715,000 to 730,000 ounces.
Silver production for the full year is still expected to be 49.0 to 51.0 million ounces, which would represent a 6.0% rise from last year if delivered.
Gold production in the first half increased to 447,569 ounces from 364,020 ounces the year before, with production falling in the second quarter from the first.
Total silver production rose to 25.2 million ounces in the first half from 23.8 million ounces a year earlier after production increased in the second quarter from the first. Silver production from Silverstream was up 11.5% in the first half whilst other operations produced 5.5% more year-on-year.
Lead production totalled 22,668 tonnes in the first half compared to 19,259 tonnes last year and zinc production came in at 25,380 tonnes compared to 20,438 tonnes a year earlier.
Fresnillo said it will book USD35.0 to USD40.0 million in total net losses from its gold hedging position and due to the result of changes to foreign exchange in the first half of the year. That charge will also be the result of the revaluation of Silverstream, it said.
By Joshua Warner; [email protected]; @JoshAlliance
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