Fresnillo PLC (LSE:FRES) shares plunged 7% as the precious metals miner posted a fall in silver and gold production in the first quarter of 2025 but reaffirmed its full-year production guidance.
The Mexican miner, which is headquartered in London and listed in the FTSE 100, reported attributable silver production, including Silverstream, of 12.4 million ounces for the period, down 9.7% from the previous quarter and 8.4% year-on-year.
The decline was attributed to lower ore grades and volumes at key mines and the cessation of mining at San Julián.
Gold production rose 10.8% year-on-year to 156.1 thousand ounces, driven by improved grades and processing rates at Herradura.
Compared to the prior quarter, however, gold output fell 23.5% following the depletion of inventories processed in late 2024.
Lead and zinc by-product production fell 10.9% and 12.8%, respectively, from Q4 2024, also reflecting the end of activity at San Julián and lower grades at Fresnillo and Ciénega.
"We have started 2025 in line with our expectations, delivering a stable operating performance and maintaining the momentum we achieved in 2024," said CEO Octavio Alvídrez.
"Silver production is down as anticipated, as we account for the impact of cessation of mining activities at the San Julián DOB, although we expect to see a stronger second half performance.
"Gold production is up on the same period last year, driven by a continued strong performance at Herradura, as well as the benefit of processing gold inventories accumulated in the previous period. With those inventories now depleted, we expect gold production to normalise in line with our guidance."
Fresnillo maintained its full-year production guidance, forecasting silver output between 49 and 56 million ounces and gold between 525.0 and 580.0 thousand ounces.
The fall in the shares knocked off some of the recent gains, with the share price having risen over 60% since the start of the year due to rising gold and silver prices.
** Update: Adds share price **