Fresnillo PLC (LSE:FRES) shares rose 5% on Wednesday morning as prices of gold and silver found support after sharp falls the day before.
The Mexican precious metals miner, whose shares fell almost 14% yesterday, also reported third-quarter production figures, which were broadly in line with internal forecasts.
Full-year guidance was reiterated, with gold output expected to reach the upper end of its stated range.
Total attributable silver production for the quarter was 11.7 million ounces, including silverstream, representing a 6.6% decrease compared with the previous quarter and down 19.1% on the same period last year.
The reduction was attributed to lower ore grades and volumes at several sites, alongside the planned closure of mining operations at San Julián DOB.
Attributable gold production for the quarter totalled 151,300 ounces, down 4.1% from the prior quarter and 3.5% lower year-on-year. However, year-to-date gold output rose 8.8%, supported by strong ore grades at the Herradura mine.
Chief executive Octavio Alvídrez said: “We are on track to meet our full year guidance, with gold trending towards the upper end of the range.”
The gold price fell from over $4,370 an ounce on Monday night, pushing new all-time highs, to below $4,100 by the end of Tuesday and then below $4,020 on Wednesday morning. However, support appeared, with the price climbing up to $4,139 in recent hours.
Similarly, silver fell from $52.4/oz on Monday to just over $48 on Tuesday and below that in the early hours of Wednesday, before battling back up to $48.97.
Analysts at Peel Hunt said total silver production for the quarter was 3% below its estimate, while gold production was 9% higher, driven by lower ore grades and recoveries at Herradura and lower grades at San Julián Veins.