Fresnillo PLC (LON:FRES) left its full year guidance unchanged as it delivered an increase in third quarter silver and gold production.
Silver production in the three months to 30 September rose 24.1% on the previous year to 14.6mln ounces, boosted by the start of operations on the second phase of its San Julian silver-gold mine in Mexico.
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Gold output, the biggest contributor to revenue in the first year, was 233,000 ounces, up 6.1% on a year ago. A reduction in gold inventories and increase volume of ore deposited at its Herradura mine in Mexico supported the growth in gold production.
In the first nine months of the year, Frensillo produced 42.7mln ounces of silver and 679,000 ounces of gold, up 15% and 2% respectively on the prior year.
Fresnillo left its full year estimate for gold at between 870,000 and 900,000 ounces, and for silver at between 58 million and 61 million ounces.
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Chief executive Octavio Alvidrez said construction of its pyrites plant in the Fresnillo district in Mexico and the second dynamic leaching plant at Herradura are on schedule, on budget and in line to be commissioned next year as planned.
“Both will make a meaningful contribution to production growth in 2018."