logo-loader
viewFresnillo Plc

Fresnillo downgrades silver forecasts despite 6% rise in Q3 output

“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.”

silver
Fresnillo produced 46.3mln ounces of silver in the first nine months of 2018

Fresnillo Plc (LON:FRES) has told investors that quarterly silver production totalled 15.5mln ounces, up 6.3% on the third quarter last year.

Output was boosted by contribution from Pyrites Plant, higher grades at the Fresnillo operation as well as Herradura and Ciénega, plus higher volumes of ore milled at the San Julián site.

The company noted that production remained in line with the previous quarter and year-to-date production was up 8.5% at 46.3mln ounces.

READ: Fresnillo may become London’s go-to precious metals miner

Forecasts for the full year have, however, been downgraded somewhat to 62-64.5mln ounces, instead of 64.5-67.5mln. The Mexican miner noted challenges at the Saucito and Fresnillo mines, which are still being addressed.

“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,” said Fresnillo chief executive Octavio Alvídrez.

“These are world class, tier one silver assets, and we remain both determined, and confident, given the actions we are taking, that we will deliver a better performance in the last quarter and in 2019.”

Gold production was meanwhile in decline through the third quarter at 225,000 ounces, down 3.5%, as a result of quicker than normal leaching, lower grades and lower ore volumes delivered to leach pads.

Year-to-date gold production amounted to 690,000 ounces which represent a 1.7% improvement compared to the same period in 2017.

Fresnillo has revised its full-year gold production forecasts slightly – seeing 920,000 to 940,000 ounces, from 900,000 to 930,000).

Quick facts: Fresnillo Plc

Price: 637.6 GBX

LSE:FRES
Market: LSE
Market Cap: £46.99 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Iconic Labs shake up the media tech space with two new deals

Iconic Labs PLC (LON:ICON) is a media and technology business focused on online marketing, content and technology products. Chief Executive John Quinlan tells Proactive London how two new deals - a contract and a new JV - will have a significant impact on his business.  News here too on...

3 hours, 54 minutes ago

2 min read