Fresnillo (LON:FRES) has released solid quarterly production results and although silver production of 12.2moz was down 1.7% YoY and flat QoQ, gold production was up strongly by 26% YoY and 7% QoQ to 230koz. FRES is therefore on track to meet annual guidance of 49-51moz silver and 775-790koz gold.
FRES’ gold production has been rising strongly in recent periods driven by higher gold grades at Fresnillo mine. Higher throughput at Saucito II offset expected grade weakness resulting in stronger gold production of 21.6koz, up 8% YoY and 3% QoQ. Stronger recoveries at Herradura and Noche Buena should also mean that the higher rate of production can be maintained. Meanwhile