The world’s largest primary silver producer, Fresnillo (LSE:FRES) slipped 2% in early trading after the company reported production results for the first quarter of 2009.
Total attributable silver production climbed 9.4% to 9.2 million ounces compared to a year earlier, but gold attributable gold production fell 8.3% to 65,000 ounces. The fall in gold production was expected, as the company works its way through lower grade ore at Ciénega. By-product lead and zinc production decreased by 11.3% and 12.5%.
Jaime Lomelín, Chief Executive Officer, said that Fresnillo was very pleased with progress in the first quarter:
“We are very pleased with the strong start to 2009, with silver production up 9% on last year and gold production stabilising. Our development projects continue to advance on time and on budget. Costs have been reduced when expressed in US Dollars compared with Q4 2008 as a result of the exchange rate, lower input costs, the ongoing investments in cost control and efficiency improvements…management remains confident of achieving its 2009 production target levels which will be slightly higher than that achieved in 2008…”