The FTSE 250-listed miner, recently demoted from the FTSE 100 index, has been implementing a performance improvement plan to increase productivity and to better understand the geology of its mines.
The Mexican group now expects to produce between 51mln-56mln ounces of silver and 815,000-900,000 ounces of gold in 2020.
In the year to 31 December, gold production was 875,913 ounces, 5% lower than 2018.
The drop was due to construction delays and lower-than-expected ore grades at Herradura, one of Mexico’s largest open-pit gold mines and generates a third of Fresnillo’s revenues.
However, the asset is getting back on track, as gold production was 233,700 ounces in the fourth quarter or up 0.7% and 11% compared to last year and the third quarter respectively.
In contrast, silver production was 13.1mln ounces, a 10% decrease from last year but 4% higher than the third quarter.
Total silver production in 2019 was 54mln ounces, down 12% from 2018, due to expected lower ore grade at the Saucito mine, one of Fresnillo’s major assets.
Shares were flat at 611p on Wednesday morning.