Fresnillo's Saucito mine.
Precious metals miner Fresnillo on Wednesday reported second-quarter production results and adjusted its silver and gold guidance for the full year.
The world’s largest primary silver miner produced 15.34-million ounces of the precious metal in the second quarter, taking half-year output to 30.76-million ounces (including Silverstream).
The second-quarter performance is a 5.7% improvement on the prior year’s production, but fractionally lower than the first quarter’s output. Silver production, excluding Silverstream, increased by 1.6% quarter-on-quarter, as a result of the higher volume of ore processed at Saucito and higher grades at Cienega an San Julian JM (Phase II).
Gold production rose by 4.6% year-on-year to 233 841 oz, as a result of higher ore grade, volume of ore processed and recovery rate at Saucito and the higher grades at Noche Buena, Herrandura and Fresnillo.
Half-year production increased by 4.4% year-on-year to 231 458 oz.
Fresnillo trimmed its silver production guidance to between 64.5-million and 67.5-million ounces, compared with an earlier guidance of 67-million and 70-million ounces, to reflect lower production from San Julian as a result of a temporary resequencing of the production plan and higher input of stockpile ore to deal with issues associated with less availability of process water.
The company explained that the construction of the water reservoir, aimed at providing a consistent source of water to reduce this risk, has been delayed as a result of a longer-than-expected permitting process.
The gold production guidance, however was increased to between 900 000 oz and 930 000 oz, from a previous guidance of 870 000 oz to 900 000 oz. The consolidated production guidance, in equivalent silver ounces, remained broadly unchanged.
Shares in Fresnillo fell 8.45% on the LSE on Thursday.