Fresnillo says 2019 is challenging, cuts guidance
Mexico-based precious metals miner Fresnillo on Wednesday lowered its production guidance for 2019, citing lower-than-expected ore grades and ore throughput at the Fresnillo mine, a delay in the construction of a leaching pad at Herradura and the lower ore throughput at the dynamic leaching plant.
The miner, which trades on the London exchange, reduced its silver guidance for 2019 to between 55-million and 58-million ounces, from a previous guidance range of 58-million to 61-million ounces.
The gold guidance decreased to 880 000 oz to 910 000 oz, from the previously guided 910 000 oz to 930 000 oz.
In the second quarter, Fresnillo produced 14.4-million ounces, which was 6% less than the same quarter last year, but up 9.7% on the first quarter of 2019. First half silver production is 10.4% down on that of the first six months of last year.
Gold production of 221 300 oz was 5.4% down on the second quarter of 2018 and 4.8% up on the first quarter of 2019. In the six months ended June, gold production was down 7.1%.
“As we have previously guided, we expected 2019 to be challenging and we remain cautious,” said CEO Octavio Alvidrez in a media statement.
He noted, however, that production had continued to recover to targeted levels since the first quarter and that the company was starting to see the positive impact of operational measures and investments it had made into infrastructure, equipment and infill drilling.
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