Precious metals miner Fresnillo reported a fall in first-quarter production on Thursday, calling it "slightly weaker than anticipated" but sticking to output targets for the year as spending on tackling operational issues paid off.
Silver output slipped 14.8% to 13.1-million ounces in the three months ended March 31, mainly owing to lower grades of ore and lower ore throughput, Fresnillo said. Gold production dropped by 8.8%.
"We expect to realise the benefits from the investments we have made into infrastructure, equipment and an extensive infill drilling programme, which will all have a positive impact on production in the second half," Octavio Alvídrez, Fresnillo CEO, said.
The company, which mines gold and silver in Mexico, reported lower than expected full-year profit in February, while warning of headwinds, including lower precious metals prices for 2019.