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FRES

Fresnillo maintains steady production amid industry challenges

investing.com 23/10/2024 - 12:49 PM

Fresnillo plc Q3 2024 Production Report

LONDON – Fresnillo (LON:FRES) plc, a leading silver and gold mining company, reported consistent production levels in Q3 2024, matching its annual performance. Despite facing industry-wide challenges, the company's output for silver and gold remained robust, with a notable recovery in gold production after weather-related disruptions earlier in the year.

Silver Production

Silver production for the quarter reached 14.4 million ounces, including Silverstream, a slight decrease of 1.5% compared to Q2 2024. This decline was attributed to lower ore grades and processing volume at San Julián DOB due to the site nearing the end of its life, as well as reduced grades at Ciénega. However, these declines were partially offset by:
– Higher ore grades at Saucito
– Increased processing at San Julián Veins

Year-to-date silver production increased by 1.2% compared to the same period in 2023, thanks to improved grades and processing volumes at Saucito and San Julián Veins. The overall increase was tempered by reduced production at San Julián DOB and Fresnillo, along with a lower contribution from Silverstream.

Gold Production

Gold production for the quarter was particularly strong, with a 20.6% increase over Q2 2024, reaching 156,800 ounces. This surge was driven by higher ore grades and processing volumes at the Herradura mine and improved grades in the Fresnillo District. Compared to Q3 2023, gold production rose by 18.2%, with Herradura's increased processing volume being a significant contributor. However, year-to-date gold output declined by 6.6% due to lower grades and recovery rates at Herradura and the closure of Noche Buena mine, partially offset by better performance at Fresnillo and San Julián Veins.

By-products Growth

By-products also experienced growth, with lead and zinc production increasing by 4.7% and 10.5% respectively over Q2 2024. Compared to Q3 2023, lead production saw a rise of 21.5%, while zinc output grew by 11.1%. Year-to-date figures for lead and zinc production were up by 18.1% and 11.2% respectively compared to the same period in 2023.

CEO's Statement & Safety Commitment

Fresnillo's CEO Octavio Alvídrez expressed confidence in the company's performance as it enters the final quarter of 2024, emphasizing their commitment to safety and operational efficiency. However, the company reported a regrettable fatality at the Ciénega mine during Q3, reaffirming their dedication to identifying preventive measures and maintaining strict adherence to safety policies.

2024 Outlook

Looking ahead, Fresnillo's 2024 outlook remains unchanged, with attributable silver production expected between 55.0 and 62.0 million ounces, including Silverstream, and gold production anticipated to range from 580 to 630 thousand ounces. In silver equivalent ounces, total production is projected to be between 101 and 112 million ounces.

The information for this report is based on a press release statement from Fresnillo plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.




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