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Fresnillo on track to meet production targets

Keith Bowman | 14 October 2015 | A A A
Fresnillo on track to meet production targets

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Fresnillo, the world's largest primary silver producer, remains on track to meet its 2015 production targets of 45-47 million ounces of silver and 715-730 thousand ounces of gold.

The Chief Executive noted that "I am pleased to report solid third quarter production figures." Year to date silver production increased 6.6% on the same period of 2014, although third quarter production fell by 1.3% on 3Q14 as a result of the unusual above average ore grade at Sabinas (Silverstream) in 3Q14 and lower grade and volume of ore at Fresnillo.

Year to date gold production increased 29.2% over the same period of 2014, whilst third quarter gold production increased 16% on 3Q14, due to a higher overall average speed of recovery at Herradura as the ramp-up to steady state continues and an increase in irrigated areas on the mine's leaching pads, increased volume of ore processed.

The Chief Executive went on to note that "We have begun to see the results of the measures we have taken to solve the development delays at Fresnillo, with an improvement in both ore grade and production levels from the previous quarter at the mine. We have also made good progress in moving towards steady state at Herradura, and our San Julián project remains on track for stage 1 commissioning in the first half of next year." The group has six operating mines, all of them in Mexico. The share price rose by over 2% in early UK stock market trading.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research for more information.