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Highlights
Fresnillo PLC reported a significant rebound in gold production, increasing by over 20% to 156,000 ounces in the third quarter.
The company maintained its annual guidance for silver production, forecasting between 55 million to 62 million ounces.
A fatal incident at the Ciénega mine highlighted ongoing safety concerns, with the company reaffirming its commitment to achieving zero fatalities.
Fresnillo PLC (LSE:FRES) has announced a robust recovery in gold production during the third quarter, coinciding with gold prices reaching an all-time high of $2,753 per ounce. Chief Executive Octavio Alvídrez noted a remarkable 40% increase in gold output at the Herradura mine, which had previously faced challenges due to heavy rainfall. The strong performance at Herradura, along with increased production at the Ciénega mine, underscores the effectiveness of the operational team.
In total, the Mexico-based miner produced 156,000 ounces of gold in the three months ending September, marking a solid performance in line with its consistent operational metrics throughout the year. Despite this surge in gold production, silver output saw a slight decrease to 14.4 million ounces. However, successful performance from the Saucito and San Julián veins helped to mitigate the reduction in output from the Fresnillo mine.
Year-to-date gold production stands at 427,600 ounces, which reflects a 6.6% decline compared to the previous year. This decrease is attributed to lower ore grades and recovery rates at the Herradura mine, along with planned closures at the Noche Buena site. The company has reiterated its annual guidance for silver production, projecting 55 million to 62 million ounces, and for gold production, an estimate ranging from 580,000 to 630,000 ounces, which equates to approximately 101 to 112 million ounces in silver equivalent.
In addition to operational achievements, Fresnillo reported a tragic incident involving a fatality at the Ciénega mine during the quarter. The company expressed its deep sorrow regarding the event and reaffirmed its dedication to reaching a zero fatalities target, underscoring the importance of safety in its operations.
