Fresnillo, a leading Mexican precious-metals miner, has confirmed its full-year production guidance for silver and gold, despite a decrease in output for both metals in the third quarter.
Silver Production
In the quarter, Fresnillo produced 14.1 million ounces of silver, compared with 14.9 million ounces in the previous quarter. The decline was primarily attributed to lower ore grade and volume of ore processed at the San Julian and Saucito mines. Additionally, the volume of ore processed at the Juanicipio mine, the world’s largest silver producer, also contributed to the decrease.
Gold Production
Gold production experienced a 13% drop, with 132,627 ounces produced in the third quarter, down from the preceding quarter. This decline was mainly due to lower output at the Herradura and Noche Buena mines, as well as a decrease in ore grade and recovery rate at Saucito.
Lead and Zinc Production
On a positive note, lead output increased by 4.2% to 14,575 tons, while zinc production saw a significant jump of 13% to 29,073 tons.
Outlook and Challenges
CEO Octavio Alvidrez acknowledged the ongoing impact of inflation and the revaluation of the Mexican peso, which are expected to pose challenges going into 2024. Despite these headwinds, Fresnillo remains committed to achieving its full-year targets. The company aims to produce between 57.0 million and 64.0 million ounces of silver and expects gold production to range from 590,000 to 640,000 ounces.
