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Fresnillo · Gold · Mining · Silver
Fresnillo Plc, a Mexican precious metals mining company, reported a decline in its second-quarter gold production to 130,025 ounces and silver output to 14,655 thousand ounces, while simultaneously achieving increased production in lead to 16,906 tons and zinc to 29,240 tons.
The decrease in gold production from 152,380 ounces in the prior year was primarily due to lower ore grade and recovery rates at Herradura, alongside the mine closure plan at Noche Buena. Silver production, down from 14,860 thousand ounces year-over-year, was impacted by lower ore grade, decreased processed ore volume, and reduced recovery rates at San Julian DOB, coupled with lower processed ore volume and grade at Fresnillo.
These silver declines were partially mitigated by higher ore grade and increased processed ore volume at San Julian Veins and Saucito, and higher ore grade at Cienega. The significant increases in lead and zinc production, up from 13,994 tons and 25,670 tons respectively, resulted from higher ore grades and increased processed ore volume at Saucito, and higher ore grades at Fresnillo and Juanicipio, though San Julian DOB's decreasing contribution partially offset these gains.
Despite the mixed Q2 performance, Fresnillo Plc reaffirmed its full-year production guidance, expecting gold output between 580 thousand and 630 thousand ounces and silver output between 55 million and 62 million ounces. The company will release its interim results on July 30.
