Fresnillo reaffirms silver, gold output targets – MarketWatch

LONDON–Mexican precious metals miner Fresnillo PLC (FRES.LN) said Wednesday that it remains on track to meet its full-year silver and gold output targets after reporting mixed silver and gold output in the third quarter.

Fresnillo, the world’s largest primary silver producer and Mexico’s second-largest gold producer, said silver production, including silver from its Silverstream supply contract, fell 1.3% on the year to 11.04 million troy ounces in the third quarter due to unusual above-average ore grade at the Sabinas mine, the source of its Silverstream silver supply contract, in the third quarter of last year, and lower output from its flagship Fresnillo mine last quarter.

Gold output, however, rose 16% on the year to 181,799 ounces in the third quarter on higher volume from the Herradura and Noche Buena mines, and an increase in the amount of ore processed at its Saucito mine.

The FTSE 100 miner said it is on target to meet its silver production guidance of 45 million to 47 million ounces for this year, including output from its Silverstream contract.

The company also said it is on track to meet its gold production forecast of between 715,000 and 730,000 ounces of gold this year.

Meanwhile, the company said its $515 million San Julian silver-gold project is forecast to be commissioned in the first half of next year. The project will produce an average of 10.3 million ounces of silver and 44,000 ounces of gold a year once it reaches full capacity in 2017.

-Write to Alex MacDonald at alex.macdonald@wsj.com

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