Fresnillo Q1 production slightly lower than expectations

First-quarter production at Fresnillo was slightly lower than forecasts but the company maintained full year guidance on expectations of higher second-half output.

Fresnillo said it still expected to hit full year production guidance of 58m-61m ounces of silver, including its Silverstream operation, and 910-930 koz gold.

Quarterly silver production fell 14.8% year on year to 13.1m ounces mainly due to lower ore grade and throughput at the Fresnillo operation.

Quarterly gold production was 8% lower year on year at 211,100 ounces due to lower volume of ore processed at Noche Buena and a slower overall speed of recovery on the leaching pads at Herradura.

In a separate statement, Fresnillo and MAG Silver confirmed that their silver/gold Juanicipio project had received approval from their respective boards and the Minera Juanicipio shareholders.

At full capacity, Juanicipio was expected to produce on average 11.7m ounces of silver and 43,500 ounces of gold per year.

Chief executive Octavio Alvídrez said the company had expected lower production for the term "though slightly weaker than anticipated".

"Full year guidance however remains unchanged as we expect to realise the benefits from the investments we have made into infrastructure, equipment and an extensive infill drilling programme, which will all have a positive impact on production in the second half," he said.