Fresnillo says 2019 to be 'challenging year'

Gold and sliver miner Fresnillo said it expected 2019 to be "a more challenging year" than 2018, with a number of industry variables "potentially working against us".

In a statement ahead of the company's annual shareholder meeting, Fresnillo said despite the tough year ahead, "internal conditions in the long-term remain sound".

"We maintain our confidence in Mexico and will keep investing in the projects under exploration. As we reported in April, first quarter production was down as expected on the same period last year, though slightly weaker than anticipated," the company said.

"Full year guidance however remains unchanged as we expect to realise the benefits from the investments we have made into the operations."

Silver output slipped 14.8% to 13.1m ounces in the quarter to March 31, mainly due to lower grades of ore and lower ore throughput, Fresnillo said last month.

Octavio Alvídrez, Fresnillo Chief Executive Officer, said. The company, which mines gold and silver in Mexico, reported lower than expected full-year profit in February while warning of headwinds including lower precious metals prices for 2019.