Fresnillo full year gold production beats guidance, silver at top end

Gold and silver miner Fresnillo said full year silver output was at the top end of its guidance while gold production surpassed its estimates and the miner now plans to increase its 2016 production.

Full year silver output was up 4.4% versus 2014 at 47m ounces, mostly thanks to higher ore throughput at the Saucito mine, which more than offset lower production at Fresnillo.

Meanwhile, gold production for the year was 762,000 ounces, exceeding revised guidance of 715,000 to 730,000 and surpassing the 2018 gold production target of 750,000 ounces.

Fresnillo attributed the strong performance to the dynamic leaching plant being fully operational following its start-up in March 2014 and the Herradura mine being fully operational post the temporary explosives permit suspension that affected production in 2014.

For the three months to the end of December, gold production was up 24.5% compared with the same quarter of 2014, mainly due to the start-up of the second Merrill Crowe plant at the Herradura mine, as well as higher overall average speed of recovery at the leaching pads.

Gold production for the period rose 18.8% from the previous quarter thanks to higher ore deposited at Herradura and an increased volume of gold recovered at Noche Buena.

In addition, the company said it was on track to reach its 2018 silver production target of 65m ounces.

Fresnillo said it now plans to up its gold and silver production.

Silver output is expected to be between 49m and 51m ounces, including 4m from the Silverstream contract, while gold production will rise to between 775,000 and 790,000 ounces.