Fresnillo says Juanicipio JV to start ahead of schedule

Precious metals miner Fresnillo said its $395m Juanicipio silver/gold joint venture in Mexico would now start ahead of schedule but reported a rise in equipment purchases and construction contract costs.

The company on Monday said the underground mine would start production ahead of schedule in mid-2020, realising commercial and operational de-risking opportunities for the joint venture.

Actual equipment purchases and construction contracts, pre-operative capex, had increased 11.4% to $440m also reflecting expenditure incurred on underground development, supporting infrastructure, and bringing forward some sustaining capital to facilitate the early underground start, Fresnillo said.

Juanicipio now expected to reach 85% name plate capacity in the fourth quarter of 2021 against previous guidance of 65% and 90-95% in 2022, in line with previous guidance.

Fresnillo owns a 56% interest in the joint venture, while the remaining 44% is held by MAG Silver.