Fresnillo shares rise on San Julián project update

Shares in mining titan Fresnillo are up almost 7% against a falling market after confirming construction of the San Julián project, phase 1, completed on time and on budget.

This included testing of the facilities and initial processing of ore. It said it was addressing a minor technical failure of the type often occurring in the start-up of a new project.

Fresnillo also said it expected the milling facility to be up and running regularly towards the first week of August, thereafter being gradually taken up to full capacity.

The miner confirmed its guidance of 775-790 koz of gold and 49-51 moz of silver for 2016, citing higher than expected volumes produced at Saucito compensating for the shortfall production at San Julián.

The $515 million San Julián silver-gold project has an expected average production of 10.3 million ounces of silver and 44,000 ounces of gold a year once phase 2 was commissioned by year-end and it reaches full capacity.

At 12:02 BST, Fresnillo's shares were up 6.59% to 116p.