Fresnillo output falls in Q3, but full-year guidance unchanged

Precious metals miner Fresnillo said it remains on track to hit full-year production targets despite both silver and gold output falling in the third quarter.

Silver production totalled 14.1m ounces in the three months to 30 September, down 5.1% on the second quarter but up 3.8% on last year, as the ramp-up of its new Juanicipio mine offset lower production at Noche Buena as it nears its end of life.

Total silver output over the first three quarters was down 2.2% year-on-year at 42.1m ounces. However, the company still expects to hit guidance of 57m-64m ounces for the 2023 financial year.

Gold output was 132,600 ounces, down 13% on the second quarter and 16.7% lower than last year, after an electrical fault and lower ore grades at the Herradura project, along with a fall-off of volumes from Noche Buena.

Year-to-date gold production was 458,042 ounces, down 2.1% on last year, but full-year output guidance was held at 590,000 to 640,000 ounces.

"We continue to address the ongoing impact of inflation and the revaluation of the Mexican peso, which we expect to remain headwinds going into 2024, through measures including the greater use of technology, autonomous drilling and reducing haulage costs," said chief executive Octavio Alvídrez.