Fresnillo Q2 silver production gets boost from San Julian

Quarterly gold production increased 4.6% year-on-year to 234,000 ounces due to higher ore grades, throughput and recovery rate at Saucito and the higher grades at Noche Buena, Herradura and Fresnillo.

The company raised its outlook for full-year 2018 gold production, but cut the forecast for silver output.

Fresnillo forecast full year gold production of 900,000 – 930,000 ounces, up from 870,000 to 900,000 and total silver production of 64.5m - 67.5m ounces, including the Silverstream contract down from 67m – 70m ounces.

Chief executive Octavio Alvídrez said the company had made “good progress” with its development pipeline, with two main projects now complete.

“The Pyrites Plant has been commissioned and final testing at the Second Dynamic Leaching Plant is on track. Both projects will make a meaningful contribution to overall 2018 production,” he said.

“We have adjusted our full year production guidance to reflect a better than anticipated gold performance due mainly to the ongoing reduction of inventories at Herradura and slightly lower than expected silver production due mainly to issues associated with less availability of process water at San Julián. Overall however, our full year consolidated guidance in silver equivalent ounces remains unchanged".