Headline: Fresnillo Maintains Steady Production Amidst Industry Challenges
LONDON - Leading silver and gold mining company Fresnillo plc reported that it maintained stable production levels in the third quarter of 2024, consistent with its performance throughout the year. Despite industry-wide challenges, the company's silver and gold production remained strong, with a notable recovery in gold production following earlier weather-related disruptions.
Silver production during the quarter, including Silverstream, reached 14.4 million ounces, representing a slight decrease of 1.5% compared to the second quarter of 2024. This decline was attributed to lower ore grades and processing volumes as San Julián DOB approaches the end of its life and lower grades at Ciénega. However, these reductions were partially offset by higher ore grades at Saucito and increased processing volumes at San Julián Veins.
Year-to-date silver production increased by 1.2% compared to the same period in 2023. This growth was linked to improved grades and processing volumes at Saucito and San Julián Veins. The overall increase was limited by declining production at San Julián DOB and Fresnillo, as well as lower contributions from Silverstream.
Gold production in the quarter was particularly strong, rising 20.6% to 156,800 ounces compared to the second quarter of 2024. This increase was primarily due to higher ore grades and processing volumes at Herradura mine and improved grades in the Fresnillo District. Gold production rose 18.2% compared to the third quarter of 2023, with Herradura's increased processing volume making a significant contribution. However, year-to-date gold production decreased by 6.6% due to lower grades and recovery rates at Herradura and the closure of the Noche Buena mine. This decline was partially balanced by better performance at Fresnillo and San Julián Veins.
By-products also showed growth; lead and zinc production increased by 4.7% and 10.5% respectively compared to the second quarter of 2024. Compared to the third quarter of 2023, lead production increased by 21.5% and zinc production by 11.1%. Year-to-date figures for lead and zinc production recorded respective increases of 18.1% and 11.2% compared to the same period in 2023.
Fresnillo's CEO Octavio Alvídrez expressed confidence in the company's performance as they enter the final quarter of 2024, emphasizing their commitment to safety and operational efficiency. However, the company also reported a tragic fatal accident at the Ciénega mine in the third quarter and reaffirmed their determination to identify preventive measures and strictly adhere to safety policies.
Looking ahead, Fresnillo's outlook for 2024 remains unchanged. Attributable silver production, including Silverstream, is expected to be between 55.0 to 62.0 million ounces, while gold production is projected to range from 580 to 630 thousand ounces. Total production in silver equivalent ounces is anticipated to be between 101 to 112 million ounces.