Fresnillo reports silver production decline in Q3, maintains its annual guidance
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(Kitco News) - Fresnillo announced Wednesdayits Q3 2021 attributable silver production of 12.7 moz (includingSilverstream), which was down 15.1% over Q2 2021 mainly driven by theanticipated lower ore grade at San Juli??n Disseminated Ore Body (DOB) followingthe exceptional high grades in the previous quarter.
Quarterly attributable silverproduction (including Silverstream) decreased 4.7% over Q3 2020 due to a lowervolume of ore processed and a lower ore grade at Saucito, mitigated by a higherore grade at San Juli??n DOB.
The company's quarterlyattributable gold production of 172.5 koz was down 13.8% over Q2 2021,primarily due to lower volumes of ore processed and recovery rates at Herraduraand Noche Buena as well as a lower volume of ore processed and ore grade atSaucito.
However, quarterly attributablegold production was in line with Q3 2020 as a result of a lower ore grade atCi?(C)nega and San Juli??n Veins, offset by the good performance at Herradura andNoche Buena.
Quarterly attributableby-product lead and zinc production decreased 20.6% and 17.2% over Q2 2021respectively, driven primarily by lower ore grades and decreased volumes of oreprocessed at Saucito.
The company said it remainson track to meet its 2021 full year guidance of 53.5 to 59.5 moz of silver(including Silverstream) and 675 to 725 koz of gold.
“We continue to monitor thepossible impact of the labour reform and general shortage of personnel, as wellas potential headwinds, in particular inflationary pressures and the averagerevaluation of the Mexican peso vs US dollar, which may impact costs," thecompany noted in a statement.
Fresnillo plc is the world'slargest primary silver producer and Mexico's largest gold producer, listed onthe London and Mexican Stock Exchanges under the symbol FRES.
By Vladimir BasovFor Kitco News
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