Fresnillo maintains guidance despite mixed first quarter

16th Apr 2014 07:29

- Silver output up year-on-year, gold falls- Production guidance maintained- Development projects on trackMexico-focused precious metals producer Fresnillo said it is confident of hitting its 2014 targets despite a mixed first quarter as silver production gained and gold output fell.Attributable silver production was 10.4m ounces in the first three months of the year, up 3.5% on the year before. This was due to increased ore volume processed at the Saucito project and higher ore grade and ore throughput at Sabinas, where it operates its Silverstream contract.Fresnillo said it remains on track to achieve its silver output guidance of 43m ounces for the whole year, which includes 3.5m ounces from Silverstream.However, attributable gold production of 82,653 ounces was down 29.7% year-on-year after the stoppage of operations at Soledad-Dipolos and the temporary suspension of explosives permits affected the Herradura mine in January and February.Nevertheless, gold output was up 9.3% on the fourth quarter, after operations resumed in Herradura in the second week of March. Fresnillo said that production is expected to ramp-up to normal levels in the second quarter, helping it to meet its stated full-year production guidance of 450,000 ounces.""We have started 2014 with conviction in our ability to deliver on our targets for the year," said Chief Executive Octavio Alvídrez."We are confident that the consistent execution of our strategy will contribute to achieving our 2014 goals and continue to lay the groundwork for further growth."The company is continuing to focus on the construction of its development projects Saucito II and San Julián, which remain on track. These projects are "poised to deliver a significant step up in our production profile once commissioned and operating at full capacity", Alvídrez said.BC