Fresnillo reiterates production guidance with upbeat outlook

18th May 2015 07:19

Precious metals producer Fresnillo said it remains on track to hit its output guidance in 2015 after a strong start to the year following a "challenging" 2014. At its annual general meeting on Monday, the Mexico-based miner is expected to reiterate its target of producing 45m-47m ounces of silver and 670,000-685,000 ounces of gold this year.The company said 2014 was a tough year for the precious metal industry, with further declines in prices affecting all companies in the sector.For Fresnillo, the average realised gold price fell 10% to $1,257.70 per ounce while silver slumped 18% to $18.60 per ounce.Nevertheless, the company said cost-control measures and efficient improvements allowed it to maintain its position as a low cash cost producer."I remain committed to our proven strategy in precious metals. Our priority, for 2015 and beyond, is firmly set on value creation," chairman Alberto Baillères said in a statement to shareholders."Thus, management must continue to focus on managing ore grades, optimising capacity and volume of ore processed, bringing on new projects, and extending the profitable growth pipeline, all while continuing to contain costs, enhance sustainability practices, and uphold our commitment to stakeholders."