Fresnillo maintains steady production amid industry challenges

LONDON – Fresnillo (LON:) plc, a leading silver and gold mining company, reported consistent production levels in the third quarter of 2024, matching its performance throughout the year. Despite facing industry-wide challenges, the company’s output for silver and gold remained robust, with a notable recovery in gold production following weather-related disruptions earlier in the year.

Silver production for the quarter reached 14.4 million ounces, including Silverstream, a slight decrease of 1.5% compared to the second quarter of 2024. This was attributed to lower ore grades and processing volume at San Julián DOB due to the site nearing the end of its life and reduced grades at Ciénega. However, these declines were partially compensated by higher ore grades at Saucito and increased processing at San Julián Veins.

Year-to-date silver production saw an increase of 1.2% compared to the same period in 2023, thanks to improved grades and processing volumes at Saucito and San Julián Veins. The overall increase was tempered by reduced production at San Julián DOB and Fresnillo, along with a lower contribution from Silverstream.

Gold production for the quarter was particularly strong, with a 20.6% increase over the second quarter of 2024, reaching 156,800 ounces. This surge was primarily driven by higher ore grades and processing volumes at the Herradura mine and improved grades in the Fresnillo District. Compared to the third quarter of 2023, gold production rose by 18.2%, with Herradura’s increased processing volume being a significant contributor. However, the year-to-date gold output declined by 6.6% due to lower grades and recovery rates at Herradura and the closure of Noche Buena mine, partially offset by better performance at Fresnillo and San Julián Veins.

By-products also experienced growth, with lead and zinc production increasing by 4.7% and 10.5% respectively over the second quarter of 2024. When compared to the third quarter of 2023, lead production saw a rise of 21.5%, while zinc output grew by 11.1%. Year-to-date figures for lead and zinc production were up by 18.1% and 11.2% respectively, compared to the same period in 2023.

Fresnillo’s CEO Octavio Alvídrez expressed confidence in the company’s performance as it enters the final quarter of 2024, emphasizing their commitment to safety and operational efficiency. However, the company also reported a regrettable fatality at the Ciénega mine during the third quarter, reaffirming their dedication to identifying preventive measures and maintaining strict adherence to safety policies.

Looking ahead, Fresnillo’s 2024 outlook remains unchanged, with attributable silver production expected to be between 55.0 and 62.0 million ounces, including Silverstream, and gold production anticipated to range from 580 to 630 thousand ounces. In silver equivalent ounces, total production is projected to be between 101 and 112 million ounces.

The information for this report is based on a press release statement from Fresnillo plc.

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