Fresnillo on Track to Meet 2014 Silver, Gold Guidance

Fresnillo plc (LSE:FRES), the world’s largest primary silver producer, released its production report for the second quarter of 2014. During that time, it achieved attributable silver production of 10.9 million ounces. That includes material brought in by a Silverstream contract.

Other highlights include:

  • Quarterly and year to date attributable silver production (including the Silverstream) remained at similar levels over the same periods of 2013 mainly as a result of higher ore processed at Saucito and increased production from the Silverstream, which compensated for the lower ore grade at the Fresnillo mine.
  • Attributable gold production up 32% over 1Q14 as Herradura gradually increased production toward normal production levels and as the Dynamic Leaching Plant continued to ramp-up to full capacity.
  • Quarterly and year to date attributable gold production down 8% and 19% when compared to the same periods of 2013 due to temporary disruptions at Herradura which ended in March 2014 and suspension at Soledad-Dipolos.
  • Construction of Saucito II remains on track to be completed in 4Q14. Construction of the leaching plant at San Julián commenced and is on track to start production in 2H15.
  • Interesting exploration results were obtained at San Ramón (Ciénega), Cardones (Guanajuato) and Pilarica (Peru) and we expect to report an increase in resources at year end.
  • On track to achieve 2014 guidance of 43 million silver ounces, including the Silverstream, and 450,000 attributable gold ounces.

Octavio Alvídrez, CEO of Fresnillo, commented:

I am very pleased to report a strong second quarter of silver and gold production. We are successfully bringing production back to normal levels at Herradura after having received the new explosives permit, we successfully ramped-up the Dynamic Leaching Plant, and Saucito continues to perform extremely well as does Noche Buena. We also received an increased contribution from the Silverstream over the quarter.

Our medium and long term future also remains secure. Our new projects under construction, Saucito II and San Julián, are on track to begin production in 2014 and 2015 respectively and our exploration team continues to deliver interesting results which we expect to announce later at the full year.

Click here to read the full Fresnillo plc (LSE:FRES) press release.