Fresnillo plc (FRES.L) reported annual attributable gold production of 425,831 ounces, down 10.0 percent from last year. Annual attributable silver production, including Silverstream, was 42.7 Moz, up 4.3% year on year.
The Group said annual attributable silver production of 42.7 Moz including 3.9 Moz from the Silverstream, surpassed its guidance of 41 Moz, primarily as a result of the better than expected production at Saucito due to higher ore grades from the rich Jarillas vein and the additional ore processed from the development activities at the Jarillas and Mezquite veins. Silver production also benefited from the higher silver ore grade from San Ramón, Ciénega’s satellite mine, and increased ore throughput, the Group said.
Fresnillo said, annual attributable gold production of 425,831 ounces was in line with the Group’s last production guidance for 2013, but decreased 10.0% when compared to 2012 due to the lower production volumes at Soledad-Dipolos resulting from the stoppage of operations following the court order regarding the “El Ejido” litigation process. The temporary suspension of explosives permits at Herradura decreased the volumes of ore deposited on the leaching pads, further impacting annual attributable gold production. The decline of gold ore grade at Ciénega also contributed to the decrease in gold production volumes.
Looking forward, Fresnillo expects 2014 attributable silver production to be 43 Moz, including 3.5 Moz from the Silverstream. Attributable gold production is expected to return to 450,000 ounces following the anticipated resumption of operations at Herradura in March 2014, continued ramp up of production at Noche Buena and the start of operations at the Dynamic Leaching Plant. The Group expects the stoppage at Soledad-Dipolos to continue throughout 2014.
Fresnillo said cost control initiatives and operating efficiencies will continue across all operations in 2014.
Fresnillo said its annual production target remains 65 million ounces of silver and 500,000 attributable ounces of gold by 2018.
