MINING REFINING

Fresnillo gold production rebounds as price hits new record

Wed Oct 23 2024

Fresnillo PLC (LSE:FRES) has reported a sharp rebound in gold production just as the precious metal price hit a new all-time high of US$2,753 an ounce. Octavio Alvídrez, chief executive, said: “In gold, we have delivered a rapid recovery at Herradura after the mine plan was impacted by heavy rains earlier in the year, with gold production increasing 40% quarter on quarter.

“At Ciénega, we have delivered a strong increase in gold output year to date, a testament to the outstanding work of the team on the ground.” Overall, he said the Mexico-based miner's quarter was solid and in line with its consistent operating performance all year.

Gold production (gross) in the three months to September jumped more than 20% to 156,000 oz, while silver another metal at an all-time high, saw a small dip in output to 14.4 million oz. Alvídrez added in silver, Saucito and San Julián Veins performed very well, helping to offset slightly lower output at Fresnillo.

Year to date gold production is 427,600oz, down 6.6% year-on-year due to lower ore grade and recovery rate at Herradura and the mine closure plan at Noche Buena. Guidance for the year remains unchanged at 55.0 to 62.0 moz attributable silver production, attributable gold production in the range of 580 to 630,000 oz or in silver terms a total of 101-112 million ounces.

Fresnillo added that a fatal accident occurred during the third quarter at the Ciénega mine. In the statement it said it was deeply saddened by the incident and remained committed to achieving a zero fatalities target.

Source: https://www.proactiveinvestors.co.uk/