Fresnillo issues production report

Fresnillo has reported a 7% increase in quarterly silver production compared to the same quarter in 2015, with quarterly gold production up nearly 21% on the same basis, driven by the start-up of San Julian and strong performances from the Saucito, Herradura and Noche Buena mines.

"The milling facility servicing phase 1 at San Julian is processing ore and the leaching plant has been operating normally since August, and we are now operating at full capacity. However, due to a combination of external factors we now expect phase 2 to be commissioned in the second quarter of 2017," said CEO Octavio Alvidrez in a statement.

"The turnaround plan at Fresnillo continues to progress, although not at the pace at which we had originally planned," he added.

"We continue to expect an increase in silver grades and production for the full year compared to 2015, however, recently volumes processed have come under pressure as a result of some equipment availability and personnel issues.

"Importantly, we remain on track to meet our full year production guidance of 850-870 koz gold and 49-51 moz of silver (including Silverstream)."


- Quarterly silver production of 11.8 moz (including Silverstream), up 6.7% vs. 3Q15 mainly due to the start-up of phase 1 of San Julian, increased ore processed at Saucito and an increased contribution from the Silverstream

- Quarterly silver production down 9.4% vs. 2Q16 mainly due to the expected lower ore grades and lower recovery rate at Saucito

- Year to date silver production of 37.0 moz (including Silverstream), up 6.3% on the same period of 2015 as a result of the start-up of San Julian, increased volumes processed at Saucito and higher silver ore grades at Fresnillo and Cieenega

- Quarterly gold production of 220 koz, up 20.9% vs. 3Q15, due to higher volumes processed and higher ore grades at both Herradura and Noche Buena

- Year to date gold production of 667 koz, up 22.3% on the same period of 2015, due to higher speeds of recovery at Herradura and Noche Buena, and higher volumes processed at Herradura

- At San Julian (phase 1), the milling facility is processing ore and the leaching plant has been operating normally since August; phase 2 commissioning now expected 2Q17 due to external factors

- On track to achieve our recently raised full year gold guidance of 850-870 koz and our full year silver guidance of 49-51 moz (including Silverstream)