Fresnillo, a leading Mexican precious metals mining company, reported a decline in gold and silver production for the second quarter of 2024, while noting an increase in lead and zinc output. The company has reaffirmed its annual production guidance for both gold and silver.
In Q2 2024, gold production was recorded at 130,025 ounces, down from 152,380 ounces in the same period last year. This decline is attributed to lower ore grades and a reduced recovery rate at Herradura, as well as the mine closure plan at Noche Buena.
Total silver output, including Silverstream, fell to 14,655 thousand ounces from 14,860 thousand ounces in the previous year. The decrease is due to lower ore grades, decreased volume of ore processed, and lower recovery rates at San Julian DOB, and reduced volume of ore processed and lower ore grade at Fresnillo. However, this was partially offset by higher ore grades and increased volume of ore processed at San Julian Veins and Saucito, along with higher ore grades at Cienega.
Conversely, lead production improved to 16,906 tons from 13,994 tons a year ago. Zinc production increased to 29,240 tons, up from 25,670 tons in 2023. The rise in by-product lead and zinc production is due to higher ore grades and increased volume of ore processed at Saucito, and higher ore grades at Fresnillo and Juanicipio, although this was partially offset by decreased contributions from San Julian DOB as it nears the end of its life.
Looking ahead, Fresnillo maintains its full-year production guidance, expecting gold output to range between 580 thousand ounces and 630 thousand ounces, and silver output to range between 55 million ounces and 62 million ounces. 
