Fresnillo Reports Mixed Fourth Quarter Production Results; 2024 Outlook Steady
In the latest update from the mining sector, Fresnillo, a player in the precious metals market, has reported varied results in its fourth-quarter production. The company noted a substantial increase in silver output, while gold production witnessed a decline.
Silver Production on the Rise
Fresnillo's fourth quarter saw a 13.1% rise in attributable silver production, reaching 14.16 million ounces, up from 12.52 million ounces in the same period last year. This increase is primarily attributed to several operational improvements and developments. The ramp-up at the Juanicipio project, enhanced ore grade at San Julián Veins, and increased volume of ore processed at Saucito were key contributing factors. However, these gains were partially offset by lower ore grades at the Fresnillo and San Julián mines. Sequentially, silver production saw a marginal increase of 0.4%.
Gold Production Experiences a Dip
Contrasting with silver, Fresnillo's gold output in the quarter decreased by 9.1%, totaling 152.6 thousand ounces. This decline was mainly due to reduced ore processing at Herradura and the ongoing mine closure at Noche Buena. Nevertheless, the company did note a 15.1% sequential increase in gold production, indicating a potential recovery trajectory.
In addition to silver and gold, Fresnillo reported increases in by-product lead and zinc production. Compared to the previous year, lead production rose by 24.6%, and zinc production increased by 25.1%.
Reflecting on the fiscal year 2023, Fresnillo's attributable silver production grew by 4.7%, reaching 56.3 million ounces. However, gold production saw a 4% decrease, with a total of 610.6 thousand ounces. Octavio Alvídrez, the CEO of Fresnillo, highlighted that the company met its full-year guidance with a total of 105.1 million silver equivalent ounces.
