SILVER shone for FTSE 100 miner Fresnillo in the last quarter, with production beating analysts’ estimates and putting the firm on track for its full-year silver target.
Quarterly silver output rose 7.6 per cent year on year, which was 10 per cent higher than Deutsche Bank’s forecast.
However, all that glitters was not gold for Fresnillo, with production of the yellow metal down by 9.8 per cent over the period. The hit to gold output was anticipated due to the suspension of Fresnillo’s explosives permit, which had been lifted at the Noche Buena mine in Mexico but not at Herradura.
“We remain on track to reach our full year silver production target following an excellent quarter of silver production, driven by robust performances at both Saucito and Cienega,” said chief executive Octavio Alvidrez. “As previously noted, we expect that the temporary suspension of the explosives permits at Herradura will be lifted over the coming week, at which point we will provide a further update regarding gold production guidance for 2013.”
Shares closed 1.6 per cent higher.