Fresnillo is on track but gold output declines

 
Suzie Neuwirth

MEXICAN miner Fresnillo said yesterday that it is on track for 2014, despite a significant decline in gold production in the first quarter.

Output of the yellow metal fell by 29.7 per cent compared to the same quarter the previous year to 82,653 ounces, mainly due to suspended operations at the Soledad-Dipolos project and the temporary suspension of explosives permits at the Herradura mine.

But the FTSE 100 firm said that gold production rose by 9.3 per cent compared to the last quarter of 2013, due to resumed operations at Heradura in March, with output expected to return to normal levels in the next quarter.

Silver output went up 3.5 per cent to 10.4m ounces, due to increased ore volumes at the Saucito mine and higher ore grades at Sabinas.

Fresnillo said it is on track to produce 43m silver ounces and 450,000 gold ounces in 2014.

“We are confident that the consistent execution of our strategy will contribute to achieving our 2014 goals and continue to lay the groundwork for further growth,” said chief executive Octavio Alvidrez.

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