Record gold and silver output at Fresnillo

Marion Dakers
A RECORD boom in gold and silver output at miner Fresnillo caused investors to rush to buy the stock yesterday.

The Mexico-focused miner said production will be slightly above its full-year targets thanks to a record third quarter.

Gold output jumped 44.4 per cent on the year-earlier quarter to nearly 92,000 ounces in the three months to the end of September, while silver rose 1.2 per cent to reach a record output high of 10.69m ounces, the company said in an interim statement.

Analysts at Numis had expected 9.6m ounces of silver, or 10.4m including the proceeds of Fresnillo’s Silverstream contract, and 81,000 ounces of gold.

“This operational performance was enhanced by the significant increase in metal prices over the period,” said chief executive Jaime Lomelin.

“These factors contributed to a strong overall result in the third quarter and give us confidence that the year as a whole will be one of the most successful in Fresnillo’s history.”

Shares shot up more than four per cent following the announcement yesterday, before closing up 3.3 per cent at £12.82 in heavy trading.