Fresnillo Reports Higher 3Q Silver, Gold Production; Backs 2017 Guidance

By Adria Calatayud Features Dow Jones Newswires

Fresnillo PLC (FRES.LN) reported Wednesday a 24% rise in silver production and a 6% increase in gold output for the third quarter of 2017, as it backed its full-year guidance.

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The Mexican precious-metals miner, the world's largest primary silver producer, said its silver output stood at 14.6 million ounces in the quarter ended Sept. 30, up from 11.8 million ounces a year earlier. The company attributed the rise to the start of operations on the second phase of its San Julian silver-gold mine in Mexico.

Fresnillo also said third-quarter gold production--the main source of revenue for the company in the first half of this year--was 233,000 ounces, compared with 220,000 ounces in the year-earlier period. The miner said a reduction in gold inventories and increased volume of ore deposited at its Herradura mine in Mexico was the cause of the increase.

The FTSE 100-listed company has produced 42.7 million ounces of silver and 679,000 ounces of gold during the first nine months of the year, up 15% and 2% respectively compared with the same period a year earlier.

Fresnillo maintained its full-year production guidance for gold, at between 870,000 and 900,000 ounces, and for silver at between 58 million and 61 million ounces.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

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(END) Dow Jones Newswires

October 25, 2017 02:40 ET (06:40 GMT)