Fresnillo 3Q Production Falls, Sees Fiscal Year Output at Low End of Guidance
October 23 2019 - 2:51AM
Dow Jones News
By Oliver Griffin
Fresnillo PLC (FRES.LN) on Wednesday reported lower production
of silver and gold in the third-quarter of the year and said that
its output of precious metals for the full year is expected at the
lower end of previous guidance.
The precious-metals miner, which is based in Mexico and listed
in London, said total silver production in the three months ended
Sept. 30 fell 15% to 13.3 million ounces, from 15.5 million ounces
in the year-earlier period.
Gold production fell 6.9% to 209,752 ounces. Fresnillo
attributed the fall in output to lower ore grades across its
mines.
Compared with the prior quarter, silver and gold output fell by
7.9% and 5.2% respectively. The continued fall in production will
add more pressure to the company following disappointing results
earlier this year. In the middle of July, Fresnillo reported lower
second-quarter production and cut its full-year production
guidance, citing the effect of lower grades at its namesake
mine.
Between July 17 and Aug. 1, Fresnillo's shares dropped from 895
pence to a low of 570 pence, according to FactSet. Shares are
currently down around 27% versus a year ago.
Fresnillo said in its second-quarter production report that it
had cut its silver production guidance for the year to a range of
between 55 million ounces and 58 million ounces, down from between
58 million ounces and 61 million ounces previously. The outlook on
gold was cut to between 880,000 ounces and 910,000 ounces, down
from between 910,000 ounces and 930,000 ounces.
The company said Wednesday that full-year production will likely
be at the low end of both of these new guidance ranges, although
silver production is expected to show signs of growth in the fourth
quarter.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
October 23, 2019 02:36 ET (06:36 GMT)
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