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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 email@example.com; @OliGGriffin
(END) Dow Jones Newswires
October 23, 2019 02:36 ET (06:36 GMT)
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