FRES Fresnillo Plc

(Adds share-price move and reasons for reduced silver-output guidance)

 
   By Oliver Griffin 
 

Shares in Fresnillo PLC (FRES.LN) fell Wednesday after it lowered its guidance for silver production, citing lower ore grades and limited availability of processing water at its ramped-up San Julian mine in Mexico.

The Mexico-focused miner of precious metals said that second-quarter silver production rose 5.7% to 15.3 million ounces, but it fell 0.5% compared with the first quarter.

Shares at 0930 GMT were down 5% at 1,050.50 pence.

Increases in silver output following the ramp-up of second-phase operations at San Julian were offset by a lower grade of ore at the Sabinas mine, the first phase of San Julian, and its eponymous Fresnillo mine.

Fresnillo said that higher grades boosted gold output in the second quarter, pushing production up 4.6% on year to 233,841 ounces.

As a result of the softer silver output, Fresnillo said it has revised its silver guidance for the year to a range of 64.5 million-67.5 million ounces from 67 million-70 million ounces previously.

The company raised its total gold production guidance for the year to a range of 870,000-900,000 ounces, but it said full-year consolidated production guidance--recorded in silver-equivalent ounces--remained broadly in line with previous forecasts.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

July 25, 2018 06:08 ET (10:08 GMT)

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