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Fresnillo output rises

26 July 2017 09:55

Fresnillo's silver production - including Silverstream - rose to of 14.5 moz in the second quarter, 11.7% up on a year ago and 7.3% higher than the previous three months.

First half silver production totalled 28.0 moz, up 11.2% on a year ago.

It said this was primarily due to the start of operations at San Julian (phase I), higher ore processed at Fresnillo and higher ore grade at Cienega.

The group said quarterly gold production totalled 223 koz, up 2.7% on a year ago as a result of the contribution of San Julian (phase I).

It said the The turnaround plan at the Fresnillo mine continued to show positive signs as volume of ore processed increased for the fourth consecutive quarter and the group was on track to achieve 2017 production guidance of 58-61 moz silver (including Silverstream) and 870-900 koz gold.

Chief executive Octavio Alvídrez said: "I am pleased to report strong first half production results, with 28 million ounces of silver and over 445 thousand ounces of gold produced across our operating mines and from the Silverstream.

"The increase in silver production was primarily driven by the contribution of San Julián phase I and the higher ore processed at Fresnillo following the measures taken to increase production at the mine. "Quarterly gold production also benefitted from the operations at San Julian (phase I), more than offsetting the expected lower production at Herradura and Noche Buena, and the lower gold ore grade at Saucito. "We continue to advance our development projects. I am pleased to announce that the construction of San Julián (phase II) was concluded on time and on budget, and following tests with load in the second quarter, commercial production commenced in mid-July. "Our short-term focus will be on ramping-up San Julian (phase II) to full capacity within the next two months and operating the Fresnillo mine once again at full capacity by year-end, whilst continuing to develop the infrastructure in order to prepare the mine for the future expansion.

"With this progress, we remain on course to meet our 2017 production guidance of 58-61 million ounces of silver and 870-900 thousand ounces of gold."

At 9:55am: (LON:FRES) Fresnillo PLC share price was +11p at 1539p

Story provided by StockMarketWire.com

Related Company: FRES

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