FRES Fresnillo Plc

By Carlo Martuscelli

Fresnillo PLC (FRES.LN) said Wednesday that gold production fell in the third quarter, while silver production increased, but not by as much as expected.

Gold production for the three months ended Sept. 30 totaled 225,000 ounces, down 3.5% compared with the third quarter of 2017. The decrease was down to lower grades and volumes of ore, as well as a faster-than-normal recovery rate at the leaching pads the year before.

Compared with the previous-year period, silver production increased to 15.5 million ounces from 15.3 from million ounces.

The company said that despite the increase, silver production fell short of expectations due to lower-than-expected ore grades. As a result, Fresnillo said it revised its full-year silver production guidance to between 62 million ounces and 64.5 million ounces. Previously it guided for between 64.5 million ounces and 67.5 million ounces.

Gold production guidance has been increased to between 920,000 ounces and 940,000 ounces from between 900,000 ounces and 930,000 ounces, following the strong performance at the Saucito and Noche Buena mines, it said.

The company said it expects to complete construction of a floatation plant at the Fresnillo mine by the end of 2019.

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com

(END) Dow Jones Newswires

October 24, 2018 02:36 ET (06:36 GMT)

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