Mexico's Fresnillo remains on track to meet 2024 guidance

Mexican silver and gold miner Fresnillo said it remains on track to meet its full-year guidance after achieving attributable silver production of 14.6Moz and attributable gold production of 130,000oz in Q2.

Fresnillo expects attributable silver production to be 55.0-62.0Moz (including Silverstream) in 2024, while guidance for attributable gold production is 580,000-630,000oz.

“The group has maintained the steady operating performance demonstrated in the first quarter, and we remain on track to meet full-year guidance. I am particularly pleased with the strong output from Saucito, which has offset a slightly weaker performance at the Fresnillo mine,” CEO Octavio Alvídrez said in a statement. 

“I would also like to highlight the excellent work done by the team at Juanicipio where we have gained access to higher-grade areas, and Ciénega, where we have reported a strong rise in gold output.”

According to statistics office Inegi and mining chamber Camimex, Fresnillo was Mexico’s largest gold mining company in 2023 and its Herradura operation in Sonora state was the second top-producing mine with 355,500oz.

Last year, Fresnillo was forced to continue operating in a challenging environment affected by lengthier permitting processes and the strong peso, chairman Alejandro Baillères said in May.

Attributable silver production was up 8.4% in Q2 over the previous quarter due to the increase in the volume of ore processed and higher grades at Saucito, the higher volume of ore processed, grades and recoveries at Juanicipio and higher grades at Ciénega, the company said.

However, Fresnillo added that quarterly attributable silver production was down 1.4% year-on-year mainly due to the lower grades, decreased volume of ore processed and lower recoveries at San Julián DOB and a decrease in volume of ore processed and lower grades at Fresnillo, partly offset by the higher grades and increased volume of ore processed at San Julián Veins and Saucito and higher grades at Ciénega.

Quarterly attributable gold production was down 7.7% versus Q1, mainly driven by the lower recovery rate and grades at Herradura and lower grades at Saucito, partly mitigated by the higher grades at Fresnillo and the contribution from Noche Buena, the company said.

Quarterly attributable gold production was down 14.7% compared to Q2 last year, primarily due to the lower grades and recoveries at Herradura and the mine closure plan at Noche Buena. This was partly offset by the higher grades and increased volume of ore processed at San Julián Veins and the higher grades at Fresnillo.

Quarterly attributable byproduct lead and zinc production were up 20.8% and 13.9% versus 2Q23, respectively, due to higher grades and the increase in volume of ore processed at Saucito, and higher grades at Fresnillo and Juanicipio, partly offset by the decreased contribution from San Julián DOB as it approaches the end of its life.