By Samuel Indyk
Investing.com – Shares in Fresnillo were propping up the FTSE 100 on Wednesday after the world’s largest primary silver producer reported a fall in silver production in Q1.
In the first quarter, attributable silver production was 12.6 moz, down 2.4% quarter-over-quarter (QoQ). The decline was driven by a lower volume of ore processed as San Julián Disseminated Ore Body and a lower ore grade at Saucito and the Pyrites plant. This was partly mitigated by a higher development ore grade at Juanicipio.
Gold production was up 5.9% QoQ to 228.2 koz, mainly due to a higher ore grade at Herradura and Saucito. This was partly offset by lower volumes of ore processed at Noche Buena and decreased ore throughput and lower ore grade at San Julián Veins.
Outlook
The company maintained 2021 guidance despite the continued uncertainty presented by the current coronavirus situation in Mexico. Attributable silver production is expected between 53.5 and 59.5 moz and gold production is expected between 675 and 725 koz.
“Though the pandemic continues to present certain operational challenges, Fresnillo has started 2021 well with Q1 operations in line with expectations and our full year guidance remains unchanged,” Fresnillo CEO Octavio Alvídrez said in a statement.
At 13:15BST, Fresnillo (LON:FRES) shares were trading lower by 3.5% at 855.6 pence per share.