Fresnillo cuts 2019 production, cites challenging times
Shares in Fresnillo (LON:FRS), the world’s largest silver miner, dropped by almost 5% to the bottom of the FTSE 100 after it cut its annual production targets, citing lower-than-expected ore grades and construction delays at its gold mines in Mexico.
The company, one of the 100 business with the highest market capitalization listed on the London Stock Exchange, revised its silver guidance for 2019 to between 55 million and 58 million ounces, down from a previous range of 58 million to 61 million ounces.
The world’s largest silver miner cut expected output for 2019 to between 55 million and 58 million ounces, down from a previous range of 58 million to 61 million ounces
Expected gold production for the year, in turn, was reduced to between 880,000 and 910,000 ounces, from the previously guided 910,000 to 930,000 ounces. The company, which is also Mexico’s second largest bullion producer, attributed the decrease to both lower grades and delays in the construction of a leaching pad at its Herradura mine.
During the three months leading up to June 30, Fresnillo’s silver production, including its silverstream contract, fell 6% to 14.4 million ounces, from 15.3 million ounces in the year-earlier period. Gold production fell 5.4% to 221,307 ounces.
Fresnillo also flagged a negative cost impact for the first half of the year of around $135 million due to previously disclosed accounting reclassifications and growth initiatives, among other factors.
“As we have previously guided, we expect 2019 to be challenging and we remain cautious,” CEO Octavio Alvidrez said in the statement.
He noted, however, that production had continued to recover to targeted levels since the first quarter. He also said that Fresnillo was starting to see the positive impact of operational measures and investments it had made into infrastructure, equipment and infill drilling.
The company, which floated in London in 2008, is 75% owned by Mexican billionaire Alberto Bailleres and Saucito, the world’s largest silver operation, is its flagship operation.
Fresnillo last traded in London at 896.8p per share, 2.7% lower than the previous day. The Mexico-focused miner’s market capitalization now sits at £6.6 billion (about $8.2bn).
source: MINING.COM
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
