Fresnillo 4Q Silver Production Up 9.5%; Fiscal Year in Line With Guidance

By Ian Walker

LONDON--Fresnillo PLC (FRES.LN) Wednesday reported a 9.5% rise in silver production during the fourth quarter of 2016, compared with the year earlier, taking the full-year total to 50.3 million ounces, in line with guidance.

The Mexican precious metals group said the increased production reflected mainly the start-up of phase 1 of San Julian, a higher ore grade at Cienega and an increased contribution from the Silverstream.

For 2017, the company expects to produce 58 million ounces to 61 million ounces of silver, and 870,000 ounces to 900,000 ounces of gold.

Fresnillo produced 13.3 million ounces of silver in the quarter ended Dec. 31, compared with 11.8 million ounces in the earlier quarter and 12.2 million for fourth quarter of 2015.

It previously guided for 49 million ounces to 51 million ounces of silver production for the year, including Silverstream.

The firm also produced 268,104 ounces of gold in the latest quarter, compared with 219,840 ounces in the earlier quarter and 215,892 for fourth quarter of 2015.

For the year, total gold production was 935,513 ounces, compared with guidance of 850,000 ounces to 870,000 ounce.

Gold production was boosted by reduced gold inventories at Herradura, the San Julian start-up and an improved overall average speed of recovery at Noche Buena contributed, Fresnillo said.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

January 25, 2017 02:40 ET (07:40 GMT)

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