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Fresnillo PLC on Wednesday said third-quarter production was in line with expectations, despite lower-than-forecast silver output, and said it is ‘on track’ to meet full year guidance. The London- and Mexico City-based silver and gold miner operates eight mines in Mexico and also has mining concessions and exploration projects there and in Peru and Chile. It is one of the world’s largest silver producers and is Mexico’s largest gold producer. Fresnillo said attributable silver output fell 6.6% quarter-on-quarter to 11.7 million ounces in the third quarter to September, mainly reflecting lower grades and reduced processing at several mines. The FTSE 100-listing noted lower ore grade at San Julian Veins, a decrease in volume of ore processed, lower ore grade and decreased recovery rate at Cienega, and a lower volume of ore processed at Saucito, which resulted from slower mining cycles due to the need for additional ventilation in high temperature areas, and reduced availability of in mine equipment. Gold production slipped 4.1% to 151,256 ounces in the third quarter from the secnd, though year-to-date output was up 8.8% on stronger performance at Herradura. Zinc production declined 13% to 24,735 tonnes in the third quarter, but lead output edged up 1.4% to 15,359 tonnes. The miner maintained 2025 guidance of 47.5 to 54.5 million ounces of silver and 550,000 to 590,000 ounces of gold, and said its 2026 and 2027 production outlooks remain unchanged. It produced 56.3 million ounces of silver and 631,573 ounces of gold in 2024. The silver output figures include the Silverstream contract. Shares in Fresnillo were 3.2% higher at 2,180.00 pence each in London on Wednesday morning, leading the FTSE 100 risers. The stock price had plunged 12% on Tuesday after a sharp drop in the price of gold and silver. The yellow metal traded at $4,099.70 an ounce on Wednesday, down from $4,131.30 an ounce at the time of the London equity market close on Tuesday and from $4,345.43 at the same time on Monday. The price of silver was down 0.1% at $48.72 an ounce Wednesday morning, after dropping around 6.8% on Tuesday. Shares in Fresnillo, which have benefited from the stellar gains in metal prices, have nearly trebled in the past 12 months. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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