MiningGold & silver
Fresnillo PLC

Fresnillo slumps as it cuts 2019 production guidance

Fresnillo said gold and silver production dropped in the second quarter

Fresnillo
Fresnillo was one of the top fallers on the FTSE 100 in morning trading

Fresnillo plc (LON:FRES) shares dropped as the miner reduced its production targets for the year after lower-than-expected ore grades and delays in construction at its Herradura gold mine in Mexico hit second quarter output. 

The group cut its 2019 gold output forecast to 880,000-910,000 ounces from a previous target of 910,000-930,000 ounces and sliver production to 55-58mln ounces from 58-61mln ounces.

Second quarter gold production fell 5.4% to 221,307 ounces and silver production decreased 6% to 14.4mln ounces.

The company said adjusted production costs for the first half was expected to be US$135mln more than last year due to lower ore grades and issues at its Herradura gold mine.

Fresnillo reiterated the warning it issued in May when it said that 2019 would be more challenging than last year.

"However, we will continue to work hard to ensure the improvements we have seen this quarter are maintained in the second half of the year," said chief executive Octavio Alvidrez.

Shares declined 1.2% to 910p in morning trading.

Quick facts: Fresnillo PLC

Price: £6.56

Market: LSE
Market Cap: £4.83 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

JCurve Solutions further expands into Asia as part of new growth strategy

JCurve Solutions (ASX:JCS) chief executive officer Stephen Canning updates Proactive Investors on its further expansion into the asian market, with a new base recently announced in Manila, Philippines. The cloud technology and service provider now holds officers in Sydney, Melbourne,...

32 minutes ago

2 min read