Fresnillo cuts FY gold production guidance
South American miner Fresnillo cut full year gold production guidance due to coronavirus-related disruption and lower ore grades.
Silver production guidance for the full year remained in the range of 51m – 56m ounces. Third quarter production fell 2.3% to 13.3m ounces (including Silverstream), driven by a lower ore grade and volume of ore processed at Fresnillo.
The company on Wednesday said gold production was now expected to be in a range of 745,000 - 775,000 ounces, down from 785,000 - 815,000 previously forecast, citing a reduced number of workers at its Herradura mine due to Covid-19 preventive measures, lower-than-expected ore grades and restricted access to deeper areas at the Noche Buena mine.
Gold production in the quarter fell 6.3% quarter on quarter to 172.7koz due to the lower overall speed of recovery and ore grade at both Herradura and Noche Buena.
Quarterly attributable by-product lead and zinc production decreased 6.4% and 1.5% respectively in the third quarter from the second, driven primarily by lower ore grades at Fresnillo, the company said.