Fresnillo gold and silver production slows quarterly; confirms outlook

Fresnillo PLC on Wednesday reaffirmed its outlook for this year and the following two years, as it reported a quarterly fall in gold and silver output amid a decline in ore grade processed.

The Mexico-focused precious metals producer reported attributable gold production in the first quarter that ended March 31 is up 11% on-year, as a result of higher ore grade, increased volumes of ore process and recovery rates at Herradura, though offset by lower ore grade at Saucito and lower ore grade and volume of ore processed at Cienega.

Attributable silver production for the quarter, however, was down 8.4% from the year before, due to the cessation of mining activities at San Julian, as well as a decreased ore grade and volume of ore processed at Cienega.

Against the prior quarter, gold production fell 24% to 156,100 ounces and silver production declined 9.7% to 12.4 million ounces.

Fresnillo maintained its prior outlook for 2025, with attributable silver production expected between 49.0 million and 56.0 million ounces and attributable gold production expected between 525,000 and 580,000 ounces.

This would be lower than silver production of 56.3 million ounces and gold production of 631,573 ounces in 2024.

Attributable lead production for 2025 is forecast at 56,000 to 62,000 ounces, and attributable zinc production is projected to be between 93,000 and 103,000 ounces.

This would be down from an attributable lead production of 66,400 tonnes and an attributable zinc production of 116,646 tonnes in 2024.

For 2026 and 2027, Fresnillo said expected output is unchanged.

Fresnillo shares fell 6.5% to 972.00 pence each on Wednesday morning in London.

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