LONDON (ShareCast) - (ShareCast News) - Precious metals miner Fresnillo posted a rise in the production of silver and gold for the third quarter on Wednesday as it said it remains on course to achieve its output targets for 2017.
In the three months to 30 September, silver production was up 24.1% versus the same period last year to 14.6m ounces, mostly due to the start of Phase II operations at the San Julián mine and the ramp-up of phase I.

Meanwhile, gold production increased 6.1% compared to the same quarter a year ago to 233,000 ounces thanks to the contribution from San Julián, a reduction in gold inventories and increased volume of ore deposited at Herradura.

Fresnillo's outlook was left unchanged, with 2017 gold production guidance of between 870,000 and 900,000 ounces and silver production of between 58m and 61m ounces.

Chief executive officer Octavio Alvídrez said: "I am pleased to report a good operating performance this quarter.

"In particular, the positive contribution from the new San Julián mine has driven the expected rise in silver production. San Julián Phase II was commissioned on time and on budget, and the project reached nameplate capacity as expected during the quarter, again highlighting our ability to bring new mining projects to fruition. We continue to implement our turnaround plan at the Fresnillo mine and now expect an increase in silver production for the year of between seven and eight per cent.

"The combination of a strong performance from San Julián and continued decrease in inventories at Herradura also drove a rise in gold production and more than offset lower recoveries and grades at Noche Buena and Ciénega respectively.

"We remain on track to meet our gold and silver production targets for 2017."

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