(Kitco News) - Fresnillo (LSE: FRES), the world's largest primary silver producer, announced today that in Q3 2022, its attributable silver production of 13.6 moz increased 7.4% vs. Q3 2021 due to the higher contribution from Juanicipio, higher ore processed and ore grade at Fresnillo and higher ore grade at Saucito.
However, the company's Q3 2022 attributable gold production of 159.2 koz decreased 7.7% vs. Q3 2021 mainly due to a lower recovery rate as higher volumes of sulphide ore are processed and lower ore grade at Herradura, and a decrease in volume of ore processed and lower ore grade at Noche Buena and Ciénega.
Fresnillo added that its quarterly attributable by-product lead and zinc production increased 3.1% and 11.5% vs. Q3 2021 respectively, mainly due to a higher volume of ore processed at Fresnillo and the increased contribution at Juanicipio.
Importantly, the company said it remains on track to meet its 2022 full year guidance of 50.5 to 56.5 moz of attributable silver and 600 to 650 koz of attributable gold production.
CEO Octavio Alvídrez commented, "We have delivered a solid quarter of production, with continued improvement in volumes at both Fresnillo and Saucito particular positives, albeit this was partially offset with the lower ore throughput and expected grade variability at San Julián Disseminated Ore Body.
"Recruitment and training campaigns are on-going in what remains a very tight labour market in Mexico, which, alongside industry wide supply bottlenecks, is making for a challenging operating environment. Nonetheless, we are confident in the overall performance of the business and our full year production guidance remains unchanged."
"Our focus in the final quarter is to achieve our 2022 targets, continue to drive volumes in the Fresnillo District, and deliver a rapid ramp up of our new Juanicipio mine, while always prioritising the safety and wellbeing of our people," he added.
Fresnillo is the world's largest primary silver producer and Mexico's largest gold producer. Fresnillo has seven operating mines, all of them in Mexico - Fresnillo, Saucito, Ciénega, Herradura, Soledad-Dipolos, Noche Buena and San Julián, two development projects - the Pyrites Plant at Fresnillo and Juanicipio, and a number of exploration projects. Fresnillo has mining concessions and exploration projects in Mexico, Peru and Chile.
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