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(Kitco News) - Fresnillo (LSE: FRES), the world's largest primary silver producer, announced today that in Q1 2023, its attributable silver production of 13.1 moz remained flat (-0.9%) compared to Q1 2022 primarily due to the lower ore grade and decreased volume of ore processed at San Julián (DOB) and Ciénega, offset by the increase in volume of ore processed at Fresnillo and higher ore grade at San Julián Veins.
However, the company said that its Q1 2023 attributable silver production was up 5.1% compared to Q4 2022 mainly due to a higher ore grade at San Julián (DOB) and the increased contribution of ore from Juanicipio, partly offset by the lower volume of ore processed at Saucito.
Fresnillo’s quarterly attributable gold production of 173.0 koz was up 15.5% over Q1 2022 primarily due to the higher volume of ore processed and ore grade at Herradura and the higher ore grade at Saucito, partly offset by the decrease in gold production at Noche Buena.
Compared to Q4 2022, the company’s attributable gold production was up 3.0% mainly due to the higher ore grade at Saucito and higher ore grade and recovery rate at Herradura, partly offset by the lower recovery rate and decrease in ore grade at Noche Buena.
On a silver equivalent basis, the company produced 27.0 moz in Q1 2023, which is an increase of 7% compared to 25.3 moz produced in Q1 2022 and an increase of 4% compared to 25.9 moz produced in Q4 2022.
Importantly, the company said that its 2023 guidance remains unchanged. Fresnillo expects its attributable silver production to be in the range of 57.0 to 64.0 moz while attributable gold production is expected to be in the range of 590 to 640 koz. Expressed in silver equivalent ounces, production is expected to be 104 -115 million ounces.
CEO Octavio Alvídrez commented, "I am pleased to report a solid start to the year. Silver and gold production are both up on the previous quarter driven by the increasing contribution from our new Juanicipio mine and the strong performance at our Herradura gold mine in particular. We have a very clear set of priorities that we are focused on in the second quarter. This includes the continued safe ramp up of the Juanicipio plant now that we have successfully completed the commissioning phase, while also progressing the tie-in to the national power grid of our new Pyrites Plant.
“Both of these projects will support our production objectives into the future. We have successfully managed through considerable recent challenges, reaching a sound level of operational consistency, putting us well on track to meet our full year production guidance."
Fresnillo is the world's largest primary silver producer and Mexico's largest gold producer. Fresnillo has eight operating mines, all of them in Mexico - Fresnillo, Saucito, Juanicipio, Ciénega, Herradura, Soledad-Dipolos, Noche Buena and San Julián (Veins and Disseminated Ore Body), one development project - the Pyrites Plant at Fresnillo, which has been completed and is awaiting tie-in of the plant to the national electricity grid, and four advanced exploration projects - Orisyvo, Rodeo, Guanajuato and Tajitos as well as a number of other long term exploration prospects. Fresnillo has mining concessions and exploration projects in Mexico, Peru and Chile.
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