Fresnillo PLC reported on Wednesday a ‘solid’ start to 2023, noting higher quarterly silver and gold production.

The London-based precious metals group operating in Mexico said its quarterly attributable silver production totalled 13.1 million ounces, up 5.1% from 12.5 million in the previous quarter.

Fresnillo said this was driven by a higher ore grade at its San Julian project, as well as the increased contribution of ore from Juanicipio.

Nevertheless, attributable silver production was down 1.5% against 13.3 million ounces in the first quarter of 2022, resulting from lower ore grade and decreased volume of ore processed at San Julian and Cienaga. This was offset by the increase in volume of ore processed at Fresnillo and higher ore grade at San Julián Veins, the company said.

Quarterly attributable gold production totalled 173,000 ounces, up 3.0% against the previous quarter and up 16% against the previous year due to the higher volume of ore processed.

Looking ahead, Fresnillo said its 2023 guidance remains unchanged, as attributable silver production is expected to be between 57.0 and 64.0 million ounces, while attributable gold production is expected to be in the range of 590,000 and 640,000 ounces.

Chief Executive Officer Octavio Alvidrez said: ‘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.

‘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,’ he added.

Shares in Fresnillo were up 0.3% at 735.20 pence each in London on Wednesday morning.

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