Fresnillo PLC on Tuesday reported an increase in its annual attributable silver production, but said gold output fell.

The gold and silver miner in Mexico said annual silver equivalent production met guidance of 105.1 million ounces, with gold, lead, and zinc also coming within guided ranges.

Silver production rose 4.7% year-on-year, following the ramp up at Juanicipio and higher ore grade at San Julian Vein, but was below expectations.

Attributable silver production was 56.4 million ounces in 2023, up 5.0% from 53.7 million oz a year ago. Meanwhile, in the fourth quarter, production was 14.2 million, unchanged from the previous quarter.

As for annual attributable gold production, Fresnillo reported a 4.0% drop to 610,600 oz from 635,900 in 2022. However, in the final quarter of the year, the firm saw output jump 15% to 152,600 from 132,627 in the third quarter.

Looking ahead, Fresnillo left its 2024 guidance unchanged, continuing to expect attributable silver output 55.0-62.0 million. It also maintained its attributable gold output guidance of 580,000 to 630,000 oz. In addition, the firm expects 101 to 112 million silver equivalent ounces in 2024.

Chief Executive Officer Octavio Alvidrez said: ‘This year we overcame many operational challenges, which is a testament to the strong and determined teams we have across our sites. We successfully ramped up production at our new mine, Juanicipio, reaching full nameplate capacity.

‘Our priorities for 2024 are clear. Safety is key, and we will continue working hard to instil a true culture of safety across our operations. We will continue to identify cost reduction initiatives to address inflation, while we will also focus on efficiencies across all our mines.’

Shares in Fresnillo rose 5.5% to 507.20 pence each in London on Wednesday morning.

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