Fresnillo PLC on Wednesday firmed its full-year guidance, after recording higher silver production and increased production levels overall during the first half.

For the three months to June 30, the London-based precious metals group operating in Mexico reported total silver production of 14.9 million ounces, up 3.5% from 14.4 million ounces year-on-year.

On a quarterly basis, silver production rose 15% from 12.3 million ounces. Fresnillo said this was mainly driven by the ramp-up of Juanicipio and, to a lesser extent, a higher ore grade at the San Julian disseminated orebody.

Meanwhile, gold production fell 4.1% to 152,380 ounces from 158,960 ounces a year prior, primarily due to a decrease in gold production at Noche Buena.

Output fell 12% from 173,034 ounces the previous quarter. Fresnillo said this was mainly due to the lower volume of ore processed at Herradura, after operations were temporarily suspended following an illegal stoppage by a group of unionised employees.

Total lead production was 13,994 tonnes, down 3.7% from 14,535 year-on-year, and up 4.7% from 13,368 tonnes the previous quarter.

Total zinc production was 25,670 tonnes, down 4.2% from 26,808 tonnes year-on-year, and up 6.4% from 24,118 tonnes the previous quarter.

Looking ahead, Fresnillo maintained its guidance for 2023.

Attributable silver production is expected to be in the range of 57.0 to 64.0 million ounces, including Silverstream, while attributable gold production is expected to be in the range of 590,000 to 640,000 ounces.

However, Fresnillo said it expects cost inflation and the revaluation of the Mexican peso versus the dollar to continue to raise costs in the second half of the year following an increase in the first.

Fresnillo re-emphasised a focus on safety, following a fatal accident at the Saucito mine in the last week of June. It said it had carried out a thorough investigation of the incident to ensure ‘all lessons can be learned’.

The FTSE 100 company will announce interim results on August 1.

Fresnillo shares were trading 1.1% lower at 625.00 pence each in London on Wednesday morning.

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