April 26 Precious metals miner Fresnillo Plc
said its silver production rose 12.5 percent in the
first quarter due to higher ore grades at its Fresnillo and
Cienega mines in Mexico.
The company, which mines silver and gold at six mines in
Mexico, said silver production hit 12.4 million ounces for the
quarter ended March 31.
Gold production for the quarter, however, fell 3.3 percent
to 222,290 ounces due to lower grades at the company's Herradura
mine and a one-off reduction of inventory levels.
The company said it was on track to meet its 2017 production
guidance of 58 million-61 million ounces of silver and
870,000-900,000 ounces of gold.
Demand for gold, a safe-haven metal, has been robust amid
mounting geopolitical uncertainty across the world, including
Britain's move to leave the European Union.
Meanwhile, the slide in the peso has been pushing costs
lower for Fresnillo, while silver prices are ramping up
on strong industrial demand and the metal's attraction as a
haven from risk.
Spot gold prices have risen 8.4 percent in the first
quarter and silver has gained 14.4 percent, while the
Mexican Peso has weakened 9.6 percent.
(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha