(Alliance News) - Gold miner Fresnillo PLC on Wednesday reported a double-digit fall in production of the precious metal due to lower volumes at its Herradura mine in Mexico.
The FTSE 100-listed firm added that it has put new measures operationally "in place to combat Covid-19" but kept its full-year guidance under review due to uncertainty over the pandemic.
Gold production in the three months to March 31 was down 16% to 196,963 ounces from 233,744 in the fourth quarter of 2019.
Silver production, including Silverstream, fell 4.0% quarter-on-quarter to 13.2 million ounces.
Also in the first quarter, lead output was down 7.7% quarter-on-quarter and zinc fell 8.8%.
"Operationally, quarterly silver production was in line with expectations, down slightly against the previous quarter mainly due to lower grades at San Julian DOB. Gold production was also in line with expectations, down against the previous quarter due to lower volumes of ore processed at Herradura. We expect production to be back-end-weighted this year," Chief Executive Officer Octavio Alvidrez said.
"I would like to thank everyone at Fresnillo for the calm way in which they have adapted to the new measures we have put in place to combat Covid-19 and their professional conduct during this difficult time. We continue to work with both the Federal and local authorities to agree on best practice protocols under which the mining industry can continue to operate."
Fresnillo, keeping its full-year forecasts under review, noted "the evolving situation with regards to Covid-19".
Shares in FTSE 100 miner were 2.5% higher at 722.00 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Fresnillo (FRES)