Attributable gold manufacturing for 2022 can also be anticipated to lower, staying within the vary of 600,000 to 650,000 ounces, pushed primarily by the Noche Buena mine coming to the tip of its productive life.
The brand new steerage was supplied alongside an replace on 2021 manufacturing, with silver output falling “marginally quick” of forecast figures, however gold manufacturing topping expectations.
Silver output in 2021 reached 53.1 ounces of silver, barely under the 53.5 to 59.5 million ounces of silver (together with Silverstream) beforehand anticipated, however flat when in comparison with 2020.
Attributable gold manufacturing for the complete yr got here in forward of expectations, however was nonetheless down 2.4% year-on-year at 751,200 ounces. Fresnillo stated this was as a result of decrease ore grade at Cienega, and decrease grade and quantity processed on the San Julian Veins. This was offset by a better quantity and grade at Noche Buena.
The corporate confronted operational challenges final yr on the Herradura mine, with elevated silt proscribing the plant’s filter capability, Fresnillo stated. Manufacturing on this interval was down 30% year-on-year at 150,300 ounces, which was additionally a 13% drop from the earlier quarter.
The principle impediment, nevertheless, has seen the dearth of certified employees, the corporate stated.
“As reported within the third quarter of 2021, the labour reform in Mexico proscribing the flexibility to subcontract labour got here into impact from September 1, ensuing within the requirement to internalize a excessive proportion of our contractor workforce,” Fresnillo stated.
“This in flip has affected gear availability (gear beforehand supplied by contractors and upkeep work beforehand carried out by contractors) and utilization charges (turnover and vacancies),” it added.
Wanting forward, chief government officer Octavio Alvídrez stated the corporate’s priorities have been. “We should proceed to navigate the challenges introduced by each covid-19, which regrettably is once more accelerating in Mexico (…) in addition to proceed to adapt to the brand new labour reform,” he stated. “The security of our individuals is our precedence, as is making certain we proceed to roll-out our efficiency enchancment measures throughout our portfolio.”
Fresnillo stated it has taken motion to handle these points, together with recruitment campaigns, coaching and funding in new gear, which might proceed.
Shares within the firm have been buying and selling 13.6% all the way down to £695.8 by mid-afternoon in London. Fresnillo’s market capitalization sit at £5.92 billion (about $8bn).
