Mexico‘s Fresnillo plc reported attributable silver production of 56.3 million ounces (including Silverstream) in 2023, up 4.7% year-on-year.

The result was driven by increased production at Juanicipio and higher ore cut-off grades at the San Julián veins. 

Fresnillo plc also reported that its attributable gold production due 610,600oz, down 4.0% versus 2022, in line with forecasts, due to lower gold production at Noche Buena as it neared the end of its life-of-mine, partially mitigated by the increase at Juanicipio and higher ore grade at Herradura. 

During 2023, the average silver price was $23.6 and the average gold price was $1,957.7, an increase of 8.8% for both. 

While the average price of zinc decreased by 22.6%, the average price of lead remained practically unchanged at US$0.95 per pound. 

The fact that silver and gold prices did not fall below $20 and $1,800 respectively demonstrates the strength and long-term sustainability of these metals, even in times of economic hardship. 

Silver Production

Fresnillo plc’s global silver reserves decreased 10.0% to 356.6 million ounces, mainly due to mine depletion and higher costs and grades at San Julian, Juanicipio and Cienega, partly offset by higher ore reserves at Fresnillo. 

Consolidated global gold reserves decreased 13.7% to 7.1 million ounces, mainly due to depletion and higher costs and cut-off grades at Herradura and Saucito, as well as the completion of mining at Noche Buena.

Context

Although global macroeconomic issues, such as inflation and the slow recovery of certain economies, the current tensions between the United States and China, and the wars in Ukraine and the Middle East, will dampen confidence and test Fresnillo plc’s performance targets, Fresnillo plc’s Chairman, Alejandro Baillères, commented that Fresnillo plc will continue to work together with its stakeholders to improve productivity.