Fresnillo plc reduces its silver production 2.9% in 2020

Mexican mining company Fresnillo plc reported that it produced 53 million 050,000 ounces of silver in 2020, a decrease of 2.9% year-on-year.

As expected, total silver production was stable and within company guidance at 53.1 million ounces.

As there were fewer workers on site due to Covid-19 preventative measures, Fresnillo plc recorded lower silver production.

In addition, the result was influenced by a lower grade of ore processed in Saucito.

Both factors were mitigated by higher grade at the San Julián Disseminated Mineral Body and the processing of development ore from its new Juan Municipio mine for the first time.

Worldwide, it is the largest producer of primary silver and, in Mexico, the largest producer of gold.

Fresnillo plc

The company has seven mines in operation, all in Mexico:

  • Fresnillo
  • Saucito
  • Ciénega (including the San Ramón Las Casas Rosario & Cluster Cebollitas satellite mine)
  • Horseshoe
  • Soledad-Dipolos (operations suspended)
  • Good night
  • San Julián (veins and body of disseminated mineral).

Fresnillo plc also operates three development projects: the Pyrite Plant in Fresnillo, the optimization of the beneficiation plant also in Fresnillo and Juaniciple, and six advanced exploration projects: Orisyvo, Centauro with great potential and Centauro Deep, Guanajuato, Rodeo and Tajitos.

Financial results

Fresnillo plc recorded a 12.2% year-on-year decline in its gold production in 2020, to 769,618 ounces.

But its revenue climbed 14.6% to $ 2.43 billion.

Even better, Fresnillo plc’s earnings soared 82.5% to $ 375.6 million.

The company has mining concessions and exploration projects in Mexico, Peru and Chile.