Fresnillo PLC on Monday said its production guidance for the full year remains unchanged, though the company warned that it continues to struggle with macroeconomic challenges.

Fresnillo is a Mexico City-based gold and silver miner.

According to a statement from Chair Alejandro Bailleres, set to be given at the company’s annual general meeting on Tuesday, Fresnillo’s silver production in 2023 was up on the previous year, though below the company’s expectations.

Gold production was in line with guidance, though below last year’s rate as Fresnillo’s Noche Buena mine ‘approaches the end of its life’.

However, the company celebrated a number of operational milestones in the year, including the ramp-up of its Juanicipio silver mine and the connection of its Pyrites Plant to Fresnillo’s electricity grid.

Bailleres’s statement continued: ‘We continue to operate in a challenging environment. Though the final effects of the pandemic have now largely dissipated, global geopolitical events have created strains in the supply chain and driven higher costs. We have also been affected by changing government policies in Mexico, which have impacted the permitting process, as well as the stronger peso.’

Fresnillo is working with its suppliers to mitigate the effects of inflation and a strong peso through the improvement of supply chain logistics and a reduction in costs.

‘2024 has started as expected and our full year guidance is unchanged’, Bailleres added.

In April, Fresnillo said silver production in 2024 is forecast at between 55.0 and 62.0 million ounces, alongside 580,000 to 630,000 ounces of gold.

Shares in Fresnillo were down 2.0% at 627.00 pence each in London on Tuesday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.