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Mexican miner Fresnillo reports flat third-quarter silver output

Reuters - UK Focus

Oct 15 (Reuters) - Mexican gold and silver miner Fresnillo Plc said third-quarter silver production remained at similar levels to a year earlier as higher ore volumes processed at its Saucito mine and increased production from Silverstream compensated for lower grade-ore mined at its Fresnillo (Other OTC: FNLPF - news) mine.

The miner reiterated its full-year 2014 forecast of 43 million silver ounces and said it was on track to start production from the Saucito II mine by the end of this year.

Attributable silver production for the quarter ended Sept. 30 was 11.08 million ounces, compared with 11.11 million ounces a year earlier.

The company, which recently bought out its joint venture partner's 44 percent stake in the Penmont project, said it had implemented a one-off hedging programme to protect its investment while retaining partial exposure to gold prices. (Reporting by Roshni Menon in Bangalore; Editing by Anand Basu)