Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Mexico-focused miner Fresnillo on Wednesday raised its annual outlook for gold production, supported by improved performance at its Herradura mine and higher volumes at its Noche Buena mine in the Latin American country.
The group said it expects to record attributable gold output in the range of 590,000 to 640,000 ounces for the year.
Chief executive officer Octavio Alvídrez said the group’s mines, which faced labour shortages last year due to reforms in Mexico that restricted the hiring of sub-contractors, are now “well-staffed” for the year ahead.
“Our recruitment and training campaigns are now complete and the mines are well-staffed for 2023,” Alvidrez said in a statement.
London-listed Fresnillo, which operates seven mines in Mexico, has seen its production hit by supply chain snags due to covid-related lockdowns in China and higher input and operating costs following the Russian invasion of Ukraine.
The miner said its attributable gold production for 2022 was down 15% at 635,900 ounces due to lower ore grades and a fall in the volume of processed ore.
(By Muhammed Husain; Editing by Sherry Jacob-Phillips)
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