Crispr Therapeutics shares tumble after significant earnings miss
Investing.com -- Shares of Fresnillo PLC (LSE:LON:FRES) climbed 2.3% following the release of their full-year production numbers, which showed silver production in line with expectations and a notable increase in gold output.
The results indicated that the company’s silver production for FY24 reached 56.3 million ounces, matching the company’s guidance range of 55-62 million ounces and only slightly below the consensus estimate of 57.2 million ounces.
Gold production for the same period exceeded expectations, coming in at 631.6 thousand ounces, which is 7% higher than the consensus (592.9Koz). The production beat was primarily attributed to the Herradura mine, where both volumes and grades surpassed forecasts.
However, the company reported a 7.1% decline in silver reserves year-over-year, mainly due to mining depletion and a more conservative approach to reserve estimation at certain mines. Conversely, gold ore reserves saw a 2.5% increase year-over-year, benefiting from higher price assumptions and revised economic parameters.
Looking forward, Fresnillo’s FY25 guidance for silver remains unchanged, while gold production guidance has been revised downward due to a new mine plan at the Herradura mine, which aims to reduce the strip ratio and focus on higher-grade material with better margins.
RBC Capital Markets commented on the results, stating, "We expect a positive reaction to today’s results."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.