The worlds largest primary silver producer shouldn't be reporting a big grade, and production shortfall quarter after quarter, when the solution to reverse this slide, resides next door (JUAN JV). Buy MAG-out, or start mining yesterday. A production flying start should have been made many years ago.

Fresnillo mine production

 

 

 

3Q12

3Q11

% change

2Q12

YTD 12

YTD 11

% change

Silver prod'n  (kOz)

6,531

6,416

1.8

6,618

19,897

23,281

-14.5

Gold prod'n (Oz)

6,978

6,075

14.9

7,148

22,857

18,559

             23.2

Lead prod'n (t)

3,992

3,171

25.9

4,425

12,693

9,910

           28.1

Zinc prod'n (t)

3,941

2,968

32.8

4,184

12,250

9,547

             28.3

 

Year to date silver production decreased by 14.5% when compared to the same period of 2011 as a result of a 20 percent decline in ore grades (329 g/t 2012 vs. 409 g/t 2011). This was due to, firstly limited access to the San Alberto and Santa Cruz high grade stopes as development took longer than anticipated (we expect to have full access to these stopes by November); and secondly, the natural and anticipated decline in silver grades. However, the increase in the volume of ore milled mitigated these effects and benefited quarterly production, which remained similar to the third quarter of 2011.

GRADE:NOTHING LIKE THE JV. A double plus FRESNILLO's current grade.