Fresnillo Maintains Growth Plans Despite Drop in Metal Prices

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Researched by Industrial Info Research Latin America (Córdoba, Argentina)--Precious metals producer Fresnillo Plc (LSE: FRES) (Mexico City) said that it will maintain its business plan in Mexico, although it will cut back exploration and operation budgets.

The historical drop in the prices of gold and silver mining led the company to rethink its strategy, but it did not keep it from progressing on projects. The company plans to invest between $700 million and $800 million this year, and it will invest the same amount next year to advance its long-term goals of producing 68 million ounces of silver and 500,000 ounces of gold.

A dynamic leaching plant at La Herradura Mine, in Sonora, is under construction with an investment of approximately $120 million. It is expected to be operational by the end of the year. Also, a grassroot silver-gold project San Julian, Chihuahua, will begin operations in the second half of 2014. The estimated investment in this project is $500 million.

Fresnillo's expansion of the Saucito Mine in Durango, Saucito II, is expected to be ready in the first half of 2015 and will have an investment of $235 million.

Fresnillo is the world's largest primary silver producer and Mexico's second-largest gold producer. Its principal Mexican properties include operating gold and silver mines Fresnillo, Saucito and La Herradura.

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