Mexico's top gold miners see output slip

Friday, August 26, 2016

Mexico's top 10 gold miners saw production dip in Q2, mainly due to lower output at Goldcorp's Peñasquito mine.

The companies produced 760,995oz of the yellow metal, compared to 927,352oz in the same period last year. 

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The fall came despite Torex Gold's entry into the top five gold miners in the first full quarter of production at the El Limón-Guajes mine. 

Mexico's 10 largest miners produced 818,383oz gold in Q1.



TOP 10

1. Industrias Peñoles 226,561oz

The Mexican miner cemented its position as the country's top gold producer, with output up from 191,357oz in 2Q15.

The vast bulk of production was from precious metals subsidiary Fresnillo, at 218,000oz, up 19.6% due to improvements at the Herradura and Noche Buena mines.

The company upped 2016 gold production guidance to 850-870,000oz from 775-790,000oz previously.

2. Goldcorp 102,000oz

In contrast, Canada's Goldcorp saw a sharp drop in its Mexican output, down more than two thirds from 365,000oz.

This was due to a slump at Peñasquito to 36,000oz from 298,000oz, resulting from lower grades, a 10-day plant shutdown for maintenance and a longer-than-expected period to ramp back up to full production. Output is expected to improve in H2.

3. Minera Frisco 98,376oz

The Mexican miner, controlled by billionaire Carlos Slim, saw gold production dip from 104,322oz, due to reduced output at the El Coronel, El Porvenir and Asientos mines.

4. Agnico Eagle 89,294oz

Canada-based Agnico saw production slip from 92,056oz due to lower output at its Pinos Altos and Creston Mascota mines, partly offset by an improvement at La India.

5. Torex Gold 83,256oz

Torex achieved a top five spot following the first quarter of commercial production at its El Limón-Guajes mine.

The company is likely to rise up the rankings as production ramps up to full capacity of 14,000t/d throughput, compared to an average of 10,168t/d in Q2.

6. Alamos Gold 49,820oz

Output declined from 56,241oz as a result of lower production at the El Chanate operation. Production at the Mulatos mine, where output is expected to rise next year as new ore bodies come on stream, was flat at 33,000oz.

7. Primero Mining 28,978oz

The Canada-based miner saw output fall from 36,500oz at its San Dimas operation in Mexico, impacted by lower throughput and grades. Primero announced an overhaul of safety protocols at the mine in Q1.

8. Argonaut Gold 28,477oz

Argonaut saw production slip from 35,357oz partly due to lower grades at its El Castillo and La Colorada operations. The company is progressing its San Agustín and San Antonio projects in Mexico.

9. Pan American Silver 28,370oz

Gold production across the company's three Mexican mines increased from 23,650oz. The company is currently expanding its La Colorada and Dolores operations in the country.

10. Timmins Gold 25,863oz

Taking the 10th spot, Timmins upped output from 22,869oz at its San Francisco mine. Following gold price improvements, the company axed proposals to place the operation on care and maintenance.