Output of top gold miners in Mexico edges lower

Monday, November 21, 2016

Gold output of the top 10 producers in Mexico declined in Q3 mainly due to lower production at Goldcorp's Peñasquito operation.

Output of the 10 companies totaled 816,632oz, down from 831,905oz reported by the same miners in 3Q15, according to figures compiled by BNamericas.

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Seven of the 10 saw output rise over the period, with three recording declines. Mexico's top 10 gold producers reported output of 760,995oz in Q2.

TOP PRODUCERS: 100,000oz plus

Local group Industrias Peñoles was the country's top gold producer in the quarter, with output of 228,977oz, up from 190,842oz a year before.

The bulk of yellow metal production (219,840oz) was from mines operated by subsidiary Fresnillo, up from 181,799oz, largely due to higher volumes and grades at the Herradura and Noche Buena mines.

Canada's Goldcorp was the country's second biggest gold miner at 169,000oz, down from 307,100oz, mainly due to a sharp decline at Peñasquito to 121,000oz from 236,000oz because of lower grades.

Gold production was also down at Goldcorp's Los Filos operation (pictured), which the company plans to sell.

MID-TIERS: 50,000-99,999oz

Four companies produced 50-100,000oz gold in the quarter. Mexico City-based Minera Frisco generated 91,762oz of the metal from its portfolio of nine Mexican mines, down from 94,537oz.

Just behind Frisco was Toronto-based Agnico Eagle Mines at 91,425oz, up from 89,045oz due to higher output at the Pinos Altos and La India mines.

Toronto's Torex Gold secured the fifth spot thanks to 77,915oz from its El Limón-Guajes mine, which began commercial production in March.

Fellow Ontario-based miner Alamos Gold's Mexico production was 55,599oz, up from 49,432oz, with the Mulatos mine contributing 38,500oz, up 11,000oz, partly offset by lower output at El Chanate.

SMALLER PLAYERS: 20,000-49,999OZ

The remainder of the top 10 produced less than 30,000oz gold at their Mexican operations in the quarter.

Vancouver-based Pan American Silver's output at its three Mexican mines was 29,220oz, up 20oz from the prior-year period, while Nevada-based Argonaut Gold produced 25,659oz at its La Colorada and El Castillo mines, down from 28,207oz.

Vancouver's Timmins Gold ranked ninth with output of 24,052oz at its San Francisco mine, up from 23,387oz, followed by Toronto-based Yamana Gold's 23,023oz at the Mercedes mine, up from 20,155oz. Mercedes was sold to Thunder Bay headquartered Premier Gold Mines subsequent to Q3.