Fresnillo’s gold sales outshine silver

The world's number one silver miner London-listed Fresnillo produced a record 248,795 ounces of gold in the first six months of the year, up more than 20% compared to the same period in 2011, while silver production fell 6.5%, providing the company with more revenue from gold than silver for the first time.

In total, Mexio-based Fresnillo’s revenues rose 2.7% to $1.09 billion during the first six months compared to last year to $1.09bn.

The company is sticking to plans to spend $680 million this year including ramping up production at its Noche Buena mine. The firm has five operating mines and this year forecasts 41 million ounces of silver produced and 460,000 ounces of gold.

Outgoing CEO Jaime Lomelin told FoxBusiness Fresnillo's long-term price for gold is still at $1,200 while its long-term price for silver is $18–$20. This year gold will continue to hover at current levels of $1,600 and silver at $25–$30.