Fresnillo plc, the world’s leading silver producer, announced production results for 1Q17 Wednesday, confirming total silver production of 13.5Moz including Silverstream for the first three months of the year. This represents a 10.7 percent rise from the same period in 2016, thanks mainly to the ramp up at the San Julian project in Chihuahua.

“I am pleased to report a solid performance in the first quarter of the year,” said Octavio Alvidrez, the company’s CEO. “Construction of San Julian (phase II) continued with the initial tests, and the project is on track to be commissioned at the end of Q2.”

Fresnillo’s Saucito mine continued to be the most productive asset, delivering 5.1Moz during the first three months of 2017, followed by the company’s flagship Fresnillo mine with 4.4Moz. San Julian added 1.3Moz in just its third quarter of commercial production.

The London-based FTSE 100 member is also one of Mexico’s leading gold producers. The company’s gold production totaled 222koz in 1Q17, a slight drop of 3.3 percent on 1Q16 thanks to a one-off reduction of inventory levels and lower grades at the La Herradura operation.

Alvidrez confirmed the company is on track to meet its yearly production targetĀ for both silver and gold. “We continue to focus on maximizing efficiency and productivity across all our mines, and remain on course to meet our 2017 production guidance 58-61 million ounces of silver and 870-900 thousand ounces of gold,” he said.

Investors reacted poorly to the news, with Fresnillo’s stock price falling 1.6 percentĀ from market opening until 3pm BST.

 
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