Peñoles reported that it increased its gold, silver and lead mining production in the second quarter of 2021 compared to the same period of the previous year.
Peñoles’ net sales in the second quarter of the current year amounted to 1,574.2 million dollars, higher by 69.2%, whose variation is integrated as follows: 439.4 million from the best prices of metals and realization on the sale of concentrates; 225.1 million higher volumes sold, mainly gold, silver, zinc and copper; as well as 6.2 million derived from the sale of other products and services.
This was accompanied by a negative variation in the opportunity cost of hedging sales of $ 26.8 million. Cost of sales reported 1,058.5 million dollars, an increase of 46.0% year-on-year.
Peñoles mining production was as follows:
Gold (+ 9.3%)
Quarterly gold production increased compared to 2Q20 due to a higher volume of ore processed at Herradura (after work restrictions related to Covid-19 last year), and to a lesser extent, higher head grade at Saucito and a higher volume of ore processed on Noche Buena. This was partially offset by a lower grade at Cienega.
Silver (+ 12.5%)
The increase in silver contents was mainly due to a higher head grade in San Julián (Disseminated), the processing of ore from Juaniciple at the Fresnillo beneficiation plant, as well as the progress in the Capela operations and the better grades in Sabinas. This was partially offset by lower production at Saucito and Fresnillo due to lower head grades and volume benefited.
Lead (+ 3.7%)
The better grades and recoveries at Saucito and San Julián, as well as the increase in production at Capela and Sabinas, mitigated the production deficit at Fresnillo and Ciénega, which obtained lower grades and recoveries.
Zinc (-4.3%)
The production of zinc contents was affected mainly by the suspension of activities in Bismark and Madero, the shortfalls of which were supplied with the volume of Capela, Saucito due to better grades and recoveries, San Julián with better grades and to a lesser extent by Tizapa and Sabinas with higher volumes processed and recoveries.
Copper (+ 28.3%)
The increase in copper content was due to the contribution of Capela, in which the efficient separation of lead-silver in the flotation circuit has been improved, in addition to Sabinas due to a higher volume of ore benefited with better head grade and Tizapa with greater recovery; allowing to compensate the deficits of Bismark (due to closure of operations) and Velardeña, due to lower grade and recovery
Cathodic copper (-79.4%)
The lower production was due to the fact that the mineral extraction was suspended and only the leaching of the deposited mineral continues to recover the copper from the Milpillas patios.
Peñoles
The company was founded in 1887 and is a mining group with integrated operations for the smelting and refining of non-ferrous metals and the manufacture of chemical products.
Today, the company is one of the world’s two largest refined silver producers; It is the Latin American leader in the production of refined lead and gold, and is among the world’s leading producers of refined zinc and sodium sulfate.
