Fresnillo's Silver Output Falls 11.5% in Nine Months to 32.4 Million Ounces
Fresnillo's silver production fell 11.5% in the first nine months to 32.4 million ounces, with third-quarter output down 5.5%, as silver trades below $55.
Fresnillo's third-quarter silver production fell to 10.3 million ounces, down 5.5% from the previous quarter and 11.6% year-on-year, driven by lower grades at Juanicipio, Saucito and San Julián, as well as the end of the Silverstream contribution. First-nine-month production reached 32.4 million ounces, down 11.5%, with annual guidance between 42.0 and 46.5 million ounces.
Silver fell below $55 and was trading at $53.770, down 0.24%. Analysts at Heraeus said gold is caught between rising oil prices, which elevate inflation risks, and falling bond yields, which support it, according to a report cited by Kitco News. They explained that Brent crude climbed back above $110 per barrel following new Houthi attacks in Saudi Arabia, and that Iranian floating oil inventories supplying Chinese refiners ran out in mid-October.
They added that oil for delivery in one year is trading near $89 per barrel, indicating a short-term risk premium and persistent disruption into next year. Analysts believe the near-term rise in oil keeps inflation risks and a December rate hike priced in, offsetting gold's traditional safe-haven support, while the real yield on inflation-protected bonds fell from over 2.9% to around 2.6%, reducing the opportunity cost of holding gold.
In the gold market, Russia sold about 6 tonnes of gold in September for the tenth consecutive month, bringing its reserves down to around 2,260 tonnes, the lowest level since 2019, and central banks made net purchases of 170 tonnes between January and August despite sales by Russia and Turkey.
What Do These Terms Mean?
Bond Yields: The percentage paid annually by a government to its bondholders, which rises when the market price of the bond falls and directly affects gold's appeal.
Real Yield: A bond's yield after adjusting for inflation, often measured via inflation-protected securities; as it declines, the opportunity cost of holding non-yielding gold decreases.
Ounce: A unit of weight for precious metals equal to approximately 31.1 grams, used globally to price gold and silver.
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