Fresnillo reported that second-quarter gold and silver production fell due to lower ore grades at key mines, although the Mexican precious-metals miner backed its full-year guidance.

The company produced 154,812 ounces of gold in the second quarter, a 1.9% decrease from the same period last year. This decline was driven by lower ore grades at its Herradura and San Julian Veins sites, though it was partially offset by higher-grade ore at its Fresnillo mine. Despite the year-on-year drop, gold production rose nearly 14% from the previous quarter.

Silver production fared worse, falling nearly 13% on year to 10.9 million ounces. Fresnillo attributed this decrease to a combination of lower grades and a decrease in processed volumes. Compared with the first quarter, silver output decreased 1.7%.