May 25, 2011 / 11:47 PM / 8 years ago

Mexican miner Penoles hedges silver, gold output

MEXICO CITY, May 25 (Reuters) - Mexican miner Penoles (PENOLES.MX) said on Wednesday it hedged the bulk of the gold production it will receive from the Noche Buena mine, part-owned by its giant precious metals mining subsidiary Fresnillo.

Noche Buena is an open pit gold mine in the northern Mexican state of Sonora that is 56 percent owned by Fresnillo (FRES.L) with the rest controlled by Newmont (NEM.N). It is expected to start production next year.

Fresnillo, the largest primary silver producer in the world, says Noche Buena will produce 376,000 ounces of gold over the first five years in operation.

London-listed Fresnillo says it does not hedge its metals output but parent company Penoles, which controls 77 percent of Fresnillo, hedged 146,280 ounces of gold from Noche Buena through 2016. Penoles will receive 43 percent of the gold output from the mine.

Penoles also hedged 13.4 million ounces of silver through 2013 and 17,502 ounces of gold from other mines through 2012.

The mining company said in a statement it hedged 10,810 tonnes of zinc, 5,510 tones of lead, 2,960 tonnes of copper this year. (Reporting by Mica Rosenberg; Editing by Lisa Shumaker)

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