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Aug 4 (Reuters) - Fresnillo Plc, the world’s biggest primary silver producer, said it would cut its planned capital expenditure for this year by 19 percent to $570 million, hurt by volatility in metal prices.
About $90 million of the cut would come from deferred spending at its Cienega and Saucito mines, Chief Executive Octavio Alvídrez said on a media call.
He said the supply of silver to the market would come down if prices continued to stay low.
“If these kinds of prices remain for a longer period, then I would say that we would start seeing some closure of production,” Alvídrez said.
Fresnillo, which mines silver and gold from six mines in Mexico, said it would defer about $130 million of its previously planned $700 million expenditure to 2016.
The miner’s profit fell 44.3 percent to $76.4 million for the six months to June 30.
Gold prices are near a 5-1/2 year low, pressured by expectations that the U.S. Federal Reserve is well on course to raise interest rates this year.
Shares in the company were down 1 percent at 626.63 pence on the London Stock Exchange at 0756 GMT. (Reporting By Mamidipudi Soumithri in Bengaluru; Editing by Anupama Dwivedi and Gopakumar Warrier)