Our Business Model

Our formula to extract value from operations reflects the experience and skills of our people who seek and apply optimal mining methods in accordance with the changing characteristics of each mine, and develop initiatives to increase recoveries, operational efficiencies and reduce costs. Operations are supported by extensive investment in technology that enhances productivity and efficiency. When coupled with high-quality assets selectively added in the exploration and development phase, we remain competitively positioned in cash cost performance among industry peers.

We are committed to replenishing reserves every year. The exploration team identifies new resources along with the operating team, who then convert those resources into reserves by narrowing the drilling pattern and mining works. It is the combination of both efforts that enables the Group to achieve this goal.

Projects must meet stringent criteria regarding the volume of silver/gold contained and embedded cost. Economic viability is determined by evaluating factors such as optimal mine design, investment requirements, sustaining capital expenditures and rates of return. Furthermore, because of our focus on district consolidation, we evaluate potential growth in the same geographic region that may create synergies for new future mines. During development and construction stages, we maintain tight discipline to ensure adherence to approved schedules and budget. Additionally, engineering and construction teams work closely with the team that will operate the mine, ensuring smooth transition from construction to commissioning.

The key growth driver for the Group is locating mineral deposits that extend our resource base, with a focus on consolidating mining districts in Mexico and Latin America. We do this through continuous investment in exploration irrespective of price cycles, and ongoing acquisition of mining concessions and surface land. Our geologists have significant technical expertise and a proven track record of new discoveries. We also look for opportunities to acquire early-stage projects with strong growth potential or to partner with other groups through agreements that allow us to share the inherent benefits and risks of prospect exploration.

This comprehensive approach results in a pipeline of projects that extend across the multiple stages of exploration (detection, discovery and definition) and ensure long-term organic growth.

The Fresnillo plc business model is dependent upon solid sustainable development practices. We believe the sole way to secure a thriving and successful business is to safeguard the life and wellbeing of its stakeholders. Given the high social and environmental impact of the mining sector at the local level, we strive to earn and maintain our social licence to operate with responsible stewardship of Health, Safety, Environment and Community Relations (HSECR). We also believe that a commitment to operational efficiency and improved performance in areas such as unit consumption of energy and water, recycling and waste management will benefit our own productivity and reputation, as well as the development of Mexico.