Mines in Operation

Fresnillo B Model Operate Small

Strategic focus:
Maximise the potential of existing operations

Operational focus and criteria

Our operating mines are located within prime gold and silver mining districts in Mexico, supported by extensive investment in technology, that enhances productivity and efficiency, teamed with high-quality assets selectively added in exploration and development phase, we remain competitively positioned in cash cost performance.

Key assets

Asset

Type

Commodity

Year

» Fresnillo

Underground

Silver primary

1554

» Saucito

Underground

Silver primary

2011

» Ciénega

Underground

Gold/Silver

1992

» Herradura

Open pit

Gold

1997

» Soledad-Dipolos

Open pit

Gold

2010

» Noche Buena

Open pit

Gold

2012

» San Julián

Underground

Silver primary

2016

*Operations at Soledad-Dipolos currently suspended.

Total Quarterly Production

 

3Q18

3Q17

% change

2Q18

YTD18

YTD17

% change

Silver (koz)

14,738

13,529

8.9

14,459

43,432

39,281

10.6

Silverstream (koz)

796

1,084

-26.6

884

2,865

3,376

-15.1

Total Silver (koz)

15,533

14,613

6.3

15,343

46,297

42,657

8.5

Gold (oz)

225,202

233,311

-3.5

233,841

690,501

679,081

1.7

Lead (t)

13,076

12,472

4.8

13,223

37,928

35,318

7.4

Zinc (t)

22,935

17,688

29.7

22,014

63.989

46,413

37.9

Annual Production

Sum of ounces produced, plus ounces accrued through the Silverstream contract. This indicator monitors total production levels at our mines and contributions from advanced development projects.

AR17 Silver Gold Reserves

*Source: Fresnillo 2017 Annual Report - Annual Silver / Gold production


Operational Highlights (2Q18)

  • Quarterly and first half silver production (including Silverstream), up 5.7% and 9.7% respectively over the corresponding periods in 2017 primarily due to start up of operations at San Julián JM (Phase II) in July 2017.

  • Quarterly gold production of 234 koz, up 4.6% vs. 2Q17 due to higher ore grade, throughput and recovery rate at Saucito and higher ore grades at Noche Buena, Herradura and Fresnillo.

  • First half gold production of 465 koz up 4.4% vs. 1H17, due to ongoing decrease in gold inventories and higher ore grade at Herradura and higher volume of ore processed and ore grade at Saucito.

  • Ongoing tests at the Herradura leaching pads have resulted in an increase of 98.9 koz of gold in the inventory as of 1 January 2018.

  • Full year consolidated production guidance marginally revised: total gold production 900 – 930 koz (previously 870 – 900 koz) and total silver production 64.5 – 67.5 moz (previously 67 – 70 moz) including Silverstream.

Operational Highlights (1H18/1H17 comparisons)

  • Silver production of 30.8 moz (including Silverstream), up 9.7%, and gold production of 465 koz, up 4.4%

  • Ongoing tests at Herradura leaching pads resulted in increase of 98.9 koz gold in inventory as of 1 January 2018

  • Full year consolidated production guidance marginally revised: total gold production 900 – 930 koz (previously 870 – 900 koz) and total silver production 64.5 – 67.5 moz (previously 67 – 70 moz) including Silverstream

  • Pyrites plant at Saucito commissioned with minimal delays and on budget

  • Final testing of second line dynamic leaching plant on track with commercial production expected 3Q18.