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 Production

 

3Q19

2Q19

% change

3Q18

% change

YTD19

YTD18

% change

Silver (koz)

12,624

13,636

-7.4

14,738

-14.3

38,633

43,432

-11.0

Silverstream (koz)

659

782

-15.7

796

-17.2

2,207

2,865

-23.0

Total Silver (koz)

13,283

14,418

-7.9

15,533

-14.5

40,839

46,297

-11.8

Gold (oz)

209,752

221,307

-5.2

225,202

-6.9

642,169

690,501

-7.0

Lead (t)

15,561

13,039

19.3

13,076

19.0

40,725

37,928

7.4

Zinc (t)

25,340

20,654

22.7

22,935

10.5

42,406

63,989

5.9

Annual Production

AR18 Production Proven And Probable Reserves

AR18 Silver Gold Resources II

*Source: Fresnillo Annual Report 2018 - Annual Silver / Gold production


Operational Highlights - 1H19/1H18 comparisons

  • Silver production of 27.6 moz (including Silverstream), down 10.4%, and gold production of 432 koz, down 7.1%

  • Construction of Juanicipio remains on track to be concluded by the end of 2020.

  • Construction of the pyrites plant (phase II) at Fresnillo continued to progress, with commissioning expected by the end of 2020.

  • Optimisation of the Fresnillo flotation plant to cope with higher content of lead and zinc is progressing according to plan and is expected to be concluded by 2H20.

  • A programme to control costs and further operational measures to increase productivity will be deployed in 2H19.

Operational Highlights - 3Q19

Silver

  • Quarterly silver production of 13.3 moz (incl. Silverstream) down 7.9% vs. 2Q19 mainly driven by a lower ore grade at Saucito and at San Julián Disseminated Ore Body (DOB).

  • Quarterly silver production (incl. Silverstream) down 14.5% vs. 3Q18 primarily driven by the expected lower ore grade at Saucito and, to a lesser extent, lower ore grades at Fresnillo and San Julián (veins and DOB).

  • YTD silver production (incl. Silverstream) down 11.8% vs. YTD18 due to lower ore grades at both Fresnillo and Saucito.

Gold 

  • Quarterly gold production of 209.8 koz, down 5.2% vs. 2Q19 mainly due to a lower ore grade at Herradura.

  • Quarterly gold production down 6.9% vs. 3Q18 as a result of a lower grade and lower volume of ore processed at both Herradura and San Julián veins, and a lower volume of ore processed at Noche Buena.

  • Year to date gold production down 7.0% vs. YTD18 driven by a lower volume of ore processed at Noche Buena, lower speed of recovery and volume of ore processed at Herradura and lower ore grade at San Julián Veins.

By-Products

  • Quarterly by-product lead production increased 19.3% and 19.0% vs. 2Q19 and 3Q18 due to a higher ore grade and ore throughput at Fresnillo and a higher ore grade and improved recovery rate at Ciénega.

  • Year to date lead production increased 7.4% vs. YTD18 due to higher recovery rate and ore grade at San Julián DOB and a higher ore grade at Saucito.

  • Quarterly by-product zinc production increased 22.7% and 10.5% vs. 2Q19 and 3Q18 primarily driven by higher ore grade, volume of ore processed and recovery rate at Fresnillo.

  • Year to date by-product zinc production increased 5.9% vs YTD18 due to higher grades and recovery rates at Ciénega and Saucito and higher ore grade at San Julián DOB, offset by a lower ore grade and rate of recovery at Fresnillo.

Development Projects

  • Construction of the Juanicipio project continued, with development already reaching over 22 kms. A new contractor has been appointed to further accelerate development rates. We are concluding the detailed engineering.

  • Construction of the Pyrites plant (phase II) in the Fresnillo district remains on track and on budget, with commissioning expected in 2H20.

  • Fresnillo flotation plant optimisation to cope with higher content of lead and zinc is progressing according to plan and is expected to be concluded on time by 2H20.

Outlook

  • FY 2019 silver and gold production likely to be at the lower end of the guided ranges of 55-58 moz (including Silverstream) silver and 880-910 koz gold respectively.

  • Higher volume of ore processed at Fresnillo combined with higher grades at Saucito and Fresnillo expected to result in higher overall fourth quarter silver production.

  • Completion of the 13th leaching pad at Herradura and faster speed of recovery expected to result in higher overall fourth quarter gold production.