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

 

1Q21

4Q20

% change

1Q20

% change

FY20

FY19

% change

Silver (koz)

11,839

12,207

(3.0)

12,547

(5.6)

50,270

51,764

-2.9

Silverstream (koz)

796

743

7.1

681

16.9

2,780

2,850

-2.5

Total Silver (koz)

12,635

12,950

(2.4)

13,228

(4.5)

53,050

54,614

-2.9

Gold (oz)

228,193

215,581

5.9

196,963

15.9

569,618

875,913

-12.1

Lead (t)

15,340

18,013

(14.8)

13,905

10.3

63,242

55,722

13.5

Zinc (t)

25,881

31,092

(16.8)

22,655

14.2

106,793

92,578

15.4

Operational Highlights - 1Q21


Silver

  • Quarterly attributable silver production of 12.6 moz (including Silverstream), down 2.4% vs. 4Q20, driven by a lower volume of ore processed at San Julián Disseminated Ore Body (DOB) and a lower ore grade at Saucito and the Pyrites plant, mitigated by a higher development ore grade at Juanicipio.
  • Quarterly attributable silver production (including Silverstream) was down 4.5% vs. 1Q20, mainly due to the lower ore grade at Saucito, mitigated by a higher ore grade at San Julián DOB and the contribution from Juanicipio.

Gold

  • Quarterly attributable gold production of 228.2 koz, up 5.9% vs. 4Q20, mainly due to the higher ore grade at Herradura and Saucito, partly offset by lower volumes of ore processed at Noche Buena and decreased ore throughput and lower ore grade at San Julián Veins.
  • Quarterly attributable gold production increased 15.9% vs. 1Q20 due to an increase in volume of ore processed and higher ore grade at Herradura and, to a lesser extent, a higher ore grade at Saucito. This was partly offset by a lower volume of ore processed and ore grade at Noche Buena as the mine approaches its planned closure.

By-products

  • Quarterly attributable by-product lead and zinc production decreased 14.8% and 16.8% respectively vs. 4Q20, driven primarily by lower ore grades and to a lesser extent, lower volumes of ore processed at both Saucito and Fresnillo.
  • Quarterly attributable by-product lead and zinc production increased 10.3% and 14.2% vs. 1Q20 respectively, due to higher ore grades at Saucito, partially offset by lower ore grades and recovery rates at Ciénega.

Development Projects

  • Continued progress was achieved on the construction of the Juanicipio processing plant and civil works during the quarter. Commissioning of the plant by 4Q21 remains on track.
  • As previously reported, the Fresnillo flotation plant optimisation to cope with higher content of lead and zinc was concluded in 4Q20. The connection of this new circuit to the beneficiation plant was completed in 1Q21, with programming of the control loop system expected to be finalised in early 2Q21.

2021 Outlook

2021 guidance remains unchanged despite the continued uncertainty presented by Covid-19 in Mexico. Attributable silver production is expected to be in the range of 53.5 to 59.5 moz (including Silverstream) while attributable gold production is expected to be in the range of 675 to 725 koz.