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

 

1Q22

4Q21

% change

1Q21

% change

FY21

FY20

% change

Silver (koz)

12,528

12,230

2.4

11,839

5.8

49,961

50,270

(0.6)

Silverstream (koz)

748

684

9.4

796

(6.0)

3,134

2,780

12.7

Total Silver (koz)

13,276

12,914

2.8

12,635

5.1

53,095

53,050

0.1

Gold (oz)

149,792

150,313

(0.3)

228,193

(34.4)

751,203

769,618

(2.4)

Lead (t)

12,244

11,837

3.4

15,340

(20.2)

56,573

63,242

(10.5)

Zinc (t)

23,726

22,899

3.6

25,881

(8.3)

99,397

106,793

(6.9)

Operational Highlights - 1Q22


Silver

  • Quarterly attributable silver production of 13.3 moz (including Silverstream), up 2.8% vs. 4Q21 mainly driven by a higher contribution of ore from Juanicipio and a higher volume of ore processed and ore grade at Fresnillo, partly offset by the anticipated lower volume of ore processed at Saucito.
  • Quarterly attributable silver production increased 5.1% vs. 1Q21 primarily due to a higher contribution of ore from Juanicipio, offset by the anticipated lower volume of ore processed at Saucito.

Gold

  • Quarterly attributable gold production of 149.8 koz, flat vs. 4Q21 mainly due to a lower volume of ore processed at Noche Buena and to a lesser extent, a lower volume of ore processed at Saucito and San Julian Veins, mitigated by a higher ore grade and recovery rate at Herradura.
  • Quarterly attributable gold production decreased 34.4% vs. 1Q21 primarily due to an expected lower volume of ore processed and ore grade at Herradura.

By-products

  • Quarterly attributable by-product lead production increased 3.4% vs. 4Q21 due to a higher contribution of development ore from Juanicipio, partially offset by a lower ore grade at San Julián DOB.
  • Quarterly attributable by-product zinc production increased 3.6% vs. 4Q21 due to a higher contribution of development ore from Juanicipio and a higher ore grade and recovery rate at Saucito, offset by a lower ore grade at Fresnillo.
  • Quarterly attributable by-product lead and zinc production decreased 20.2% and 8.3% vs. 1Q21 respectively, driven primarily by lower ore grades and decreased volumes of ore processed at Saucito.

Development Projects

Construction of the Juanicipio plant was delivered on schedule during 4Q21. We remain focused on complying with the requirements from the state-owned electricity company and the energy regulator to complete the tie-in to the national power grid, expected in mid-2022. Once the required permits have been granted, we expect to ramp up operations to 85%-90% capacity by the end of the year.

2022 Outlook

2022 guidance remains unchanged. Attributable silver production is expected to be in the range of 50.5 to 56.5 moz (including Silverstream) while attributable gold production is expected to be in the range of 600 to 650 koz.