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

 

3Q21

2Q21

% change

3Q20

% change

YTD21

YTD20

% change

Silver (koz)

11,800

14,092

(16.3)

12,572

(6.1)

37,730

38,063

(0.9)

Silverstream (koz)

851

803

6.0

709

20.2

2,451

2,037

20.3

Total Silver (koz)

12,651

14,895

(15.1)

13,281

(4.7)

40,181

40,100

0.2

Gold (oz)

172,534

200,163

(13.8)

172,718

(0.1)

600,890

554,037

8.5

Lead (t)

13,010

16,386

(20.6)

15,144

(14.1)

44,736

45,229

(1.1)

Zinc (t)

22,930

27,687

(17.2)

26,320

(12.9)

76,498

75,701

1.1

Operational Highlights - 3Q21


Silver

  • Year-to-date attributable silver production of 40.2 moz (including Silverstream), in line with YTD20 due to a higher ore grade at San Julián DOB and, to a lesser extent, the contribution of development ore from Juanicipio, offset by a lower ore grade and volume of ore processed at Saucito.
  • Quarterly attributable silver production of 12.7 moz (including Silverstream), down 15.1% vs. 2Q21 mainly driven by the anticipated lower ore grade at San Julián Disseminated Ore Body (DOB) following the exceptional high grades in the previous quarter. The lower ore grade and volume of ore processed at Fresnillo and Saucito also contributed to the decrease in quarterly attributable silver production.
  • Quarterly attributable silver production (including Silverstream) decreased 4.7% vs. 3Q20 due to a lower volume of ore processed and a lower ore grade at Saucito, mitigated by a higher ore grade at San Julián DOB.

Gold

  • Year-to-date attributable gold production of 600.9 koz, up 8.5% vs. YTD20, primarily due to the higher volume of ore processed at Herradura following the lifting of Covid-19 restrictions which resulted in lower volumes of ore deposited last year, partly offset by a lower ore grade at Ciénega.
  • Quarterly attributable gold production of 172.5 koz, down 13.8% vs. 2Q21, primarily due to lower volumes of ore processed and recovery rates at Herradura and Noche Buena as well as a lower volume of ore processed and ore grade at Saucito.
  • Quarterly attributable gold production in line with 3Q20 as a result of a lower ore grade at Ciénega and San Julián Veins, offset by the good performance at Herradura and Noche Buena.

By-products

  • Year-to-date attributable by-product lead production remained flat vs. YTD20 primarily due to lower ore grades at both Fresnillo and Ciénega, compensated by higher ore grades at both Saucito and San Julián DOB
  • Year-to-date attributable by-product zinc production remained flat vs. YTD20 due to a higher ore grade at Saucito, offset by a lower ore grade at Ciénega.
  • Quarterly attributable by-product lead and zinc production decreased 20.6% and 17.2% vs. 2Q21 respectively, driven primarily by lower ore grades and decreased volumes of ore processed at Saucito.
  • Quarterly attributable by-product lead production decreased 14.1% vs. 3Q20 due to a lower ore grade and volume of ore processed at Saucito.
  • Quarterly attributable by-product zinc production decreased 12.9% vs. 3Q20 due to a lower ore grade and volume of ore processed at Saucito, mitigated by a higher ore grade at Fresnillo.

Development Projects

The construction of the Juanicipio plant continued to progress. Pre-commissioning testing has begun for key systems as we approach mechanical completion. Our focus in the upcoming weeks will be to progress from construction to no-load and water testing, with full load commissioning with ore expected by year end.

2021 Outlook

We remain on track to meet our 2021 full year guidance of 53.5 to 59.5 moz of silver (including Silverstream) and 675 to 725 koz of gold. We continue to monitor the possible impact of the labour reform and general shortage of personnel, as well as potential headwinds, in particular inflationary pressures and the average revaluation of the Mexican peso vs US dollar, which may impact costs.