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

 

2Q19

1Q18

% change

2Q18

1H19

1H18

% change

Silver (koz)

13,636

12,372

10.2

14,459

26,009

28,694

-9.4

Silverstream (koz)

782

766

2.1

884

1,548

2,070

-25.2

Total Silver (koz)

14,418

13,138

9.7

15,343

27,557

30,764

-10.4

Gold (oz)

221,307

211,110

4.8

233,841

432,417

465,299

-7.1

Lead (t)

13,039

12,125

7.5

13,223

25,164

24,853

1.3

Zinc (t)

20,654

21,752

-5.0

22,014

42,406

41,054

3.3

Annual Production

AR18 Production Proven And Probable Reserves

AR18 Silver Gold Resources II

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

Operational Highlights - 2Q19

  • Quarterly silver production of 14.4 moz (including Silverstream) up 9.7% vs. 1Q19 driven by higher ore grades and volume of ore processed at both Fresnillo and San Julián Disseminated Ore Body (DOB), and higher recovery rates at Saucito.

  • Quarterly silver production (including Silverstream) down 6.0% vs. 2Q18 due to expected lower ore grade and volume of ore processed at Saucito, and lower ore grade at Fresnillo.

  • First half silver production (including Silverstream) down 10.4% vs. 1H18 due to lower volumes of ore processed and lower ore grades at both Fresnillo and Saucito.

  • Quarterly gold production of 221.3 koz, up 4.8% vs. 1Q19 mainly due to a higher volume of ore processed and higher grade at Noche Buena and Fresnillo, and an increased ore grade and higher recovery rate at Herradura.

  • Quarterly gold production down 5.4% vs. 2Q18 as a result of a lower volume of ore processed at Noche Buena and lower ore grade and ore processed at Saucito.

  • First half gold production down 7.1% vs. 1H18 primarily driven by a lower volume of ore processed at Noche Buena and lower speed of recovery and ore processed at Herradura.

Operational Highlights - FY18

  • Record annual silver production of 61.8 moz (including Silverstream) up 5.3% vs. 2017

  • Annual gold production of 922.5 koz, up 1.3% vs. 2017

  • Commissioned 1st Stage of Pyrites plant and the 2nd DLP at Herradura

  • Exploration spend of US$172.8 million, up 22.5% YoY with good results at the Guanajuato and Rodeo projects, as well as positive steps taken at two projects in Chile

  • Silver resources of 2.2 billion ounces and gold resources of 39.1 million ounces

  • New COO & Assistant Vice President of Project Development

Outlook - 2019

  • Silver production expected to be slightly lower, in the range of 58 to 61 moz, including the Silverstream.

  • Gold production expected to be flat, in the range of 910-930 koz.

  • 2019 exploration budget of approximately US$140 million (including capitalised exploration expenses).

  • Capital expenditure is anticipated to be approximately US$710 million