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

 

1Q19

1Q18

% change

4Q18

YTD18

YTD17

% change

Silver (koz)

12,372

14,235

-13.1

14,647

58,079

54,238

7.1

Silverstream (koz)

766

1,186

-35.4

860

3,725

4,435

-16.01

Total Silver (koz)

13,138

15,421

-14.8

15,507

61,804

58,673

5.3

Gold (oz)

211,110

231,458

-8.8

232,026

922,527

911,132

1.3

Lead (t)

12,125

11,629

4.3

15,252

53,181

48,153

10.4

Zinc (t)

21,752

19,040

14.2

24,531

88,520

65,266

35.6

Annual Production

AR18 Production Proven And Probable Reserves

AR18 Silver Gold Resources II

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

Operational Highlights - 1Q19

  • Quarterly silver production of 13.1 moz (including Silverstream) down 14.8% vs. 1Q18 mainly due to the lower ore grade and throughput at Fresnillo

  • Quarterly silver production (including Silverstream) down 15.3% vs. 4Q18 as a result of lower volumes of ore processed and lower ore grades at both San Julián Disseminated Ore Body and Saucito.

  • Quarterly gold production of 211.1 koz, down 8.8% vs. 1Q18 mainly due to a lower volume of ore processed at Noche Buena and a slower overall speed of recovery on the leaching pads at Herradura.

  • Quarterly gold production down 9.0% vs. 4Q18, driven by lower production from Noche Buena, Herradura, San Julián Veins and Saucito

  • Construction of the Pyrites plant (phase II) in the Fresnillo district remains on track and on budget, with commissioning expected in the second half of 2020

  • Board approval for development of the Juanicipio project, owned by Fresnillo plc (56%) and MAG Silver Corp (44%), announced today

  • Outlook unchanged: on track to achieve 2019 production guidance of 58-61 moz silver, (including Silverstream) and 910-930 koz gold

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